Registered number:
FOR THE YEAR ENDED 31 MARCH 2023
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GLOBAL MARKETS GROUP LIMITED
COMPANY INFORMATION
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GLOBAL MARKETS GROUP LIMITED
CONTENTS
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GLOBAL MARKETS GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The directors present their strategic report for the year ended 31 March 2023.
Global Markets Group Limited is a private limited Firm incorporated in England and Wales with Firm Registration Number 09493910. It is authorised and regulated by the Financial Conduct Authority ("FCA") as a UK Investment Firm for the conduct of investment and ancillary services and activities under the provisions of the Financial Services and Markets Act 2000 and the Financial Services Act 2021, as subsequently amended or replaced from time to time, and the FCA Rules (Firm Reference Number 744501).
The Firm currently acts as a principal broker with a matched a principal limitation and is authorised to hold client money. It provides execution-only services and operates through the Meta Trader 5 (MT5) platform, which accepts orders from clients trading in financial contracts for differences (“CFDs”) based on Forex, Commodities, Indices and Futures. The transactions are carried out on an over- the-counter basis and thus the Company shall not be a member of any exchange. The Company is focused on offering investment services to retail professional clients through a “Business-to-Consumer” (“B2C”) business segment representing online trading. Clients have direct access and control on the Firm’s trading platform, which is made available through the web page of the Firm (www.gmgmarkets.co.uk ), using the trading platform to submit their orders with the Firm as well as monitor their open positions. The quoted prices are offered through the trading platform, connected directly to the Liquidity Provider’s feed aggregators. The Company has entered into institutional services collaboration agreements with reputable Liquidity Providers, enabling the Firm to assess and select the best available price to be offered to clients on an arms-length basis, where the terms coincide with standard industry practices and provisions. Therefore, the execution venue is the Firm, and it is responsible against the clients for the execution of orders. The Company’s main source of revenue is mainly derived through the bid/ask spread, trading commission and overnight financing fees. The Company’s activities have been very limited since July 2019 further to a decision made at the time to effectively cease client trading activity, whilst seeking a buyer for the business. The Company is aiming to reactivate and grow its operations in Q3 2023.
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GLOBAL MARKETS GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Regulatory Compliance Risk
This is the risk of financial loss, including fines and other penalties, which may arise from non-compliance with laws and regulations. The Company is authorised and regulated by the FCA, and any changes in the regulatory framework or directives relating to the Company's services and products could expose the Company to considerable risk. This risk is limited to a significant extent due to the supervision applied by the Compliance function, the use of external compliance and regulatory advisers, as well as by the monitoring controls of the Company. Economic Sanctions and Financial Crime Compliance Risk The Company will continue to closely monitor the developments around financial crime and sanctions and ensure that it remains fully compliant. New clients are screened against the sanctions lists at the onboarding stage. Existing clients are also regularly screened on an ongoing basis in order to ensure that they have not been added to any sanctioned lists. Litigation Risk This is the risk of financial loss or interruption of the Company's operations arising from the potential of non-execution or violation of legal contracts and consequentially of lawsuits. The risk is restricted by the processes and controls used by the Company to execute its operations. Reputation Risk This is the risk of reputation arising from the negative publicity relating to the Company's operations (whether justified or unjustified) that may result in a reduction of its client base, reduction in revenue, or legal claims against the Company. The Company will continue to adhere to the highest governance / compliance standards, monitor the international developments and maintain effective management of its reputational risk and regulatory position. Political Risk This is the risk of financial loss or interruption of operations due to a change in the political landscape of the Company and its operating markets. The Company will closely monitor the trading activity and fund inflows of retail clients under all circumstances and especially in periods of volatile markets, caused by external factors including war and political developments, to ensure that they are in line with their personal economic profile, declared income and employment conditions. Furthermore, he Company and its Directors will continue to closely monitor the developments in regulatory requirements and guidelines issued by the FCA, EU and other regulators. Credit Counterparty Risk The Company is partnered with reputable counterparties to rely on the execution of orders, with counterparties being assessed both on an ex-ante basis in the form of due diligence being performed, and on an ex-post basis, both on a monthly and annual basis depending on the assessment being conducted. In addition. The Company will monitor the flow of orders and escalate any unusual activity such as high rejection rates to the counterparties for further analysis. Operational and Cyber Resilience Risk Further to the FCA’s published guidance and recommendations for Investment Firms on this matter, the Firm is taking all necessary steps to ensure that it is able to withstand a cyber-attack, including raising staff awareness and ability to deal with an elevated cyber risk and ensuring its business continuity and incident management arrangements are up-to-date, so that it can continue to function and meet its regulatory obligations in the event of unforeseen disruption.
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GLOBAL MARKETS GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Currently, the Company relies on good general financial management with regard to debtors control, working capital levels and cost control and acts accordingly. Going forward, the Company’s Management will assess and monitor the business and its performance, using KPIs comprised mainly of new accounts opened, volumes traded, and overall profitability. As the Company expects to reactivate and grow its operations in Q3 2023, it will be in a position to calculate and assess the aforementioned KPIs once comparative figures and performance benchmarks will become available in subsequent years.
This report was approved by the board on 24 July 2023 and signed on its behalf.
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GLOBAL MARKETS GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The directors present their report and the financial statements for the year ended 31 March 2023.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation, amounted to £375,244 (2022 - loss £21,552).
The directors who served during the year were:
The Company is aiming to reactivate and grow its operations in Q3 2023, whilst discussing the sale of its business with a potential acquirer.
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GLOBAL MARKETS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
The Company established new technology, trading platform and liquidity provision arrangements in Q2 2023 and is aiming to reactivate and grow its operations in Q3 2023; in parallel it is in discussions for the sale of its business to a potential acquirer.
The auditors, Calders (1883) LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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GLOBAL MARKETS GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GLOBAL MARKETS GROUP LIMITED
We have audited the financial statements of Global Markets Group Limited (the 'Company') for the year ended 31 March 2023, which comprise the Statement of income and retained earnings, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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GLOBAL MARKETS GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GLOBAL MARKETS GROUP LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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GLOBAL MARKETS GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GLOBAL MARKETS GROUP LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. The following laws and regulations were identified as being of significance to the entity: •Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation. With regards to laws and regulations relating to the operating aspects of the company, these were discussed with management and were not considered fundamental to the operating of the business therefore should not have a material impact on the financial statements. Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud. No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
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GLOBAL MARKETS GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GLOBAL MARKETS GROUP LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
and Statutory Auditors
30 Orange Street
WC2H 7HF
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GLOBAL MARKETS GROUP LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2023
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GLOBAL MARKETS GROUP LIMITED
REGISTERED NUMBER: 09493910
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 15 to 20 form part of these financial statements.
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GLOBAL MARKETS GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
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GLOBAL MARKETS GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
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GLOBAL MARKETS GROUP LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
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GLOBAL MARKETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Global Markets Group Limited is a private limited company incorporated in England and Wales, registration number 09493910. The registered office is 15 Bishopsgate London, EC2N 3AR.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
Functional and presentation currency
Transactions and balances
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GLOBAL MARKETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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GLOBAL MARKETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
The estimates and underlying assumptions are reviewed on an continuing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised. There were no key judgments or estimation uncertainties in the application of the company's accounting policies during the year.
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GLOBAL MARKETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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GLOBAL MARKETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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GLOBAL MARKETS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Other reserves
The comparative figures are unaudited.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £1,871 (2022 - £nil) . Contributions totalling £770 (2022 - £nil) were payable to the fund at the reporting date and are included in creditors.
Citypark Investments Limited, a company incorporated in the UK is the immediate and ultimate parent company owning 90.01% of the share capital. The ultimate controlling party is Mr Shi Lu.
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