Annual Disclosure Report

for the Financial Year ended 31 December 2025

Introduction

This report is prepared in accordance with Part 8 of the Financial Services (Investment Firms) (Prudential Requirements) Regulations 2021, as applicable in Gibraltar, and sets out the public prudential disclosures of Quay Financials (Gibraltar) Limited (the “Firm”) for the financial year ended 31 December 2025.

The Firm holds a Category 2A investment firm licence and is classified as a Non-Small Non-Interconnected (“Non-SNI”) Class 2 investment firm. It provides execution-only and brokerage services to professional clients and eligible counterparties. The Firm has no retail clients. Although its permission set includes dealing on own account, that permission is not exercised in practice.

Section 1: Disclosure Basis and Reference Date

This disclosure relates to the financial year ended 31 December 2025. Financial information is based on the Firm’s audited financial statements for that year, approved and signed on 30 April 2026. Prudential information is consistent with the Firm’s 2026 Internal Capital Adequacy and Risk Assessment (“ICARA”), with a process reference date of 31 December 2025 and Board approval dated 28 May 2026.

Section 2: Risk Management Objectives and Policies

Overall risk statement

The Board-approved ICARA records a low risk appetite consistent with the Firm’s execution-only brokerage model, professional and eligible counterparty client base, limited balance-sheet risk and absence of proprietary trading in practice. The Board seeks to maintain sufficient capital and liquidity above regulatory requirements and internal thresholds while monitoring operational, counterparty, client asset, concentration, technology and conduct risks on an ongoing basis.

The principal strategies and processes used to manage the Firm’s risks include:

  1. Capital risk: own funds are monitored against the permanent minimum capital requirement, fixed overheads requirement, K-factor requirement and the Firm’s ICARA own funds threshold. The ICARA applies a 10% buffer over the binding own funds requirement.
  2. Liquidity risk: cash and liquid asset positions are monitored against the basic liquid asset requirement and the ICARA liquid assets threshold. The Firm maintains material liquidity headroom and performs regular reconciliations of relevant bank and client accounts.
  3. Credit and counterparty risk: the Firm uses regulated banking, clearing and custody counterparties and monitors material exposures and concentrations.
  4. Client money and asset risk: where client money and assets are held in connection with the Global Brokerage Service, they are held on a segregated basis and subject to reconciliation and oversight controls.
  5. Operational and cyber risk: documented procedures, segregation of duties, access controls, multi-factor authentication, technology controls and periodic review are used to mitigate operational and cyber risks.
  6. Concentration risk: dependence on key clients and material service providers is monitored. Loss of key clients and failure of a prime broker or other critical third party are included in the Firm’s stress testing.
  7. Recovery and wind-down: the Firm maintains recovery actions and an orderly wind-down plan. The 2026 ICARA estimates an orderly wind-down cost of £144,209 and a three-month wind-down period.

The Firm’s quantitative risk appetite framework includes a single-client exposure limit of 20% of own funds, a monthly net loss tolerance of 2% of total capital, a liquidity buffer of at least 20% above the liquid assets threshold requirement and an own funds threshold set at 110% of the applicable own funds requirement.

Section 3: Governance

The Firm’s management body comprises:

The Board meets at least quarterly, with additional meetings as required. It is responsible for approving the ICARA annually and after any material change to the Firm’s business or risk profile, and for reviewing risk appetite, capital and liquidity adequacy, stress testing, recovery planning and wind-down arrangements.

Directorships held by members of the management body

Member of management bodyNumber of directorships
Darren Edward le Feuvre10
Michael Bertges2

Diversity policy

The Firm is committed to maintaining a management body with an appropriate balance of skills, knowledge, experience and diversity. In considering appointments and succession, the Firm takes account of gender, age, cultural background, professional experience, competence and independence of thought. Given the small size of the management body, the Firm applies a qualitative objective of maintaining complementary expertise appropriate to its brokerage, investment, finance and risk responsibilities rather than a numerical quota. That objective was met during FY2025 through the composition and responsibilities of the two directors.

Risk committee

The Firm has not established a separate risk committee. Risk oversight is carried out directly by the Board. Accordingly, there were no separate risk committee meetings during FY2025; the Board itself meets at least quarterly and considers risk matters as part of its governance responsibilities.

Section 4: Own Funds and Own Funds Requirements

Own funds reconciliation to the audited balance sheet

The Firm’s regulatory own funds at 31 December 2025 consist entirely of Common Equity Tier 1 (“CET1”) capital. There were no Additional Tier 1 or Tier 2 instruments and no regulatory filters or deductions at the reporting date.

Audited shareholders’ funds / regulatory reconciliation£
Share capital1,462,804
Share premium926,672
Profit and loss reserve(1,551,058)
Audited net assets / CET1 own funds838,418
AT1 own funds0
T2 own funds0
Regulatory filters and deductions0
Total regulatory own funds838,418

The original MIF001 submitted for 31 December 2025 reported CET1 of approximately £835,000 because the unaudited FY2025 profit of £3,433 was excluded. Following audit, the prudential position used in the 2026 ICARA and this disclosure includes the verified FY2025 result and reports CET1 of £838,418.

Own funds requirements

Requirement at 31 December 2025£000
Permanent minimum capital requirement (“PMR”)745
Fixed overheads requirement (“FOR”)80
K-factor requirement (“KFR”)25
Binding own funds requirement, being the highest of PMR, FOR and KFR745
Additional own funds for ongoing risks identified through ICARA0
ICARA own funds threshold requirement820
Headroom over ICARA own funds threshold18

The transitional PMR applicable at 31 December 2025 was £745,000. From 1 January 2026 the PMR increased to £750,000 and the Firm’s 110% own funds threshold increased to £825,000.

K-factor requirement by risk category

K-factor risk categoryComponents£000
Risk-to-Client (“RtC”)K-CMH £4k; K-ASA £1k; K-COH £3k8
Risk-to-Market (“RtM”)K-NPR £14k; K-CMG £014
Risk-to-Firm (“RtF”)K-DTF £3k; K-TCD £0; K-CON £03
Total K-factor requirement25

Internal capital adequacy approach

The Firm assesses the adequacy of its own funds through its ICARA, incorporating its business model, risk register, risk appetite, stress and scenario testing, recovery options and wind-down analysis. The 2026 ICARA concluded that no additional own funds were required for risks from ongoing activities and that the binding regulatory own funds requirement remained the PMR. The Gibraltar Financial Services Commission had not specified an additional own funds requirement as at the ICARA approval date.

Liquidity

Liquidity position at 31 December 2025£000
Core liquid assets held903
Non-core liquid assets, post-haircut0
Basic liquid asset requirement27
Liquid assets threshold requirement160
Liquidity headroom over threshold743

The ICARA identified no additional liquid assets requirement and the Gibraltar Financial Services Commission had not specified an additional liquid assets requirement as at the ICARA approval date.

Section 5: Remuneration Policy and Practices

The Firm’s remuneration arrangements are designed to be proportionate to its size, business model and low risk appetite. The Board oversees remuneration policy and seeks to ensure that remuneration is consistent with sound and effective risk management, does not encourage excessive risk-taking, is gender neutral and supports the Firm’s long-term interests and regulatory obligations.

The Firm does not operate a formal incentive scheme. Fixed remuneration reflects role and responsibility. The only variable remuneration paid during FY2025 was a discretionary performance bonus, determined after taking account of the Firm’s financial performance and paid only when the Firm was profitable. Control-function remuneration is structured to support independence from the business activities being overseen.

Aggregate remuneration for material risk staff

Employee category Beneficiaries Fixed remuneration £ Variable remuneration £ Total remuneration £ Variable / fixed Deferred £
Executive Management249,600.000.0049,600.000.00%0.00
Risk Control Executive120,400.000.0020,400.000.00%0.00
Other Material Risk Staff160,000.0055,068.94115,068.9491.78%0.00
Total4130,000.0055,068.94185,068.9442.36%0.00

For this disclosure, Executive Management comprises the two directors; the Risk Control Executive category comprises the Head of Compliance and MLRO; and Other Material Risk Staff comprises the Head of Trading.

Variable remuneration and deferral information

FY2025 variable remuneration information£
Variable remuneration awarded for FY202555,068.94
Paid / payable upfront55,068.94
Deferred variable remuneration0.00
Outstanding deferred remuneration from prior periods0.00
Deferred remuneration vesting during FY20250.00
Guaranteed variable remuneration0.00
Severance payments0.00

The variable remuneration comprised discretionary bonus remuneration; no variable remuneration was deferred or delivered in shares, share-linked instruments or other non-cash instruments.

Proportionality exemption

The Firm meets the firm-level proportionality criteria in regulation 85(6) of the Financial Services (Investment Firms) (Prudential Requirements) Regulations 2021. Accordingly, the remuneration requirements concerning payment in instruments, deferral and discretionary pension benefits referred to in that regulation do not apply to the Firm. The Firm is also not required to establish a separate remuneration committee under regulation 86; remuneration oversight is performed by the Board.

Section 6: Investment Policy and ESG Disclosure

The investment policy disclosure in regulation 108 and the ESG disclosure in regulation 109 apply to investment firms that do not meet the criteria in regulation 85(6). As the Firm meets those criteria, those disclosure requirements are not applicable to the Firm for FY2025.

Section 7: Business and Financial Context

Year ended 31 December 2025£
Revenue1,621,892
Profit before taxation3,433
Net assets838,418
Cash at bank902,312

The Firm operates two fee and commission-based business lines: the Trinity Broking give-up brokerage activity and the Global Brokerage Service. Profits are retained to support the Firm’s capital base and no dividend distribution is planned for the foreseeable future.

Section 8: Further Information

Additional information concerning this disclosure may be requested by email at info@quayfinancials.com.

Source documents: Quay Financials (Gibraltar) Limited audited financial statements for the year ended 31 December 2025, signed 30 April 2026; the Firm’s 2026 ICARA, process reference date 31 December 2025, Board approved 28 May 2026; and the Firm’s FY2025 remuneration records used to prepare this disclosure.