NVFH 2020 Integrated Annual Report

Legal Compliance: The inherent
risk that the Group breaches
primary legislation applicable
to. Primary legislation/regulation
includes: the Companies
Act, JSE Listings Requirements
and Regulations, King Code
on Corporate Governance,
Employment Equity, Broad-Based
Black Economic Empowerment,
Protection of Personal Information
Act, Financial Intelligence Centre
Act, Financial Advisory and
Intermediary Services Act and the
Income Tax Act (amongst other).
Business Continuity: Potential
inability of the business to
implement business continuity in
a crisis situation whereby system
access, communication and/or
resourcing is materially impacted
(e..g owing to fire, flood, disease
or other crisis). This risk has been
tested under the prevailing
COVID-19 lockdown conditions.
To date, the Busines has
responded well and has been
able to formulate robust Business
Continuity Plans and execute
those to minimise disruption and
reduction in productivity.
Cyber Crime: The risk that
internal controls and measures
are not suitably robust to prevent
company confidential or private
client data being accessed
by an unauthorised party
and the Group or parts of the
Group being victims of Cybercrime.
There is an increased
risk of Cyber-Crime during the
COVID-19 lockdown measures
as hackers take the opportunity
and unusual circumstances to
gain unauthorised access to
data and systems.
Earnings Growth: The risk that
earnings growth and broader
financial performance returns
of the Group do not meet
shareholder/market expectations
precipitating a drop in share
value. The COVID-19 pandemic
has caused substantial volatility in
markets across the world which
have precipitated material losses.
There is an increased risk of client
litigation for such losses. To date,
the Group and client investment
portfolios have fared better than
the markets.
X X X X Yes
X X X X X Yes
X X X X X Yes
X X Yes
1.13 Transfer office
Computershare Investor Services (Pty) Limited acts as Transfer Secretary to the Group.
1.14. Application of King IV Principles for the year ended 29 February 2020
King IV advocates an outcomes-based approach towards the achievement of four key governance outcomes being;
(i)
(ii)
(iii)
(iv)
an ethical culture,
good performance,
effective control, and,
legitimacy.
A summary of the King IV principles implemented by the Company in meeting and/or supporting those outcomes is set out below.
While recommended practices were applied where and to the extent applicable to the business, further enhancements will be
made over time in line with the Company’s aspirations to continuously adapt and improve its corporate governance practices.
NVest Financial Holdings Limited | INTEGRATED ANNUAL REPORT 2020 49