Regulatory Information

Our spread betting, CFD and foreign exchange trading businesses are regulated in a number of jurisdictions.

In addition, three of our subsidiaries are subject to regulation as licensed bookmakers by the Gambling Commission.

The regulatory environment

Each company within IG Group is subject to regulation by the appropriate bodies in its territory of operation, and full details of these can be found in the Operating Companies section.

We also operate within a framework of regulation and legislation relating to technology, the provision of internet services and use of the internet.

The ever-changing regulatory environment places demands on the Group, but we have robust training procedures for our staff and an expert Compliance team to ensure that we work successfully within its parameters.

Regulatory capital adequacy

IG Group’s lead regulator is the UK’s Financial Services Authority (FSA), which also regulates our UK subsidiaries (IG Markets Limited and IG Index Limited) as well as IG Group on a consolidated basis. The FSA imposes a minimum level of regulatory capital adequacy for individual regulated UK entities and the Group. Local capital requirements in the Group’s overseas jurisdictions are also taken into account when managing our capital adequacy.

IG Group, for the year ended 31st May 2011, had capital resources of £263.6m (2010: £222.1m). This represented 294.3% (2009: 338.1%) of our Pillar 1 capital resources requirement calculated under FSA rules.

In addition to satisfying the FSA’s Pillar 1 requirements, IG Group also undertakes at least annually an Internal Capital Adequacy Assessment Process (ICAAP). The outcome of the ICAAP is the Internal Capital Assessment (ICA) which was last approved by the Board in January 2011 and assesses the amount of risk-based capital resources requirement (Pillar 2) to be held by the Group. This assessment is also subject to review by the FSA and was last reviewed in February 2010.

Key information about IG Group’s capital adequacy and risk assessment and control processes can be found in the Group’s Pillar 3 Disclosures section.

For details about the role of the Audit Committee and other committees, please see the Board Committees section.

Regulatory documentation

A full list of our RNS releases can be found in the Regulatory News section.

Legal documentation relating to the Group is available in the Articles of Association section.