AJ Bell (AJB) 2022年年度報告「LSE」.pdf

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1、AJ Bell plcAnnual Report and Financial Statements 30 September 2022AJ Bell plcAnnual Report and Financial Statements 30 September 2022We make investing easierTotal customers440,589+15%Assets under administration(AUA)169.2bn-5%Revenue163.8m+12%Profit before tax(PBT)58.4m+6%“We are well placed to deli

2、ver long-term growth.”Michael Summersgill Chief Executive OfficerDiluted earnings per share11.35p+6%Total ordinary dividend7.37p+6%MSCI ESG ratingAACharitable donations299,000Top 25 Best Companies to Work For 2022People and cultureOur people are at the heart of our continued growth and success.We ta

3、ke pride in their career development,and we support and empower them to drive the business forward.For more see pages 39 to 43A clear strategyOur strategy remains focused on providing high-quality platform propositions to meet the evolving needs of investors,emphasising user experience,excellent ser

4、vice,and value for money.For more see pages 10 to 15Supporting our communitiesWe ensure that our communities share in our business success and the passion of our people.For more see pages 44 and 45Market overviewThe long-term structural drivers of growth in the UK investment platform market remain s

5、trong with around 2 trillion of our estimated 3 trillion target addressable market not yet on a platform.For more see pages 16 to 19Welcome to our Annual Report 2022AJ Bell is one of the UKs largest and best-regarded investment platforms.Over 440,000 customers currently trust us with their investmen

6、ts,and by continuously striving to make investing easier,we aim to help even more people take control of their financial futures.From our offices in Manchester,London and Bristol,we offer an award-winning range of solutions that caters for everyone,from professional financial advisers,to DIY investo

7、rs with little to no experience.Find out how we make investing easier and more at ajbell.co.ukStrategic report01 Our purpose04 At a glance06 Chairs statement10 Chief Executive Officers review16 Market overview20 Business model22 Strategy in action24 Key performance indicators26 Stakeholder engagemen

8、t28Section 172 statement32 Responsible business54 Financial review58 Risk management62 Principal risks and uncertainties67Viability statementGovernance70Chairs introduction72 Board of directors76 Executive Committee78 Corporate Governance report86 Nomination Committee report90 Audit Committee report

9、96 Risk and Compliance Committee report100 Directors Remuneration report126 Directors report129 Statement of Directors responsibilitiesFinancial statements132 Independent auditors report to the members of AJ Bell plc139 Consolidated income statement140 Consolidated statement of financial position141

10、 Consolidated statement of changes in equity142 Consolidated statement of cash flows143 Notes to the consolidated financial statements 169 Company statement of financial position170 Company statement of changes in equity171 Notes to the Company financial statementsOther information176 Consolidated u

11、naudited five-year summary177 Glossary178 Definitions179 Company information1.See pages 24 and 25 for definition of Alternative Performance Measures.Strategic report Governance Financial statements Other informationAJ Bell plc Annual Report and Financial Statements 2022 01How we do itWhat we doOur p

12、urposeAdvised market:See page 16Our guiding principlesOur strategic drivers:See pages 22 and 23D2C market:See page 16Serving the needs of our customersAJ Bell is one of the UKs largest and best-regarded investment platforms.Whether through a financial adviser,or managing your investments yourself,we

13、 offer a range of products to help you achieve your financial goals.Creating sustainable valueWe make investing easierOur company is built on a set of guiding principles that define the way we do business.At the heart of our business is a clear and succinct purpose which drives everything we do:We h

14、elp people to investWe want to make investing as easy as possible for our customers to enable them to take control of their finances and realise their financial goals.Responsible propositionsOffering products and services that are aligned with our purpose.Responsible employerDeveloping and supportin

15、g our people to help them achieve their potential.Supporting local communitiesPlaying a positive and supporting role in our local communities.Environmental awarenessMinimising our impact on the environment.See pages 36 to 38See pages 39 to 43See pages 44 to 45See pages 46 to 53Sustainable growthExce

16、llent customer experienceScalable technology solutionsFinancial security and regulatory complianceStrong employer brand and cultureWe want to provide our customers with the easiest investment platform to enable them to take control of their finances and realise their financial goals.StraightforwardW

17、e make investing easy and accessibleIntelligentWe know our stuffPersonalWe are human.Not robotsPrincipledWe do the right thingFocusedWe give customers what they need.Not what they dontEnergeticWe never stand stillAge:56 years oldMission:To enjoy a comfortable retirementGill,who has been self-employe

18、d for the last 31 years,has worked in many areas including London and Belgium.She has experience in investor relations so is familiar with financial services and holds a SIPP and ISA with AJ Bell.She holds a mixture of stocks and funds in her portfolio and prioritises simplicity when investing to ma

19、ke her journey as smooth and easy as possible.We make investing easierHelping invest for her retirementSee more at ajbell.co.ukHow we help Gill to investHigh-quality serviceGill believes that our customer service sets us out from the rest,with our uncomplicated approach to helping customers navigate

20、 their investing journey.Gill loves that she is never kept waiting on the phone,and is always supported by one of our knowledgeable Customer Services Team to quickly resolve any queries she might have.Investment ideasWe have helped Gill to start achieving her investing mission by providing informati

21、ve content and investment ideas.Gill uses our favourite funds list;chosen by our investment specialists,which she believes have made her more confident in her own investing decisions.In addition,she looks forward to reading our weekly Shares magazine and enjoys listening to our Money&Markets podcast

22、s,which provide her with information she finds accessible and thought provoking.Through AJ Bells easy-to-use platform,Gill has found her experience to be one of low cost,but high quality,and she trusts that we will continue to support her in her investing journey in the long term.Gill has even recom

23、mended us to her husband who now also holds his pension with AJ Bell!Gill is a real AJ Bell customer sharing her honest opinions.Strategic report Governance Financial statements Other information02AJ Bell plc Annual Report and Financial Statements 2022AJ Bell plc Annual Report and Financial Statemen

24、ts 202203At a glanceWe make investing easierWe are on a mission to make investing easier.As one of the UKs largest and best-regarded investment platforms,we help our customers to realise their financial goals,whether directly or with the help of a financial adviser.Listed company FTSE 250Customers44

25、0,589Assets under administration69.2bnEmployees1,173ManchesterLondonBristolOffice locationsOur marketOur propositionsAdvisedD2COther products and servicesTotal Advised Customers145,371+15%2021:126,920AUA44.8bn-2%2021:45.8bnAJ Bell Investcentre is an investment platform proposition for regulated fina

26、ncial advisers and wealth managers providing a suite of products,services,investment solutions and online tools to help manage their retail customers portfolios.Touch by AJ Bell is a streamlined,app-based investment platform proposition,offering advisers a digital service model that expands the rang

27、e of clients they can service.Total D2C Customers280,281+16%2021:241,045AUA19.3bn-1%2021:19.5bnAJ Bell is an investment platform proposition for execution-only retail customers which includes investment solutions through our in-house funds and ready-made portfolios,and guidance via the AJ Bell Favou

28、rite funds list.It also offers a cash savings solution.Dodl by AJ Bell is an easy-to-use,no-nonsense investment app.The platform proposition has a streamlined range of investments available with a simplified charging structure.AJ Bell InvestmentsProvides simple,transparent,low-cost investment manage

29、ment solutions through advisers and direct to customers.AJ Bell PlatinumProvides adviser-led and D2C pension administration services to customers with bespoke SIPP and SSAS accounts.AJ Bell MediaPublishes Shares magazine and other proprietary investment content to support our platform propositions.A

30、J Bell SecuritiesProvides flexible,low-cost,tailored wealth management solutions.Our awards1tnCurrently held on platforms2tnOff-platformTotal addressable market 3tn“A significant opportunity”Full serviceSimplifiedWe operate in a fast-growing investment platform market.The long-term structural driver

31、s of market growth are strong,with around two-thirds of our estimated 3 trillion target addressable market not yet on a platform.See Market overview on pages 16 to 192012201520182021983716473308A fast-growing platform marketbn+14%CAGR Strategic report Governance Financial statements Other informatio

32、n04AJ Bell plc Annual Report and Financial Statements 2022AJ Bell plc Annual Report and Financial Statements 2022 05Chairs statementA clear purposeAdditional Board focus areasDear shareholderI am pleased to be writing to you as Chair,having joined the business in July last year before taking over as

33、 Chair at the AGM in January.I have spent a lot of time getting to know many people across the business,which has been wonderful.I have been greatly impressed by the calibre of our employees and the collegiate culture.I have also had the pleasure of engaging with some of our shareholders and other k

34、ey stakeholders,discussing both AJ Bells business and the wider platform market.It has been insightful to hear the feedback and to understand what each stakeholder group believes our priorities should be going forward.During the year the Boards long-established succession plan came to fruition with

35、Andy stepping down on 30 September 2022 and our Deputy CEO,Michael Summersgill,being appointed to the role.My priority as Chair has been to ensure a smooth transition of responsibilities and this has been achieved.As co-founder and CEO,Andy has been the heart and soul of AJ Bell for 27 years,shaping

36、 it into the successful listed business it is today.On behalf of the Board I would like to thank Andy for the incredible legacy he has created and strong culture that we shall build on going forward.Uncertainties in the wider economy and the increasing pressures from the rising cost of living are br

37、inging many challenges to our customers,our people and our wider stakeholders.As a Board we are particularly mindful of this and so our focus continues to be on the wellbeing of our staff,while maintaining a high-quality,value for money service to our customers and delivering positive outcomes for a

38、ll our stakeholders.OverviewI am pleased to report that we have delivered a strong financial performance during the year with PBT of 58.4 million.Over the past 12 months customer numbers increased by 57,835 to 440,589 and we delivered 3.8 billion of net inflows of AUA,ending the year with total AUA

39、of 69.2 billion.This strong performance demonstrates the resilience of our business model during a turbulent CultureAJ Bell has always prided itself on a strong collegiate culture;staff recruited over the pandemic have obviously not had as many opportunities to benefit from this.Particular efforts a

40、re being made to ensure that this is a focus for managers as well as the Board.Diversity and inclusionHaving founded the 30%Club and now Chair of the Diversity Project,this is clearly something that matters greatly to me.I have seen so often the benefits yielded by improving diversity of thought and

41、 creating an inclusive workplace.So,it has been great to see us push diversity and inclusion higher onto the Boards agenda this year.We have established a framework within which we can improve the current situation to ensure our talent is consistent with AJ Bells strategic ambitions.We are now also

42、monitoring the data to enable us to measure progress.Our D&I framework encompasses both demographic and cognitive diversity;while the initial focus has been on senior management and the talent pipeline,the commitment is there to widen this to the broader workforce.Money Matters helping women investT

43、here is not a single good reason why women should have less money than men.Despite that,the fact remains that on average women have less than half the levels of savings and investments than men.That gender investment gap is one of the biggest challenges facing our society today.AJ Bell is determined

44、 to help solve this.I am proud to be championing AJ Bell Money Matters,which is designed to give women the information and inspiration they need to become more confident investors.It aims to get women talking about money and investing.We have a range of articles on our website,a dedicated podcast se

45、ries,a regular newsletter,webinars and in-person live events.Consumer DutyOver the long term,the Consumer Duty should improve trust in financial services,which in turn should lead to more people making better decisions about their short,medium and long-term savings and investments.AJ Bell already pl

46、aces good consumer outcomes at the heart of everything we do,with good value products,simple communications and strong processes to support customers front-and-centre.We recognise however,the step change that the FCA is expecting of firms to proactively evidence and review how they deliver good cons

47、umer outcomes.As a Board we are actively engaged in the Consumer Duty and will be overseeing the delivery of the implementation plan ahead of the regulatory deadline of July 2023.Chair successionAs announced on 27 September,I advised the Board that I will stand down from the Board once a suitable re

48、placement as Chair is found.Work has already commenced on the formal recruitment process,which is being led by Evelyn Bourke,the Senior Independent Director.My focus will be to ensure an efficient handover of responsibilities to the successor in due course.“I have long admired AJ Bell and its commit

49、ment to helping people to invest.At AJ Bell we are a purpose-driven organisation who put our customers at the heart of everything we do.”Baroness Helena Morrissey DBE Chairyear and continued uncertainties around the UK economy.The Financial Review contains further information on this years performan

50、ce on pages 54 to 57.Our governance structure and cohesive culture provide a solid framework for achieving our long-term strategic goals and the Board remains focused on delivering AJ Bells purpose which is simply to help people to invest.Governance and cultureThe Board remains focused on applying h

51、igh standards of corporate governance and ensuring these principles are embedded into our culture.We believe effective stakeholder engagement is key to the long-term success of our business and we aim to proactively engage with our key stakeholders and understand what is most important to them.We we

52、lcomed the opportunity to engage with our staff and shareholders in person again this year as COVID restrictions lifted,providing invaluable insight into the operation and culture of our business,particularly for those Board members who joined us during 2021.I was delighted to be appointed as the no

53、minated employee engagement director in January this year,which has given me an opportunity to refresh the Employee Voice Forum(EVF),increasing the frequency of our gatherings and making it more inclusive.We have been particularly mindful of the impact of cost-of-living pressures on our people and t

54、he wider implications of a challenging labour market during 2022.With this in mind we have made a significant investment in pay and benefits from 1 October 2022 and believe that the needs of our workforce as a whole have been taken into account through a combination of higher pay rises,enhanced bene

55、fits,increased bonus pool and a free share scheme for all employees.To ensure we considered those areas most important to our staff for our benefits review,we sought feedback through a staff survey which highlighted that benefits associated with health and wellbeing,saving for the future and share o

56、wnership were considered most important.Consideration of our wider stakeholders in some of our key decisions in the year are outlined in our Section 172 statement on pages 28 and 29.Total ordinary dividend7.37p per share(FY21:6.96p per share)Strategic report Governance Financial statements Other inf

57、ormation06AJ Bell plc Annual Report and Financial Statements 2022AJ Bell plc Annual Report and Financial Statements 2022 07Named in the UKs top 25 Best Large Companies to Work ForA look back at Andys key achievementsLaunch of Sippdeal the UKs first online SIPP for execution-only investors2000Launch

58、of Sippcentre a low-cost SIPP for financial advisers2002Onboarded first institutional investor2005Acquisition of Lawshare Limited,rebranded to AJ Bell Securities2007ISA and Dealing accounts launched on propositions,and Custody Solutions service for wealth managers2011Acquisition of MSM Media Limited

59、,rebranded to AJ Bell Media2012Sippdeal and Sippcentre rebranded to AJ Bell Youinvest and AJ Bell Investcentre2013Acquisition of Mansard Capital LLP and Indexx Markets Limited,rebranded to AJ Bell Investments2016Launched first range of Funds and relocated to new head office at Exchange Quay2017Liste

60、d on the London Stock Exchange2018Acquisition of Adalpha,rebranded to Touch,developing a mobile focused proposition for advisers2021Launch of Dodl,a D2C app-only simplified investment proposition 2022The Board continues to provide strong support and appropriate challenge to the executive team to ens

61、ure the Groups strategy is appropriate,achievable and ultimately delivered.During the year the Board worked closely with Michael Summersgill,who led a key project to replace the current Executive Management Board(EMB)structure with an enlarged Executive Committee(ExCo)and sub-committees.The new ExCo

62、 structure will provide additional executive level oversight and support the ongoing growth of the business.Full details of the work of the Board,its Committees and the revised executive structures are set out in the Corporate Governance report from pages 78 to 85.Responsible business We have made g

63、ood progress during the year to further embed our environmental,social and governance(ESG)framework into our wider business strategy.Our senior management team has been busy driving forward a number of key objectives around diversity and inclusion(D&I),a new charitable framework and our paperless am

64、bition.In addition,we have also looked carefully at our own climate impact and have produced our first Task Force on Climate-Related Financial Disclosures(TCFD)report.Peter Birch became the lead Executive for ESG,following his appointment as Chief Financial Officer(CFO),taking the reins from Michael

65、 Summersgill.Particular focus has been given to establishing a D&I framework this year,taking into account both demographic and cognitive diversity,which the Board approved in July.Our primary focus has been on senior management and the talent pipeline,although we are also looking more broadly at th

66、e wider workforce.I am confident that the work this year has formed a solid basis for the Groups continued development in this area.I am also particularly pleased to report the formation of a Non-Executive Director forum during the year to provide further oversight and challenge of specific ESG init

67、iatives.Our first meeting in July focused on a deep dive into the D&I framework,reflecting its importance to the Board.Further details on our ESG-related activities can be found in our Responsible Business section on pages 32 to 53.Board changes and successionThis has been a year of change for the B

68、oard,welcoming new Executive members and overseeing succession plans.I succeeded Les Platts as Chair at the 2022 AGM.Les provided excellent stewardship of the Group during his tenure and the Board wishes him well for the future.Andy stepped down as CEO from 30 September 2022,succeeded by Michael Sum

69、mersgill,our Deputy CEO.As a Board we would like to formally welcome Michael in his new role and look forward to supporting him in driving the growth of the business.As a Board we were keen for Andy to remain involved in the business in a Non-Executive capacity to ensure the business continues to be

70、nefit from his deep experience of AJ Bell and the wider investment platform market.Although we were unable to agree our preferred role for Andy with the Financial Conduct Authority(FCA),we are delighted that he will continue to support the business in a consultancy role,focusing on building the AJ B

71、ell brand and assisting AJ Bells campaigning on behalf of retail investors and financial advisers.Following the conclusion of our dialogue with the FCA,I decided with great regret that I should step down from the Board once a successor is found,so a new Chair can take the Board forward.I will contin

72、ue to work with the business as a consultant,focusing on our Money Matters initiative to encourage more women to consider investing and to also further the Companys progress on diversity and inclusion.Laura Carstensen also stepped down from the Board at the 2022 AGM and we thank her for her valuable

73、 contribution to the Group during her tenure.As part of the Boards succession plans,Evelyn Bourke was appointed Senior Independent Director(SID)and Margaret Hassall Chair of the Remuneration Committee.As previously announced,we welcomed Roger Stott to the Board on 1 October 2021 as Chief Operating O

74、fficer(COO),and more recently,Peter Birch as CFO from 1 July 2022.The Board has overseen an orderly transition for the role of CFO from Michael Summersgill who was appointed Deputy CEO at the start of the year.We continually monitor our Board composition and effectiveness through the work of the Nom

75、ination Committee to ensure we have the right skillset and breadth of experience with which to function as an effective Board.Following the commencement of the recruitment of a new Chair,the Board has agreed to pause the search for two new Non-Executive Directors until that process is completed.Both

76、 the Board and I are extremely mindful of the importance of having a diverse range of skills,experience and perspective around the Board table and this will be uppermost in our minds throughout the recruitment process.Further details on Board changes can be found in the Nomination Committee report o

77、n pages 86 to 89.DividendIn line with our commitment to a progressive dividend policy,the Board is pleased to announce a final ordinary dividend of 4.59p per share,reflecting the financial strength of the business and strong capital position.The final ordinary dividend will be paid,subject to shareh

78、older approval,at our AGM on 8 February 2023,to shareholders on the register at the close of business on 20 January 2023.This brings the total ordinary dividend for the financial year to 7.37p per share,representing an increase(excluding the special dividend in the prior year)of 6%on the previous ye

79、ar.Chairs statementBuilding on Andys legacy as we look aheadAndys achievements in building AJ Bell cannot be overstated.From SIPP-only offering in 1995 to todays dual-channel FTSE 250 listed platform business,Andy has been the driving force.He has of course also created a great team to take the busi

80、ness forward,motivated by the same purpose;to help people to invest.While the difficult economic outlook may lessen the immediate opportunity for growth,over the long term,it is clear that the fundamental drivers of an expanding addressable market remain firmly in place.With a focus on ease of use a

81、nd value for money,and having also invested in our simplified propositions,Dodl and Touch,AJ Bell is well-positioned to both gain market share and to capitalise on an expanding universe of investors,both direct and advised.AJ Bell is financially strong with a well-capitalised and highly cash-generat

82、ive business model,and the Board remains confident in the long-term prospects of the business.Baroness Helena Morrissey DBEChair30 November 2022Andy Bell and Nicholas Littlefair set up AJ Bell1995 Strategic report Governance Financial statements Other information08AJ Bell plc Annual Report and Finan

83、cial Statements 2022AJ Bell plc Annual Report and Financial Statements 2022 09Chief Executive Officers reviewCreating long-term valueOur strategy remains focused on providing high-quality platform products to meet the evolving needs of investors,emphasising user experience,excellent service,and valu

84、e for money.Our full-service D2C platform,now called AJ Bell(formerly Youinvest),and our full-service advised platform Investcentre,have been established for many years and continue to attract thousands of new customers every year.They are complemented by our simplified platform products,Dodl(which

85、was brought to the market in April 2022),and Touch(which is scheduled to launch in 2023),furthering our growth potential by targeting a broader range of customers.Integrated throughout our platform products is our range of in-house investment solutions.These low-cost funds and managed portfolios hav

86、e delivered consistently strong performance and are well positioned to continue their strong growth.In 2022,we achieved another year of strong customer growth in challenging market conditions.The macroeconomic outlook significantly changed during the year,with UK inflation at levels not seen for 40

87、years,interest rates rising to their highest level in 13 years and global asset values falling.In the short term this has reduced both the appetite,and funds available,for investing,however our dual-channel business model has a proven history of delivering growth under different macroeconomic condit

88、ions,as demonstrated again this year.Our business model proved its strengthOur platform business delivered net AUA inflows of 5.8 billion over the year,once again demonstrating the strength of our dual-channel model,with both advised and D2C channels performing very well.Advised platform inflows wer

89、e strong throughout the year as advisers helped their clients to navigate significant market volatility,whilst our D2C platform also delivered substantial inflows and remained resilient during the traditionally quieter summer months,with 0.3 billion of net inflows in the final quarter despite a slow

90、down in new contributions from customers impacted by the rising cost of living.“The foundations are firmly in place for us to deliver long-term growth in both the advised and D2C segments of the platform market.My focus is on continuing to evolve our platform products and service capabilities to mee

91、t the ever-changing needs of advisers and customers.”Michael SummersgillCEOPlatform customers425,65216%OverviewIt is a huge privilege to take on the role of CEO from Andy,having worked alongside him on the Board since 2011.During that time,we have built the Company into one of the largest investment

92、 platforms in the UK,establishing a track record of sustained organic growth and high-quality service to our customers.Helena has covered Andys many achievements in his time as CEO,so I will not repeat them here,but I will take the opportunity to put on record my thanks for the faith he has shown in

93、 me and the support he has given me over the years.I believe we are well placed to maintain our long-term growth and capitalise on the opportunities in a fast-growing platform market.The addressable market is estimated at 3 trillion,with two-thirds currently held off-platform.Each year a significant

94、 proportion of our new business comes from assets already in the financial system,where customers transfer their assets from adjacent markets to access the increased flexibility,investment choice and value that a platform can offer.I expect this trend will continue and our dual-channel offering puts

95、 us in a unique position to take advantage,maximising our growth opportunity by serving both the advised and D2C segments of the market.Q&A with our new CEOAs incoming CEO,what is your focus on?I believe that the foundations are firmly in place for us to deliver long-term growth in both the advised

96、and D2C markets.My focus is on continuing to develop our platform products and service capabilities to meet the ever-changing needs of advisers and customers,ensuring we deliver on the significant market opportunity.In the short term,I have also focused on increasing our brand awareness and enhancin

97、g our employee offer at a time when the cost of living is rising.How are you supporting staff through the cost-of-living squeeze?We conducted a full review of our pay and benefits offering this year and I was pleased to reward our team for their ongoing commitment by introducing several changes with

98、 a focus on protecting them from the current inflationary environment,supporting their wellbeing and helping them to strengthen their long-term finances.These changes,effective from 1 October 2022,represent an annualised increase of over 10%in total employee costs.The element that was most important

99、 to me was the introduction of a new share award for all employees.Why have you introduced a new free share award?Employee share ownership is ingrained in our culture with over 50%of our workforce having share interests in the Company.I am passionate about ensuring that all employees feel a sense of

100、 ownership and continue to share in the success of the business,so one of my first acts as CEO has been to implement an annual free share award worth 2,000 per year for all employees outside of the senior management team.What changes are you making to the brand?Following the year end,we retired the

101、AJ Bell Youinvest sub-brand with our full-service D2C platform now rebranded to AJ Bell.This will improve the effectiveness of our direct marketing activity,by simplifying the journey for new customers leading to better conversion rates.In addition to this,we are evolving our brand strategy with a f

102、ocus on communicating how we can help people to feel good investing.Why are you making these changes?When customers entering the market are choosing a platform to invest with,less than half research more than one provider.For most new customers,trust and brand awareness are key drivers of their deci

103、sion.With over 27 years of experience,we have built a trusted brand through our high-quality service and easy-to-use,award-winning platform products.We have strong brand affinity but relatively low brand awareness.Given the lifetime value of a customer and significant platform market opportunity,we

104、are increasing investment in our brand to deliver long-term growth.These brand changes simplify our brand architecture and position us to maximise the returns on this investment,ensuring we capture more of the new customers coming into the market.QQQQQTestament to our high-quality products,we achiev

105、ed organic growth in platform customer numbers of 57,687,an increase of 16%in the year.Our excellent customer service levels also ensured our customer retention rates remained high,increasing to 95.5%(FY21:95.0%).Revenue margin on AUA climbed to 22.6bps(FY21:22.2bps)as our diversified revenue stream

106、s once again ensured we are well placed to succeed in different macroeconomic environments.We delivered a 31%increase in recurring ad-valorem revenue due to higher average AUA in the year and the rise in the UK base rate leading to increased interest income,providing protection from inflationary pre

107、ssures in our cost base.We continue to scale the business effectively,which in combination with increasing interest rates,enabled us to reduce our charges(representing annualised customer savings of approximately 5million),and increase the interest rates we pay to customers on cash held on the platf

108、orm.Alongside delivering value for our customers,the operational efficiency of our business model means we also continue to deliver strong returns for shareholders,reflected in our record PBT of 58.4 million whilst also investing in our brand,technology,people and products to ensure we take advantag

109、e of the significant opportunities presented by the platform market.Our strong financial performance is reflected in the 6%increase in basic earnings per share to 11.39p(FY21:10.71p)with our well-capitalised,highly cash-generative business model meaning that the Board has yet again recommended an in

110、creased ordinary dividend for the 18th successive year.Platform AUA64.1 bn-2%Strategic report Governance Financial statements Other information10AJ Bell plc Annual Report and Financial Statements 2022AJ Bell plc Annual Report and Financial Statements 2022 11Chief Executive Officers reviewAdvisedThe

111、advised market has remained resilient in the face of current market headwinds,and the strength of our Investcentre platform has delivered growth in customer numbers of 18,451 to 145,371(FY21:126,920),an increase of 15%.Strong net AUA inflows of 3.3billion were offset by 4.3 billion of adverse market

112、 movements,resulting in closing AUA of 44.8 billion(FY21:45.8 billion).During the year the FTSE All-Share Index fell by 7%,whilst the FTSE 250 Index fell by 25%,reflecting the weakened markets caused by high inflation and geopolitical uncertainty.It was pleasing to be recognised as the Best Platform

113、,Best Retirement Provider and Provider of the Year for the second consecutive year at the 2022 Money Marketing Awards.Judged by a panel of industry experts,these awards are further evidence of the high-quality service we provide to advisers and their clients.We have continued to develop our Investce

114、ntre platform,making several enhancements with a focus on ease of use.We regularly review our charges to ensure they position us well to support advisers and their clients and were pleased to share the benefits of our scale with our customers by removing our frictional charges for establishing and t

115、ransferring SIPPs on to our platform,where the process is initiated online,whilst also removing some of our dealing charges.We continue to develop Touch ahead of its launch in 2023.Touch will further expand our offering for advisers,helping them to cater for clients looking for a digital service mod

116、el.As part of our high-quality customer service we have strong ongoing engagement with advisers,highlighting the value they see in us as a trusted partner.We host a range of events providing them with industry insights,contributing to their continuing professional development.In November 2022,we aga

117、in hosted our flagship adviser conference,Investival,with over 300 finance professionals attending.We have also continued to deliver numerous other events including Luminary and our On the Road seminars alongside monthly Off the Road webinars due to strong demand.InvestmentsOur investments business

118、is delivering on its commitment to offer a choice of simple,transparent investment solutions at a low cost.This range of investment solutions continue to be a popular choice with investors,growing strongly in the year with underlying net inflows of over 1 billion across our multi-asset funds and man

119、aged portfolio service,excluding the impact of a 0.2 billion one-off outflow.Total AUM closed at 2.8 billion(FY21:2.2 billion).Our asset allocation approach has delivered for our customers,with all our multi-asset funds outperforming their Investment Association sector average over the last one,thre

120、e and five years.It was particularly pleasing to see the resilient performance of our Cautious portfolio,protecting cautious investors through difficult market conditions.Since launching our first AJ Bell multi-asset funds in 2017 we have shared the benefits of our increasing scale with customers,re

121、ducing the Ongoing Charges Figure(OCF),by nearly half from 0.50%to 0.31%during that time.In February we also implemented a new simplified pricing structure,setting a single OCF for all of our multi-asset growth funds,making it easier for customers and advisers to understand.We are delighted to have

122、won Best Medium Sized Company at the Citywire Wealth Manager Investment Performance Awards 2022,further reflecting the strength of our investment solutions and the progress that has been made since our first funds were launched five years ago.Business updateCustomer services and technologyWe have pr

123、ovided an excellent service to our customers through a year of continued growth.This is reflected in our 4.6-star Trustpilot score,as rated by our retail customers,and our 95.5%platform customer retention rate.Our secure and scalable platform has been designed to facilitate growth and drive operatio

124、nal gearing,utilising a hybrid technology model which allows us to build adaptable,easy-to-use interfaces.Our platform is integral to our business performance and we have consistently invested in its evolution to provide great customer service.The increased spend on our technology in the year reflec

125、ts the development of our new products,Dodl and Touch,alongside further enhancing our existing technology infrastructure.Our developer modernisation journey has increased our pace of change with improvements made across security,scale and resilience.These improvements enable us to deliver change ini

126、tiatives more quickly to take advantage of our significant market opportunity.We also continued to invest in information security as part of our ongoing commitment to provide a safe,secure online experience for our customers.We have embedded the FCAs new regulatory requirements for operational resil

127、ience,effective from 31 March 2022,into our operating framework and processes.These rules are designed to ensure regulated firms are better able to prevent,adapt to,respond to,recover from and learn from operational disruption.multiple enhancements focused on ease of use.In July we started beta-test

128、ing a new pension finding service,simplifying the pension consolidation journey for our customers by providing us with some basic information,we will find their previous pensions free of charge.During the coming year,we will continue to trial and develop this service,enabling customers to combine th

129、eir pensions into their AJ Bell pension in just a few quick and simple steps.We also added new pay by bank functionality:this feature utilises open banking to direct customers to their online bank account before transferring funds via Faster Payments,arriving in their account almost instantly and in

130、 just a few clicks.Our efficient operating model and robust cost control allow us to simplify and reduce charges for our customers to ensure we continue to provide excellent value for money.We reviewed our trading model following the higher levels of dealing activity experienced during the pandemic,

131、in order to reduce the costs for customers.As a result,we were pleased to reduce our FX commission rates on 1 July,whilst also simplifying our dividend re-investment charge,reducing the cap on custody charges for funds and removing charges for in-specie transfers out.To ensure we remain an attractiv

132、e employer and reward our committed employees,we have strengthened our pay and benefits package for all employees effective from 1 October 2022.The changes focused on protecting our employees from the current inflationary environment,supporting their wellbeing and helping them to strengthen their lo

133、ng-term finances.There are additional details of the changes in our Responsible employer report on page 40,but the element that was most important to me was the new share award for all employees.For those outside of the senior management team,2,000 worth of AJ Bell plc shares will be awarded every y

134、ear from FY23.This will help to keep share ownership and the associated benefits at the heart of the business for years to come.We are committed to being an inclusive workplace and ensuring the diversity of our workforce represents the society we serve.As Helena has noted in her Chairs statement,we

135、have implemented a new D&I framework this year,considering both demographic and cognitive diversity,to measure and drive our development in this area.We recently established our new charitable framework,the AJ Bell Futures Foundation,to develop more deep-rooted,long-term partnerships in our communit

136、ies.We will work with charitable organisations to empower people to take control of their future and finances.We have committed to contribute 0.5%of our PBT each year,which will be distributed to chosen partner charities;we are delighted to have partnered with IntoUniversity and SmartWorks for FY23.

137、Our low prices position us well at a time where customers are increasingly looking for value.Dodl is a simplified investment app which we launched in April and sits alongside our existing D2C platform product.Together they provide great value investment platform options for retail investors,catering

138、 for all levels of experience and investment needs.Dodl offers ISAs,LISAs,pensions and GIAs with an annual charge of just 0.15%and no commission for buying or selling investments.The simplified investment range offers customers 30 funds catering for different themes and risk appetites.It also featur

139、es 50 popular shares in UK-listed companies for those who like to invest in their favourite brands.Since its launch,we have added a selection of 30 US shares to its investment universe and launched transfer functionality,allowing customers to transfer cash and investments into Dodls full range of ac

140、counts.In the rising interest rate environment,our Cash savings hub is increasingly relevant for our customers,providing access to a range of competitive notice and fixed-term savings accounts from UK authorised banks.People and cultureAndy instilled a positive culture in the business from day one.H

141、e kept a keen focus on it throughout his tenure as CEO,ensuring it remained a real strength as the business grew.I see it as one of my key challenges to repeat that achievement.As a management team,we will need to approach that challenge differently as the business continues to evolve and grow,but s

142、taying true to our Guiding Principles and maintaining high levels of staff engagement will continue to be crucial.It was very pleasing to achieve our highest ever score,and a place in the top 25 of the 100 Best UK Large Companies to work for in 2022,maintaining our status as a three-star company,whi

143、ch is the best standard of workplace engagement,for the fifth consecutive year.D2COur D2C customer numbers grew by 39,236 in the year to 280,281(FY21:241,045),an increase of 16%.We delivered net AUA inflows of 2.5 billion,offset by adverse market movements of 2.7 billion resulting in closing AUA of

144、19.3 billion(FY21:19.5 billion).We are pleased by the continued growth of our full-service D2C platform through challenging market conditions,with the strength of the product underpinned by an excellent 95.8%customer retention rate(FY21:94.8%).In the final quarter,which is typically quieter,we exper

145、ienced a slowdown in new contributions from customers as disposable incomes were squeezed across UK households by the rising cost of living.Our full-service D2C platform is highly valued by customers,as evidenced by the multitude of industry awards it has won during the year,including being recognis

146、ed as a Which?Recommended Investment Platform provider for the fourth consecutive year.We rebranded AJ Bell Youinvest to AJ Bell in October 2022.We have continued to develop the AJBell platform during the year,rolling out Strategic report Governance Financial statements Other information12AJ Bell pl

147、c Annual Report and Financial Statements 2022AJ Bell plc Annual Report and Financial Statements 2022 13Why invest in AJ Bell?Excellent market opportunities3tnTotal addressable marketAward-winning advised and D2C platform products95.5%Customer retention rateA growing base of loyal high-quality custom

148、ers57,835New customers in 2022A scalable platform with long-term margin growth opportunities35.6%PBT marginA diversified mix of revenue types163.8m2022 total revenueHighly cash generative with a progressive dividend policy18 yearsSuccessive ordinary dividend growthHighly-engaged staff providing exce

149、llent serviceTop 25Best UK large company to work forSee our investment case at ajbell.co.uk/investor-relations/investment-caseMarket developmentsIn the short-term,the rising cost of living is likely to lead to lower investable income across the economy,with the UK household savings ratio falling bac

150、k towards pre-pandemic levels.We see this having a bigger impact on the D2C market,as these customers typically have lower levels of accumulated wealth and investable income than advised customers.Our low-cost solutions in both segments of the platform market should be highly appealing to investors

151、who are increasingly looking for value.However,over the longer-term,the structural drivers of growth in the UK investment platform market remain strong,as detailed in our Market overview on page 17.Chief Executive Officers reviewThere are also a number of regulatory developments underway that will s

152、hape the market over time.We support the focus on positive customer outcomes in the FCAs new Consumer Duty.Our ingrained customer focus,providing low-cost,easy-to-use products and accessible investment content,positions us well to operate successfully in the new regulatory environment but we are usi

153、ng it as an opportunity to review everything we do through the new Consumer Duty lens to ensure our products,communications and customer service functions continue to deliver good customer outcomes.As part of the FCAs Consumer Investments Strategy,they have announced a review of the boundary between

154、 advice and guidance.We continue to push for a guidance framework which we believe could provide an opportunity for investment platforms to offer more personalised guidance to customers in the D2C channel and help to deliver good customer outcomes.We are not expecting imminent change in this area,bu

155、t look forward to working with the FCA on this review.The Pensions Dashboards proposal aims to enable people to see all of their pension savings in one place.We will comply with all requirements and are closely monitoring the initiative to assess what opportunities it may present.“I remain a committ

156、ed long-term shareholder.In my new role,my focus will be on helping to build the AJ Bell brand,whilst continuing to campaign on behalf of customers and financial advisers for increased simplicity and fairness in retail financial services.”Andy Bell BSc.FIAA message from Andy BellIt has been an honou

157、r to lead AJ Bell as CEO for over 27 years.I would like to thank everyone involved for their support in helping to grow the business into what it is today.I am delighted to be handing over to Michael,who has proven himself an outstanding leader during his 15 years in the business.His knowledge,passi

158、on and integrity make him the right person to lead AJ Bell into what is an exciting future.OutlookWhilst there are undoubtedly some short-term headwinds,the long-term growth potential of the platform market is significant.We have put strong foundations in place that will enable us to continue to gro

159、w the business.The launch of Dodl during 2022 and Touch in 2023 reflects our aim to cater for more investors and in doing so,further penetrates the platform market with products that provide simplicity,ease of use and excellent service at a compelling price.Our diversified revenue model ensures we a

160、re well equipped to operate in different macroeconomic conditions,as demonstrated by our track record of continued growth.Whilst no business is immune to inflationary pressures,the rise in UK base rates provides an opportunity to combat this,by rebuilding our revenue margins that suffered in an exce

161、ptionally low interest rate environment.Our PBT margins are expected to increase in FY23 as higher revenue margins and the operational gearing inherent in our business model outweigh the impact of inflationary pressures and our planned investment in our brand and products.Finally,I would like to tha

162、nk all of my AJ Bell colleagues;without their ongoing commitment and quality of work our continued success would not be possible.I am incredibly excited about the future of the business as we seek to deliver on the long-term growth opportunity in the platform market.Michael SummersgillChief Executiv

163、e Officer30 November 2022 Strategic report Governance Financial statements Other information14AJ Bell plc Annual Report and Financial Statements 2022AJ Bell plc Annual Report and Financial Statements 2022 15Market overviewWell-positioned to capture growth opportunitiesThe UK investment platform mark

164、et forms part of the broader UK savings and investment industry.Across the industry,trillions of pounds of assets are held by individuals in products such as pensions,ISAs,general investment accounts,bonds and cash savings.Historically,most individuals in the UK held their savings and investments in

165、 products offered by banks,building societies,investment managers,pension schemes,stockbrokers and life insurance companies.A significant proportion of the overall market continues to be held off-platform.Investment platforms are increasingly attracting assets previously held in legacy products,driv

166、en by the improved customer outcomes they can deliver such as the ability to manage investments easily in one place,increased flexibility and investment choice,and often lower charges.As a result,there is an established trend of non-platform assets gradually moving into the platform market.This tren

167、d is expected to continue.The total addressable market for platforms is currently estimated to be worth approximately 3 trillion.With only one-third of this currently held on platforms there is a significant long-term growth opportunity for investment platforms.The platform market is currently worth

168、 1 trillion,with around two-thirds held on adviser platforms and the remainder held on D2C platforms.The market has grown significantly over the last decade,with total AUA having more than trebled from 0.3 trillion in 2012.The advised and D2C segments of the market have both grown at similar rates d

169、uring that period,driven by long-term structural growth drivers and an overriding theme of individuals taking greater personal responsibility for their financial future.AJ Bell is one of only a few platforms operating at scale in both the advised and D2C market segments.Our dual-channel business mod

170、el ensures that we are positioned to capture assets from the whole addressable market,irrespective of whether they are self-managed or using the support of a financial adviser.This maximises our opportunity to capture an increasing share of the assets flowing into the platform market,driving further

171、 market share gains over the long term.3tnTotal addressable market2tnOff platformA significant opportunity1tnCurrently held on platformsAdvised 0.7tnD2C 0.3tnAddressable marketUK platform marketA fast-growing platform marketbnAdvised AUA D2C AUA 14%CAGR20122013201420152016201720182019202020213082143

172、6324743430247332957040069348871649276353080055498366694117132145170205224233246317The long-term drivers that are shaping our industry and driving new growth opportunities.DemographicsThe UKs ageing population and increased life expectancy have led to an increase in state retirement age,causing peopl

173、e wishing to retire earlier to be increasingly reliant on their private pensions and savings.This is driving people to be more actively engaged with their savings and investments from an earlier age.Government policyThere is an increasing requirement for individuals to take greater personal responsi

174、bility for their retirement provision,evidenced by the UK Governments policies in relation to pension freedoms,auto-enrolment and tax-efficient savings and investments.TechnologyTechnological innovation has made the investment platform market more accessible to a broader range of retail investors wh

175、o are increasingly looking for simple,intuitive products to help them achieve their long-term financial goals.FinancialThere is a growing awareness of the UK savings gap,being the difference between the level of current savings and that necessary to provide a reasonable standard of living in retirem

176、ent,and the impact of the shift away from defined benefit to defined contribution pension schemes.UK state pension age is due to reach 67 by 2028The workplace pension participation rate in the UK has increased from 47%to 79%since 2012Structural shift from non-platform providers to platformsThere are

177、 over 27million members of private sector DC pensions in the UKLong-term structural growth driversAJ Bell D2C market share by AUA%20121.320131.520141.820152.320162.820173.220183.920194.820205.520216.2AJ Bell advised market share by AUA%20123.920134.420144.320154.520164.720175.020186.120196.420206.52

178、0216.9 Strategic report Governance Financial statements Other information16AJ Bell plc Annual Report and Financial Statements 2022AJ Bell plc Annual Report and Financial Statements 2022 17Market overviewMarket trends that are likely to affect our businessHow we are respondingRelevance to strategyKey

179、 trendsKeyStrong employer brand and cultureExcellent customer experienceFinancial security and regulatory complianceSustainable growthScalable technology solutionsWe respond to market trends that impact our business,ensuring we remain well-positioned to continue capturing growth opportunities.321Eco

180、nomic uncertainty,high inflation,rising cost of livingEvolving competitive landscapeChanging customer expectationsDuring FY22 the macroeconomic environment has become increasingly uncertain,leading to rising interest rates and cost-of-living pressures on many households.This has been exacerbated by

181、the ongoing conflict in Ukraine.This is inevitably putting pressure on individuals,presenting a short-term headwind for inflows into the platform market as people prioritise essential expenditure over their longer-term investments.Interest rates have risen quickly to counter rising inflation.As a re

182、sult,asset values have been impacted as stock markets have fallen,whilst returns on cash have improved.The platform market is an attractive market supported by long-term structural growth drivers.Leading platforms can attract and retain customers with high lifetime values,driving significant recurri

183、ng revenues.Serving these customers via a scalable platform can deliver attractive profit margins,once sufficient scale is reached.These characteristics have attracted significant capital into the market,driving a continual evolution in the competitive landscape.In recent years,several new competito

184、rs have emerged,particularly in the D2C market,all addressing the market differently with innovative new propositions.This has resulted in differentiated approaches across the market to pricing models,service offering,functionality,customer experience,and the level of brand and marketing activity.Ov

185、er time investment platforms have evolved to meet the needs of a wider range of customers as technology has enabled greater accessibility to the financial markets.There has been a significant increase in the number of first-time or inexperienced investors entering the market in recent years,driving

186、different expectations of what platforms should offer.Customer expectations continue to change,particularly as younger investors enter the market.The ability to manage accounts via a user-friendly smartphone app is increasingly important,whilst different cohorts of customers are attracted to specifi

187、c pricing models such as commission-free or fixed price models.Advised customers tend to be wealthier than D2C customers,with our average advised customer portfolio being 308k compared to 69k in the D2C market.As a result,the pressure on household finances is likely to be felt more acutely by D2C cu

188、stomers,with the advised market already showing signs of being more resilient.Our dual-channel model ensures that we are well positioned to continue delivering net inflows across the platform,despite any short-term weakness in the D2C market.Although there may be pressure on new contributions,consol

189、idation of existing wealth continues to be a key driver of inflows to our platform.This has been a significant contributor to new business for many years as customers and advisers consolidate pensions and other investments held across multiple providers into one place.This activity is expected to co

190、ntinue driving strong inflows and is not dependent on new contributions,so is less impacted by the uncertain market backdrop.With the inflationary environment driving higher interest rates,our diversified revenue model has benefited from improving revenue margins over the course of FY22.We are commi

191、tted to sharing efficiency gains with our customers and earlier this year we made several reductions to our platform charges across both our advised and D2C propositions,delivering total annualised savings to our customers of around 5 million.With our employees also facing rising living costs,we und

192、ertook a detailed review of pay and benefits over the summer.We have made several enhancements for FY23,focused on providing both short and long-term benefits to our people.Our investment in this area represents an annualised increase of over 10%in total staff costs,including an average pay increase

193、 of 7%,increased employer pension contributions,and the introduction of an annual free share award worth 2,000 for all employees outside of the senior management team,ensuring all our people share in our future success.More details can be found in our Responsible business report on page 40.We contin

194、ually monitor the competitive landscape to ensure we keep up with the pace of change and that our propositions remain at the forefront of the market.We are a trusted provider offering an easy-to-use platform,which offers broad functionality and award-winning service at a highly competitive price.Thi

195、s combination has driven strong growth in customers and AUA over many years,and our scale ensures we have a profitable and sustainable business model.The challenging market backdrop has made it far more difficult for newer entrants to achieve the scale necessary to achieve profitability,and business

196、 models are under pressure,evidenced by cutbacks in competitor recruitment and marketing activity.By contrast,we have continued to perform very strongly and increased our market share in the year.From a position of financial strength,we are investing in our brand,our propositions and our people to s

197、upport our long-term growth ambitions.In April,we launched Dodl,a new commission-free investment app for retail investors.This simplified proposition sits alongside our full-service AJ Bell proposition and increases our footprint in the D2C market.We are also developing a simplified proposition for

198、the advised market called Touch,which will similarly increase our footprint in the advised market alongside AJ Bell Investcentre.We recently retired the Youinvest brand from our full-service D2C proposition and are investing in the AJ Bell brand to improve awareness with potential customers.These on

199、going investments strengthen our competitive position and support our ambition to continue capturing market share.We continue to enhance our platform to support all our customers on their investment journey.Alongside the full range of accounts offered on our platform,we provide help to customers by

200、offering educational content,a favourite funds list,ready-made portfolios and AJ Bell investment solutions.The breadth of our award-winning propositions ensures we cater for a wide range of customer requirements,from experienced investors through to first timers.In FY22 our platform attracted over 5

201、7,000 net new customers,5.8 billion of net inflows,and had a customer retention rate in excess of 95%.Our new simplified propositions,Dodl and Touch,will broaden our reach to a new generation of investors across both the D2C and advised segments.Dodl is aimed at younger,less experienced investors.It

202、 offers a simplified investment range and is amongst the best value investment platforms in the market.Touch is a digital custody platform launching in 2023 that lets advisers deliver a streamlined advice service entirely through their clients smartphone.Both new propositions utilise the latest smar

203、tphone technology and have been designed to meet the evolving needs of customers as we look ahead over the next few years.Our heritage in the pensions market means that many customers choose to consolidate their pensions with AJ Bell.Historically,this process has been reliant on the customer to loca

204、te their old pensions and initiate the transfers from previous providers.Having identified an opportunity to make this process easier,we started beta-testing a new pension finding service in July,simplifying the pension consolidation journey for our customers.Link to strategyLink to strategyLink to

205、strategy Strategic report Governance Financial statements Other information18AJ Bell plc Annual Report and Financial Statements 2022AJ Bell plc Annual Report and Financial Statements 2022 19Business modelServing the needs of our customers by making investing easierWe provide an award-winning platfor

206、m operating in both the advised and D2C markets.Our two full-service propositions,AJ Bell Investcentre,an adviser-led investment platform,and AJ Bell,a D2C investment platform,give access to a wide range of tax wrappers,savings and investments.These are complemented by our new simplified proposition

207、s,Touch and Dodl.Driven by our revenue modelOur revenue model includes a mix of fixed fees,ad valorem and transactional charges which provide a balance of inflation protection and resilience in the face of economic and capital market fluctuations.A significant portion of our revenues are recurring,i

208、n the form of charges levied on an annual or other recurring basis.We have high levels of online customer servicing,straight through processing and automation.This enables us to reduce the marginal cost of adding new customers and assets to the platform.Resources and inputsWhat we doA culture that p

209、laces our customers at the heart of everything we doA culture that places our customers at the heart A culture that places our customers at the heart of everything A culture that places our customers at the heart of everything we doof everything we doAdvisedDirecttoconsumerPropositionsandproducts.th

210、atmatchourcustomersneedsCreating value for allBrand and reputationWith over 27 years of experience,we have built a trusted brand through our high-quality serviceand platform propositions.We raise brand awareness through a combination of sponsorship,PR,social media and referrals.A well-invested techn

211、ology infrastructure We operate a hybrid technology model whereby our platform user interfaces are developed in-house,whilst our core back-office systems are outsourced to industry expert software providers.This model provides a number of benefits,including the ability to build adaptable,easy-to-use

212、 interfaces and reduces the cost of regulatory compliance.People and cultureOur success is built on delivering a high-quality service through the skills and passion of our people.Financial strengthWe are a materially debt-free business which holds sufficient funds to more than meet our regulatory ca

213、pital requirements and for supporting ongoing investment in the business.for our customers and their advisersA strong,secure and trusted platform which enables them to manage their long-term savings with easy-to-use products at a low cost,whether directly or with the help of a financial adviser.69.2

214、bnAssets under administration95.5%Customer retention ratefor our peopleOur learning and development framework ensures we support and develop our staff to allow them to fulfil their potential and progress their careers.We reward our staff through our competitive pay and benefits package.3-star engage

215、mentBest Companies survey accreditationfor our shareholdersOur high customer retention rates and diversified revenue model combine to yield predictable and sustainable revenue streams from the business,which quickly convert into cash.This supports our progressive dividend policy whilst enabling us t

216、o invest in future growth.7.37pTotal ordinary dividend per sharefor our other stakeholdersWe have a strong social conscience and support our local community with a variety of charitable initiatives.299,000Charitable donationsUnderpinned by factors that determine our long-term growth:Market trends an

217、d opportunities See page 16 StakeholdersSee page 26Risk managementSee page 58GovernanceSee page 70The value we createHow we measure value creation.Strategic report Governance Financial statements Other information20AJ Bell plc Annual Report and Financial Statements 2022AJ Bell plc Annual Report and

218、Financial Statements 2022 21Leaders in our marketStrategy in actionScalable technologysolutionsSustainable growthExcellent customerexperienceWhat this meansProgress in 2022Future focusLinksFinancial security and regulatory compliance Strong employerbrand and culture We will grow both customer number

219、s and AUA in a sustainable and cost-effective manner.We help people to invest but will not provide personal recommendations.We will continue to develop our customer propositions,with a focus on ease of use,service and price.We will deliver scalable technology solutions that are easy to use for both

220、customers and colleagues,appropriate to their needs and adaptable for future change.The security of our technology is of paramount importance.We will preserve our financial security,and our regulatory and reputational standing.We will treat all stakeholders fairly.We will develop and support our tal

221、ent to help them achieve their potential.We will strive to ensure our staff are actively engaged.Our strong employer brand and culture will enable us to attract and retain quality staff.Our new pension finding serviceMost adults have jobs with multiple employers throughout their career,and subsequen

222、tly accumulate a number of different pension pots.These can be difficult to manage and old pensions may be hard to trace.We have completed the first phase of our pension finding service rollout.This service is aimed at simplifying the pension consolidation journey for our customers.We will find thei

223、r previous pensions free of charge,enabling customers to combine their pensions into their AJ Bell pension in just a few quick and simple steps,meaning low costs and more control.Strong organic growth in customer numbers(up 16%)across our advised and D2C platform propositions.Delivered platform net

224、AUA inflows of 5.8 billion.AJ Bell Investments AUM increased by 27%to 2.8 billion.Rebranded AJ Bell Youinvest to AJ Bell to improve the effectiveness of marketing activity.Excellent customer retention rate of 95.5%.Reduced several charges across our Investcentre and AJ Bell propositions.Launch of Do

225、dl,our new low-cost investment app for the D2C market.Development of Touch,expanding our offering for advisers.Continued investment in our hybrid cloud-based technology framework to ensure our platform is operationally resilient.Expansion of the Technology Team to facilitate the ongoing development

226、and investment in infrastructure for our new simplified platform propositions.Revenue increased by 12%to 163.8million and PBT increased by 6%to 58.4 million.Maintained a strong regulatory capital surplus throughout the year.Continued our progressive dividend policy,with a total ordinary dividend for

227、 the year of 7.37p per share.Achieved a three-star accreditation in the Best Companies survey for the fifth consecutive year.Strengthened our pay and benefits package for all employees effective from 1 October 2022,including the introduction of a new annual free share award scheme.To grow the platfo

228、rm business by increasing brand awareness and implementing a cost-effective distribution strategy.To further improve the customer journey to ensure we are the easiest platform to use,considering the evolving needs of our customers.To continue to develop our range of simple investment solutions.To co

229、ntinue to develop the investment platform to ensure it is scalable,adaptable,resilient and secure,whilst implementing solutions to deliver operational efficiencies in the business.To deliver financial growth to facilitate a progressive dividend policy whilst managing the capital base,ensuring suffic

230、ient reserves for regulatory requirements and investing in the business.To continue to focus on staff engagement and development,promoting our culture whilst enhancing our employer brand.Launch of DodlIt is estimated that 8.6 million adults in the UK hold more than 10,000 of investible assets in cas

231、h.Our research suggests that many of these people dont know where to start investing and are deterred by too much choice and complexity.In April,we launched Dodl.Its ease of use,simplified investment range and low charges make it an ideal solution for this type of customer.Principal risks123KPIs AUA

232、 Number of retail customersPrincipal risks12KPIs Customer retention ratePrincipal risks123KPIs PBT marginPrincipal risks123KPIs Revenue Revenue per AUA PBT Diluted EPSPrincipal risks12Key1Strategic risk2Operational risk3Financial risk Strategic report Governance Financial statements Other informatio

233、n22AJ Bell plc Annual Report and Financial Statements 2022AJ Bell plc Annual Report and Financial Statements 2022 23Key performance indicatorsHow we performedWe use selected key performance indicators(KPIs)to monitor progress against our strategy.These are the primary KPIs which we use to measure st

234、rategic progress.Our KPIs are reviewed annually in relation to the strategic objectives of the Company through our business planning process and have been linked to the relevant strategic drivers.Why it is importantThe number of retail customers is the number that have at least one funded account wi

235、th an AJ Bell product at 30 September 2022.The number of retail customers can be used as a measurement to determine the success of our propositions,customer service and marketing.Number of retail customers2020201920212022232,066295,305382,754440,589Why it is importantRevenue per AUA is the total rev

236、enue generated during the year expressed as a percentage of the average AUA in the year.Revenue per AUA provides a simple measurement to facilitate comparison of our charges with our competitors.Revenue per AUA1bps 202020192021202221.923.922.622.2Why it is importantOur revenue is the total income ge

237、nerated by the Groups activities,comprising recurring ad valorem,recurring fixed and transactional revenue.Revenue provides a measurement of the financial growth of the Group.Why it is importantAUA is the value of assets for which AJ Bell provides either an administration,custodian or transactional

238、service.AUA is a measurement of the growth of the business and is the primary driver of ad valorem revenue,which is the largest component of Group revenue.AUA1bn 202020192021202252.356.569.272.8Revenuem 2020201920212022104.9126.7163.8145.81.Our KPIs include alternative performance measures(APMs).APM

239、s are not defined by International Financial Reporting Standards(IFRS)and should be considered together with the Groups IFRS measurements of performance.We believe APMs assist in providing greater insight into the underlying performance of the Group and enhance comparability of information between r

240、eporting periods.For definitions,see page 178.Link to strategyMovement 2021 to 2022 +0.4bpsLink to strategyMovement 2021 to 2022 -5%Link to strategyMovement 2021 to 2022 +15%Link to strategyMovement 2021 to 2022 +12%Why it is importantPBT is the profit generated by the Group before Corporation Tax i

241、s paid.PBT is a measurement of the financial performance of the Group.Profits can be used to strengthen the capital base,invest within the business or be returned to investors.Why it is importantPBT margin is calculated as PBT divided by total revenue.PBT margin is a measurement of the efficiency of

242、 the Groups business model in converting revenue into profits.Why it is importantThe customer retention rate is the average number of funded platform customers during the financial year that remain funded at 30 September 2022.Customer retention is a measurement of customer satisfaction.Why it is imp

243、ortantDiluted EPS represents profit after tax divided by the weighted average number of shares and unexercised options in issue during the period.EPS provides a measurement of profit per share to determine the value created for shareholders.PBTm 202020192021202237.748.658.455.1Customer retention rat

244、e%202020192021202295.495.595.595.0PBT margin%202020192021202235.938.435.637.8Diluted EPSp 20202019202120227.479.4711.3510.67Link to strategyMovement 2021 to 2022 +0.5pptsLink to strategyMovement 2021 to 2022 +6%Link to strategyMovement 2021 to 2022 +6%Link to strategyMovement 2021 to 2022 -2.2pptsKe

245、yStrong employer brand and cultureExcellent customer experienceFinancial security and regulatory complianceSustainable growthScalable technology solutions Strategic report Governance Financial statements Other information24AJ Bell plc Annual Report and Financial Statements 2022AJ Bell plc Annual Rep

246、ort and Financial Statements 2022 25Our customers and their advisersOur peopleWhy do we engage?What are their needs and material interests?Outcomes and highlightsHow have we engaged and considered their needs and material interests?Other stakeholdersOur shareholdersStakeholder engagementEngaging wit

247、h our stakeholdersWe believe effective stakeholder engagement is a key element in driving a successful,sustainable business,built for the long term.We proactively engage with and listen to our stakeholders to understand what is important to them.By understanding our stakeholders,we can factor into b

248、oardroom discussions the potential impact of our decisions on each stakeholder group and consider their needs and interests.The table sets out who our key stakeholders are,the key reasons we engage with them,the areas they have a material interest in and a summary of how we engaged in the year when

249、considering what is most likely to promote the success of the Company.Our Section 172 statement for the year ended 30 September 2022 is on pages 28 and 29 and demonstrates how our stakeholders influenced some of the principal decisions by the Board during FY22.Our customers include retail investors,

250、financial advisers and wealth management companies.Our success is dependent on our ability to understand our customers needs and develop appropriate products to meet those needs.Our people are at the heart of our success.Our success is built on delivering a high-quality service through the skills an

251、d passion of our people who bring our values to life across the business.Our shareholders include both institutional and retail investors,including AJ Bell customers and employees.Delivering on our long-term strategic objectives is dependent on our shareholders support.Other stakeholders represent t

252、he local communities in which we operate,as well as the wider environment,our suppliers and our regulators.As a socially responsible business,we believe we have a responsibility to our local communities,wider society and our suppliers.We operate in a highly regulated environment and engage with our

253、regulators constructively.An investment platform for our customers and advisers that:is secure,reliable,and easy-to-use;provides a high-quality service and is low cost;and helps them meet their long-term financial objectives.A working environment for our people that:facilitates their engagement at a

254、ll levels;provides them with development and progression opportunities;promotes their physical and mental wellbeing;promotes diversity and inclusion;rewards them appropriately;and encourages flexible working practices.Our shareholders want to invest in a business that:delivers on its investment case

255、;and provides long-term sustainable returns.Our other stakeholders want us to:act as a responsible corporate citizen in all respects;and conduct our business with integrity.Customer services and websitesOur advised and D2C teams have ongoing engagement with our customers and their advisers through t

256、elephone contacts,meetings,organised events and forums,newsletters and written communications.Our proposition websites are also an important medium to communicate with our customers and their advisers and obtain feedback on our products and services.Our Investcentre website provides the tools for ou

257、r advisers to help manage their retail customers portfolios,whilst our AJ Bell site assists customers at all stages of their investment cycle by providing guidance and solutions through our AJ Bell funds,ready-made portfolios and favourite funds.SurveysCustomer and adviser surveys are conducted on a

258、n annual basis with the results analysed and reviewed at Board level.Specific user groups also perform beta-testing to provide further insight and feedback for us.This engagement and feedback informs the way in which we can best serve our customers and their advisers,both now and in the future.Surve

259、ys,staff communications and feedbackWe have an open,collaborative and inclusive management structure and engage regularly with our staff.We do this in a number of ways including our annual staff survey,the appraisal process,our intranet site,Company presentations,leadership lunches and our wellbeing

260、 programme.Our CEO hosts regular town hall talks for all our staff and provides an opportunity for staff to ask questions.In addition,we have regular email updates on the business from the CEO.We also take feedback from our talent development,apprenticeship and training courses and as a result look

261、to improve future training and development programmes.We have a designated Non-Executive Director,Helena Morrissey,who chairs our EVF.The forum meets every two months and has discussed a variety of themes raised by staff,including diversity and inclusion,culture,communication,career development,pay

262、and benefits,the cost of living and charitable activity.Company share schemeWe continue to encourage employee share ownership through our BAYE scheme(see page 160)to engage our workforce in the performance of the Company and to align employee and shareholder interests.We also launched a new annual f

263、ree share scheme for all employees from FY23 onwards.Ongoing investor relations programmeThrough our investor relations programme,which includes regular trading updates,management roadshows,investor and analyst meetings,attendance at investor conferences,and our AGM,we ensure that shareholder views

264、are brought into the boardroom and considered in our decision making.We host a Q&A webinar for retail investors following the publication of our annual results and regularly meet with investors throughout the year.In October 2022,we hosted an investor site visit in which our CEO,MD of D2C and Invest

265、ments and MD of Advised presented an update on our strategy and hosted a Q&A.It also gave investors and analysts a chance to see our Manchester head office and meet our management team.All members of the Board attend our AGM,which provides an opportunity for shareholders to ask questions and vote on

266、 resolutions.We consulted with over 85%of our institutional shareholders in relation to our new Remuneration Policy,giving our shareholders an opportunity to provide feedback on our proposals and engage with the development of the new Policy.Corporate broker updatesOur corporate broker and sell-side

267、 analysts also provide us with valuable feedback and market insight.Our corporate broker delivers updates on market dynamics and representatives are regularly invited to attend Board meetings.Engaging with our suppliersWe continue to maintain and develop our business relationships,inviting key suppl

268、iers to present to our Board and Executive Committee.In addition to our normal due diligence processes,we ensure members of the management team have regular feedback sessions with representatives from our key suppliers.We ensure our payment terms are fair and in compliance with payment practices.Eng

269、aging with our regulatorsWe regularly engage with the FCA and DWP on consultation papers and industry issues.In addition,we actively seek to lobby via public consultation and with policymakers where we see unfairness or unnecessary complexity.We have continued to engage with the regulator this year,

270、including on our views of the Consumer Duty and Pensions Dashboards.We engage with regulators in an open and collaborative way.Our Compliance Team is primarily responsible for ensuring our regulatory compliance in all respects.Engaging with our communities and wider societyWe have a strong social co

271、nscience and look to support the communities in which we operate as well as encouraging our staff to give something back through charitable and volunteering activities.We have a strong history of engaging with our communities through a variety of activities,donations and promoting volunteering days.

272、We are mindful of our impact on the environment and recognise our responsibility to conserve and protect the environment as far as possible across the business.Hosted a range of events for advisers including Investival and our On the Road seminars.Launched Dodl,our simplified D2C proposition.Continu

273、ed development of Touch.Reduced several charges across our Investcentre and AJ Bell propositions.3-star Best Companies survey accreditation.Improved our staff pay and benefits package.22 new apprentices taken on this year.Launched a new annual free share scheme for all employees from FY23 onwards.Re

274、ported quarterly on our performance.6%increase in ordinary dividends.All resolutions passed at the AGM with a majority of more than 85%.Hosted an investor site visit in October 2022.Enhanced the post-employment shareholding guideline for Executive Directors.30-day payment terms.299,000 of charitable

275、 donations.Preparation for the launch of the AJ Bell Futures Foundation in FY23.Published our first TCFD report.Strategic report Governance Financial statements Other information26AJ Bell plc Annual Report and Financial Statements 2022AJ Bell plc Annual Report and Financial Statements 2022 27Section

276、 172 of the Companies Act 2006(s172)requires Directors to act in the way they consider,in good faith,would be most likely to promote the success of the Company for the benefit of its shareholders as a whole and,in doing so,have regard(amongst other matters)to:a.the likely consequences of any decisio

277、ns in the long term;b.the interests of the Companys employees;c.the need to foster the Companys business relationships with suppliers,customers and others;d.the impact of the Companys operations on the community and environment;e.the desirability of the Company maintaining a reputation for high stan

278、dards of business conduct;andf.the need to act fairly between shareholders and the Company.We set out some examples of how the Board has had regard to the duties under s172 when considering specific matters,and how it has considered the interests of our key stakeholders in those decisions.Further de

279、tail on how the Board operates,including the matters it discussed and debated in the year,having regard to its s172 duties,are contained within the Corporate Governance Report on pages 78 to 85.The Board seeks to understand and carefully consider each of our key stakeholders interests,priorities and

280、 views.The Board recognises that each decision will have a different impact and relevance to each key stakeholder,and so having a good understanding of their priorities is important.Where stakeholder priorities conflict,the members of the Board exercise independent judgement when balancing those com

281、peting interests in order to determine what it considers to be the most likely outcome to promote the long-term sustainable success of the Company.Although the Board engages directly with some stakeholders,engagement also takes place at different levels within the business.The output from engagement

282、 below Board level is reported back to the Board and/or Board Committees and helps to inform both Board and other business-level decisions.Further information about how we engage with our stakeholders and their needs can be found on pages 26 and 27.Section 172 statementPrincipal Board decisions CEO

283、succession16 June 2022 announcementOn 16 June we announced the appointment of Michael Summersgill as successor to Andy Bell as CEO from 1 October 2022.This was the result of long-term succession planning over a number of years,during which Michaels role within the business was evolved and developed

284、to enable him to gain the requisite knowledge and experience.During the same succession planning process we considered whether Andy should remain with the business after stepping down as CEO and,if so,in what capacity.On 16 June we therefore announced Andys intended future role as a non-independent

285、Non-Executive Deputy Chair.In making these announcements the Board took account of:Shareholders,Customers and PeopleWe believe that these stakeholders benefit from the long-term succession planning process by having a new CEO with significant knowledge of our business and the market in which we oper

286、ate.We also believed these stakeholders would benefit from the Board having access to Andys deep experience and knowledge of the wider investment platform market.They would also benefit from there being a Non-Executive Director who was a major shareholder and could provide a shareholder perspective

287、on key issues.We were also mindful of the need to ensure equal treatment of shareholders.RegulatorWe believe that the appointment of a CEO with Michaels knowledge,experience and character aligns with the expectations of the FCA,which was subsequently confirmed through FCA approval of his SMF 1 appli

288、cation.Whilst we considered at a high level the view of the FCA and included the FCA in our post-announcement communications plan,we did not engage with the FCA before the decision was made.This was because as a Board we were not aware of the FCAs view about the risk to effective Board governance th

289、at would arise if a founder CEO with a significant shareholding remained on a board after stepping down as CEO.We also took account of the fact that the role did not require regulatory approval and of precedents of former CEOs remaining on a board in similar circumstances at other financial services

290、 businesses.27 September 2022 announcementWe announced on 27 September that the Board accepted Andys decision to step down from the Board,but that he would remain with the business in a consultancy role.In addition Andy would have the right to nominate a Non-Executive Director.In making this announc

291、ement,the Board took account of:Shareholders,Customers and PeopleAgain,we believed these stakeholders would benefit from the business still having access to Andys deep experience and knowledge of the wider investment platform market via his consultancy role.In addition,that having a Non-Executive Di

292、rector who was a representative of a major shareholder would provide a shareholder perspective on key issues.Again,we were also mindful of the need to ensure equal treatment of shareholders.RegulatorOn reflection the Board accepted that we should have engaged with the FCA before we made the original

293、 decision,as if we had done so we would have been aware of their views beforehand.Whilst ultimately it remained a decision for the Board to make,after taking account of the FCAs views,the Board considered that the change in approach was in the best interests of shareholders as a whole as well as sta

294、keholders generally.Response to macroeconomic conditionsThe current economic headwinds had both positive and negative impacts on our business and our stakeholders during the year.In particular,the increase in interest earned on customer cash balances,although partially offset by lower levels of tran

295、sactional revenues,resulted in increased revenue.As a consequence,the Board and wider group had to decide how the benefits of that increased revenue should be shared between shareholders and other stakeholder groups.In making those decisions the following factors were considered:ShareholdersThe medi

296、um to longer-term benefit for shareholders of additional investment in the AJ Bell brand,and the expansion of our marketing activity,so we continue to benefit from the long-term structural drivers of growth in the UK investment platform market.PeopleIn order to support our people and address industr

297、ywide recruitment and retention issues,we reviewed and enhanced pay and benefits.This resulted in the doubling of our bonus pool for staff below management level,increased pension contributions and an award of free shares for all of our eligible people,in addition to an inflation-related salary incr

298、ease.CustomersWe reviewed our charges generally,both direct and indirect,and implemented a number of targeted changes for the benefit of our customers,with a view to helping to maintain our competitive edge and ease the impact of current market conditions on customers.Our communityWe established our

299、 new charitable framework,the AJ Bell Futures Foundation,to establish more deep-rooted,long-term partnerships in our communities and committed to contribute 0.5%of our profits each year for distribution to chosen charitable partner organisations.Environment,Social and Governance(ESG)Although the nat

300、ure of our business model is not such that it has a significant impact on the environment,the Board and wider group is mindful of the importance of businesses supporting the response to climate change and mitigating the harmful effects for society as a whole and creating a more sustainable economy.W

301、hen considering our approach to ESG,the Board took account of:Shareholders The benefits of maintaining a strong reputation for being a socially responsible business and the potential efficiency gains from the adoption of more environmentally-friendly business practices.PeopleThat operating our busin

302、ess in a socially responsible way would enable us to attract and retain a diverse and engaged workforce that delivers a high quality of service to customers and advisers.CustomersThat facilitating ESG-related investments will not only be beneficial for society in terms of raising finance for ESG fri

303、endly initiatives,but will also help to attract and retain customers and meet changing customer needs.Our RegulatorThe need to meet the FCAs growing expectations of firms in the financial services sector in relation to ESG in order to help support the transition to a more sustainable future.Our Comm

304、unityThe benefits of strengthening our links with local schools,universities and other educational establishments to help develop the next generation of talent,as well as supporting those in need in our local community.Further information about the ESG initiatives undertaken during the year can be f

305、ound on pages 32 to 53.Strategic report Governance Financial statements Other information28AJ Bell plc Annual Report and Financial Statements 2022AJ Bell plc Annual Report and Financial Statements 2022 29We make investing easierAge:27 years oldMission:To pay for a mortgageCameron wants to invest eno

306、ugh money to pay for a mortgage whilst also achieving capital growth.He holds a Lifetime ISA,as well as a stocks and shares ISA,SIPP and Dealing Account with AJ Bell,with a range of investments held across each of these.When investing,Cameron puts an emphasis on an easy-to-use platform with low char

307、ges.Helping invest in the way he wantsHow we help Cameron to investEase of useCameron finds our direct to consumer platform easy to use.He primarily uses our mobile app and finds it a useful space for consolidating his personal finances,being able to view and manage all of the accounts he holds with

308、 us in one place.Investment choiceCameron believes that we support him to achieve his goals by offering a wide range of investment options,including the ability to invest in US shares,whilst also ensuring that our platform charges remain low.Initially attracted by our recognisable brand,Cameron move

309、d his investments to AJ Bell and has developed trust in the excellent customer service that we provide,whilst helping him to realise his investment ambitions.Cameron is a real AJ Bell customer sharing his honest opinions.See more at ajbell.co.uk Strategic report Governance Financial statements Other

310、 information30AJ Bell plc Annual Report and Financial Statements 2022AJ Bell plc Annual Report and Financial Statements 2022 31Responsible businessCommitted to responsibilityWe are committed to conducting our business responsibly.Our purpose is underpinned by a set of guiding principles that define

311、the way we do business.Our dedication to be principled means we do the right thing,creating a culture where responsible decision making is at the heart of everything we do.We are driven by our purpose;we help people to invest,and our product propositions help to address the growing societal need for

312、 individuals to take personal responsibility for their financial future by enabling people to take control of their own investments,be that directly or with the help of a financial adviser.We seek to understand the social and environmental factors which impact our stakeholders most and to respond in

313、 a way that creates long-term sustainable value for all our stakeholders.During the year we have made strong progress on embedding ESG into our business strategy and defined a set of metrics to measure performance against our four responsible business pillars:responsible propositions,responsible emp

314、loyer,supporting our local communities and environmental awareness.Delivering against these metrics will help to drive long-term sustainable returns for our shareholders.Alongside embedding our approach to ESG,we have focused on several key initiatives in 2022:Rolled out a comprehensive new pay and

315、benefits package for our people,ensuring we remain an attractive employer and support our committed workforce in a challenging economic environment.Introduced a new diversity and inclusion framework as part of our commitment to measure and drive improvements in the diversity of our workforce.Establi

316、shed the AJ Bell Futures Foundation,a new charitable framework aimed at developing more deep-rooted,long-term partnerships in our communities.Published our TCFD report,enabling us to better understand the climate-related risks and opportunities for our business.We are pleased by the significant prog

317、ress we have made in these areas but acknowledge the need for continuous improvement and have set several ESG-related objectives for the year ahead.The focus will be on the implementation of our new frameworks,as well as undertaking an operational net-zero target setting project.“Growing our busines

318、s responsibly,and doing the right thing,are embedded in our culture and how we operate.I am proud to be leading our approach to ESG as we continue to make progress in the areas that matter most to our stakeholders,as evidenced by the retention of our AA MSCI ESG rating.”Peter BirchCFOIn this section

319、Our approach to responsible business We behave in a responsible manner with a focus on our propositions,our people,our communities and the environment.We believe this is important for the long-term sustainability of our business.The Board is responsible for the conduct of AJ Bells business and the d

320、evelopment of its strategy,as well as promoting the long-term sustainable success of the business.This includes how we embed our approach to behaving responsibly across the business and promote a healthy corporateculture.Board of AJ Bell plcThe Board is the decision-making body relating to ESG matte

321、rs,taking ultimate responsibility and providing oversight of managements actions.The Board reviews a bi-annual update on our responsible business strategy.The Board provides oversight and elected Peter Birch,Chief Financial Officer,as the Executive Director responsible for our approach to responsibl

322、e business.Individual objectives have been assigned to Executive Committee members and a cross-functional ESG working group exists for the coordination of day-to-day activities.This structure allows us to fully embed ESG across our existing business strategy.A new NED ESG forum enables the Board to

323、provide more focused input into specific areas.In 2022,the Board reviewed two bi-annual ESG updates.In addition,specific papers were presented to the Board regarding TCFD,our D&I Framework and the staff benefits review.Details of the oversight provided by the Board sub-committees is disclosed in the

324、 Governance section of this Annual Report.How we govern our responsible business strategy Audit CommitteeThe Committee is responsible for reviewing ESG-related financial information and disclosures.Remuneration CommitteeThe Committee oversees that remuneration policy and practices are designed to su

325、pport our strategy and promote long-term sustainable success.Risk&Compliance CommitteeThe Committee is responsible for ensuring ESG-related risks are effectively embedded in risk management frameworks and risk reporting.ESG working groupExecutive responsibilityOur cross-functional ESG working group

326、is responsible for the co-ordination of day-to-day activities,ensuring we deliver on our objectives,and for the consolidation of our responsible business approach.ESG-related information is reviewed by the working group before being presented to the Board,its sub-committees or the NED ESG Forum.The

327、CFO has the delegated authority from the Board to manage our responsible business strategy and is accountable for its delivery.Executive Committee members are allocated specific ESG-related objectives in their business areas,aligned to our strategy.ESG ForumThe NED forum performs reviews and deep di

328、ves into specific ESG topics and reviews ESG objectives for management.The forum provides recommendations to the Board.We administer 69 billion of assets for our customers financial futures.In the year our customers withdrew over 880 million of pension funds for their retirement and over 1,300 custo

329、mers used their Lifetime ISAs towards purchasing a first home.The use by AJ Bell plc of any MSCI ESG research LLC or its affiliates(“MSCI”)data,and the use of MSCI logos,trademarks,service marks or index names herein,do not constitute a sponsorship,endorsement,recommendation,or promotion of AJ Bell

330、plc by MSCI.MSCI services and data are the property of MSCI or its information providers,and are provided as-is and without warranty.MSCI names and logos are trademarks or service marks of MSCI.Responsible p36 propositionsResponsible p39 employerSupporting our p44 local communitiesEnvironmental p46

331、awareness Strategic report Governance Financial statements Other information32AJ Bell plc Annual Report and Financial Statements 2022AJ Bell plc Annual Report and Financial Statements 2022 337Our responsible business pillars:Responsible businessWho it impactsCustomers and their advisers,wider societ

332、y,shareholdersWho it impactsEmployees,shareholdersWho it impactsLocal communities,shareholdersWho it impactsCustomers and their advisers,wider society,shareholdersOur aim is to make investing easier and empower people to invest for their financial future.Pivotal to fulfilling our role in society is

333、offering propositions which enable more people to invest.Our people are at the heart of our success.Our success is built on delivering a high-quality service through the skills and passion of our people who bring our values to life across the business.We have a strong social conscience and are committed to making a positive contribution to the communities in which we operate.We recognise the impor