Company Registration No. RC000834 Charity Commlssion Reg. No. 1132642 OSCR Registration No. SC040665 CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT (A Compally Incoryorated by Royal Charter) REPORT AND FINANCIAL STATEMENTS 31 MARCH 2024 CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT REPORT AND FINANCIAL STATEMENTS 2024 CONTENTS Page Trustees, Report Statement of Trustees, Responsibilities 13 Independent Auditor's Report 14 Consolidated Statement of Financial Activities 17 Balance Sheets 18 Consolidated Statement of Cash Flows 19 Notes to the Finallcial Statements 20 CHARTERED INSTITUTE FOR SECUIUTIES & INVESTMENT TRUSTEES, REPORT The Ttustees present their annual report and fmancial statements for the year from l April 2023 to 31 March 2024. The Chartered Institht¢ for Securities & Investment ("CISI" or "the Charity" or "the Institute") is registered as charity in England & Wales by the Charity Commission (Registration No. 1132642} and in Scotland by the oifice of th¢ Scottish Charities Regulator (Registration No. SC040665). The company is incotporated by Royal Charter (Registration No. RC000834) and is governed by said Charter and ils &8so¢iated Bye-taws. The group results combine the results of the Charity with the resulis of the following.. Chartered Institute for Securities & Investment {Services) Ltd, a wholly owned UK subsidiary, which wns the trading activities of the Institut¢. Securities & Investment tnstitute, a registered charity number 1132642-1 and a company limited by guarantee, governed by a memorandum and articles of association, company registration number 2687534. Th¢ company is dormant and a wholly owned subsidiary of CISI. Chartered Institute for Seawities & Investment {India), a brdnch, estsblished in Mumbai and which acts as a liaison office for the Indian subcontinent. Chartered Institute for S¢curities & Investn]ent (Singapore) Pie Ltd, a wholly owned subsidiary of Chartered Institute for Securities & Investment (Services) Ltd, estsblished in Singapore. This company did not trade during the year. Securities & Investment Institut¢ (China), a wholly owied subsidiary of Chartered Institute for Securities & Investment (Services) Ltd, established in the People's Republic of China, which Thns the consulting activities of the Institute in China. Chartered Instithte for Securities & Investment (Servxces) Ltd (DMCC Branch), a branch of Chartered Institute for Securities & Investment (Services) Ltd, established in Dubai, UAE which acts as a representative office. Chartered Institute for Securities & Investm¢nt (Services) Ltd, a legally regisiered Sri Lankan branch office of the UK company of the same name, which also provides operational support for the global activities of the Institute. Chartered Institute for Securities & Investment {Servi¢es) is a branch registered as a representstive office in the Philippines. This company d(¢s not trade in its own right. Chartered Instithte for Securities & Investment Cypws Ltd is registered as a wholly owned subsidiary in Cyprus. This company did not trade during the year. b) d) g) h) Trustees The following individuals served as Truslees throughout the year {except wl)ere noted) Chris Allen MCSI Resigned 15 January 2024 Nandika Buddhipala MCSI Chris Clark, Chartered MCSI Debbie Clarke, Chartered MCSI Michael Cole-Fontayn MCSI (Chair) Danny Corrigan MCSI Tracey Davidson, Chartered MCSI Petros Florides, Chartered FCSI Robert Hughes-Penney, Chartered FCSI Catherin¢ M¢Guinness Clair Mills Peter Moores, Chartered FCSI Graham Nicoll MCSI Claire Perryman, Chartered MCSI (Deputy Chair) Ravikumar Puranam FCSI{Hon) Alan Ramsay FCSI(Hon) Amyr Rocha Lima. CFPTM Chartered Financial Planner, Chartered FCSI Sushil Saluja Rebecca Taylor, Chartered FCSI Jane Valls * denotes a co-opted Trnstee Trnstee to hold office until following Annual General Meeting and may be r¢appointed at such Annual General Meeting. Committee Appointed 29 November 2023 Resigned 29 September 2023 Resigned 8 August 2023 A,D,F A,B,F,H R¢signed 29 September 2023 Appointed 29 November 2023 Resigned 29 September 2023 CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT The Trustees, all of whom are non-executive, are elected by the members (except for co-optees who are app)inted by the Board) at the Annual General Meeting for a terni of office of three years. None of the Trustees had any commercial interest in the cotnpany or its subsidiaries. The TnLstees served on ihefollowing Commilteas.. Audit and Risk Committee Editorial Panel Examinations Board Integrity & Ethics Committee Internafional Committee Investment Committee Membership Committ¢c People & Remunerntion Committee NVESTMENT POWERS The Institute's Charter provides the Board with the power to invest monies not immediately required for its pury)oses in or upon such investments, securities or property as may be thought fit, subject to such conditions and with such sanction as may for the time being be imposed or required by law. ORGANISATION The Institute's ultimate management group comprises the non-executive Board of Trustees shown above, including up to d)ree Board-appoitited co-opted Trustees. which decides upon strategic and poli¢y matters. The executive stsff are organised into the departmenls of learning and qualifications, membership & professional standards, op¢rations, global business development, corpordle gov¢rnance & support and services (Clwtered Institute for Svurities & Investsnent (Services) Lld). Chfief ExeeutRve Trdcy Vegro, OBE Executlve Direetor. Membership & BUSIne￿ Development Kevin Moore, Chartered FCSI Exeeutlve Dlreetor of Finance and Rewur¢e$ Karen AshcrofL CA, MCSI Chief Operating Offieer John Preston Executive Director of Global Learning Mandy Gill CHARfTABLE OWECTIVES The Instithte's charitable objectives are to: promote for the public bei)efit the advancement and dissemination of knowledge in the field of securities and investments; develop high ethical standards for practitioners in securities and investments and to promote such stsndards in the United Kingdom and overseas: and act as an authoritative kndy for the purpose of consultation and research in matters of education or public interest concerning investment in securities. A full des¢ription of the activities undertaken by the CISI in pursuit of its charitable objects can be found in the published annual report or online at the CISI'S website {www.cisi.org). REVIEW OF ACTIVITIES Set out below is a summary of the Instityte's a¢tivities, classified by its three charitable objectives. A more detailed review appears in our Annual Report, a separate document that can obtained by application lo our Registered Office or Can be downloaded from our web site www,¢isi.or CHARTERED INST￿uTE FOR SECURITIES & INVESTMENT Charitable Objective I: How Ihe CISI promotes, for the public benefit, the dissemlnatlon and advancement of knowledge in the field of securities and investments. ATTAINING COMPETENCE More than 46.(K)O CISI exams were taken over the year, an increase of IOO/o on the previous year. CISI'S global reach ontinu¢s to grow. for the fwst ti￿e, exams tsken outside of the UK outhumbered those in the UK with n¢arly 24,000 exams taken internationally. As in previous years. there was notably strong gTowth in the Middle East. Nearly I 1,000 exams were taken in Saudi Arabia. Thes¢ examb were developed on behalf ot the Saudi Capital Markets Authority to support professionalism in the Saudi capital Mart￿lS. We received funding from ihe UK Governmcnt's Department for Business and Trade to woA( with regulators in North Africa and signed an agreement with the Moroccan Capital Market Authority (AMMC) to develop exams forpractitioners in Morocco. CISI alqo continue*& to work with regulators. partners, and r]rn￿ across Europe. India. sub-Sah8r8n Ilfrica and Asia Pacific to off¢r qualitications to practitioners and dev¢lop a level of benchmark competency across financial markets globally. CISI works with partners in the education sector globally, with students tsking our examinations at Christ University and Jain University in Bangalor¢, the University of Johanne8burg in South Africa and the University of Sussex in the UK. amongst others. MAINTAINING COMPETEIYCE Global membership ¢onlinues to grow, as we build on our networks, parlnerships, and regulatory approvals in new jurisdictions. As a result, ai 31 March 2024 we had 52,000 members, including 24,000 swdent members. We continue to d¢v¢lop new l&qrning resources and invest in a digital-first offer for CISI members and students. In 2023 we launched a new digital Learning Platfonn for our members, to provide an accessible, flexible and engaging way for members to access learning across a diverse range of iopics and chamiels. We held more than 300 events, both online and in person, to help practitioners keq) their knowledge and skills up to date. These include a full progrdmme of events for CISI members WOTking in fmancial planning to support them in developing and sharing theirknowledge and skills, such as the Fitmncial Planning Conference 2023, the annual Accredited Financial Planning Firnis Conference, Change Festival in October 2023 in Birn]ingham for the financial plat￿erS of the ￿tUre and the Pensions Webinar Series launched at the beginning of 2024. Our examinations are accredited by the UK regulators Ofqual, Qualifications Wales, and the Council for the Curriculum. Examinations and A&sessment {CCEA) in Northern Ireland. We are also accredited in the UK by the Financial Conduct Authority (FCA) to provide many thousands of individuals with their peTsonal Statement of Professional Standing. CISI also holds a UK license issued by thc Us-based Fittancial Planning Standards Board (TrPSB) to certAfy Financial Planners and Financial Planning fiTms as having attained the required competencies for their trade via CFP certificatGS". During the year. the Institute Spent £1 1,653,113 in the pursuance of this charitable objective. Compar￿ to £10,742,935 in the preceding year. Charitable Ohje¢tive 2: Holy the CISI seeks to develop high ethical Standards for practitioners in securities and investments and to promote sueh standards in the United Kingdom Ydnd over5eAS Integrity is one of the k¢y pillars of professionalism on which the Institute is founded. The Institute seeks to maintain its reputation as a thought leader in the field of ethical slandards and behaviour within the Financial Services sector, and our products and services aim to promote and reinforce an expectation of professionalism and high standards. CISI responds to relevant Consultations by regulators and oiher public bodies on related topics, which this year included subjects such as 'Diversity and inclusion in the fllwlcial sector, and 'Proposals for closing the advice gap.. CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT The Institute's integrity case studies and guidance continued to be well received during the year, ¢spe¢ially overs¢as, as many countries look to discover how they can change the culture of the finance sector and help it maintain public lrnst. CISI held its Annual Integrity Event, open to all CISI members, on 2 November 2023 on the topic of 'Transfomation', and the influen¢¢ of integrity and ethics in an era of developments in technology and societal norn)s. On l November 2023 CISI launched a new online course, the Certificate in Ethical Artificial Jnielligence (Al), working Closely with the 695th Lord Mayor of the City of Londo￿ Aldernian Professor Michael Mainelli Chartered FCSI(Hon), on his Ethical Al Initiative. More than 2,500 people registered to take the course in both the UK and elsewhere during the year, including individuals at unive￿itieS, firnis, central banks, and regulators. A further 7,000 Integritymatlers tests were completed during the year, taking the totsl number to tests since inception to more than 110,000. This unique integrity test is a required gateway for those taking capital market exams. CISI also has a mandatory policy ensuring that all members complete an appropriat¢ amount of continuing professional development (CPD) study. The minirnum is set at 35 hours for senior members and ten hours for more junior levels. Of this, at least IOO/o musi be in ethics-related topics. Regrettably. not every member lives up to th¢ Institute's expectations and during the year 73 disciplinary cases were reviewed by our Disciplinary Review Panel, of which 52 cases were closed in this period. Five of the cases reviewed were sufficiently serious to be refe￿ed to the Dis¢iplinary Hearing Panel, an independent review body made up of CISI and lay memb¢rs. Seven cases remain under investigation and I I cases are on hold pending regulatory or legal outcomes. A fi￿ther three cases have been referred to the Disciplinary Panel to be heard in the n¢xt few months. The cases that were heard by the Disciplinary Panel received the following outcomes.. A severe reprimand to rematn on record for 12 months, a suspension from membership for 12 months, relake the CISI Integritymatters test and complete 500/0 of their CPD on Integrity and Ethics within their rwst year of membership reinstatemenl. A reprimand to remain oll record for 12 months and retake the CISI Integrity matters within this same period. In two cases, it was deemed that there were no offences committed. In one case, tt was agreed thai an offence had been committed under 19.1 (c) of the Membership Regulations but no further action would be taken. The publi¢ needs to have confxdence in the iniegrity of members and we actively encourage the reporting of behaviour which falls short of the Institute's PTinciples. In addition to the Menjbership Regulations, the code of conduct imposes an obligation on members to always act not only in compliance with the rules, but also to support the underlying values of the Institute. Expenditure during the year in connection with this charitable objective amounted to £2.619,199, compared to £2,432,230 in the preceding year. Charltable Objective 3: Holv the CISI acts as an authoritative body for the purpose of ¢on$ultallon and research In matters of edueation or public interest Concerning investmellts in securities. The Review, our key publication, continued to b¢ released, offering insightful commentary on important developments, forL%asts, and key issues impacting the financial services sector. Online readership has increased from 7,000 in 2022-23 to over I 1,000 in 2023-24. We published up to 15 articles per month in this last year. highlighting themes including sustainability, partt¢ularly in regard to environmental, so¢ial, and governance (ESG), artificial intelligence and data use in our rapidly developing technological landscape and inclusivity and collaboration acTOSS disciplines in the sector. We are committed to provtding valuable, timely and thought-provoking conlent to our readers. CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT CISI has launched several strategic alliances and announced new partnership8 with financial services organisations in the past year, offering our qualifications for uptake to help boost local markets and advance professionalism. Bodies we have partnered with include.. Botswana Stock Exchange {BSE) Women in Finance Rwanda (WIFR) Anglia Ruskin University, UK Ethiopian Capital Markets Authority (ECMA) Baliic Financial Advisors Asso¢iation (BFAA) ASEAN Bankers Association {ABA} Capital Markets and Securities Authority (CMSA), Tan7ania Qatar Fijwicial Centre Authority (QFCA) We trialled moving Financial Planning Week, our annual Campaign to raise awareness of the importance of financial planning, from October to January. It was a great success. with a 39Q/o incre&se in visits to OUT Wayfmder'fmd your planner, website when compared to the previous campaign. CISI members offered complimentary fmancial planning sessions and tips to consumers, and shared Tesources with their networks. As active founding members of the infornia] Chartered Body Alliance, we continued to meet regularly with the Chartered Insurance Institute and the Chart¢r¢d Banker Institute to identify opportunities to rdise professionalism across financial services. For example, we met with the UK regulator to discuss the SenioT Managers and Certification Regime. We also held joint events for our members and continued to distribute our global qualification in Green and Sustainable fll)anc¢. Costs incurred in connection with this charitable objective during the year amounted to £4,010,191. compared to £3,327285 in the previous year. How the CISI provides Publlc Beneflt CISI is conscious that it has a public service obligaiion and, as well as g¢neral education, the CISI has ¢ontinued its commitment to provide wider general access, regardless of means. During the year, the CISI.. Launched the student atllbassador initiative to expand students. understanding of the fllwlcial services sector and make inforniation about the Institute more accessible to alumni. Partnered with organisations aimed at helping young people, including NEXTGEN PLANNERS to encourage and support the next generation of financial services professionals, The InSti￿te is working to equip the future generations with essential fmancial lit¢ra¢y skills next. We continue to work with members and fmns in schools and colleges to provide infonnation, mentoring atsd support for studenL8 working towar(L8 CISI qualifications or ¢onsidering a career in fuLancial servtces. Provided free and paid CPD events to both members and non-members to raise awareness of good practice and ethical dealing within the se¢urities and investment profession. Spoke at conferences on topics relevant to the industy and the wider business public, including whistleblowing and integrity. Worked with other professional and charitsble bodies, offering our knowledge and expertise to help advance appropriate projects. OtTered Charity Days: CISI enjployees can take a charity day each year to work for a charity or on a Community project of their choice. The Trustees have given due consideration to the Charity Commission's published guidance on the Public Benefit requireinent under the Cbarities Act 2011. CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT FUTURE ACTIVITIES The CISI'S key obje¢tives for 2024125 are: Improve the value of our member offer with accessible, flexible and personalised qualifications and CPD, through the implementation ofthe Membcrbhip Strategy Review and digitsl frst initiative8. 2. Evolve our operating model, rcflecting a clear ESG strategy and horizon-scan to ensure we have th¢ capability and capacity to deliver value for all stakeholders. Develop our people and culture to be an employer of choice with people as a key atiset. 3. Invest in our digithl resources to enable a relevanl customer focused digital strategy and service offering. nsure good governance and regulatory compliance, adhering to requir¢mcnts in all our activities. Maintaining engagement with regulators and other awarding organisation8 tu ensure we are up to date with changes lo policies. As an educational charity. collaborate and contribute to research and public debate on topics concerning the rllMncial services sector. REVIEW OF FINANCIAL POSITION Including investment gain8 of £980,133 (losses of £365,334 in 2022123). the In8titute recorded a r¢tained surplus of £1.916,250 (£2.146,601 in 2022123) from income of £19.22m (£19.Olm in 2022123). Income increased by £204,245 (1.070/0), and operating expenditure increased by £1.780.063 (10.790/0). The Institufr's reserves increased by £1,916,250 (2022123 £2,146,601) to a total of £19,017,716 (2022123: £17,101,466). The Instityfr has continued to maintain its healthy financial position, with free reserves of12.08 month4. operating costs, considered by the Trustees as prudent (see ieserves policy below). During the year, funds were applied towards achieving the Institute's main objectives Ihrough the provision of relevant qualifications, membership, events and learning resources. The Institute's wholly owned UK trading subsidiary, which undertakes non-charitsble activities, recorded a loss after tax and distributions of £5,381 (2022123.. loss of £93,854). The Institute continues to remain fllwi¢ially independent, deriving funding through fees Charged in relation to its chaTitable activitie5, such as individual membership, eXa￿s, and professional development events. RESERVES POLICY Th¢ Institut¢ has high operational gearing in a cyclical industry and therefore requires sufficient reserves to meet its charitable obj¢ctives and to draw upon during times ot industy downturn. The reserves policy, together with the approach to inv¢sting reserves, is reviewed and approved a[￿UallY by the Board. As part of thi8 review, rebeTves between a minimum of £15.6m and a maximum of £17. Im has been agreed as the new policy level of reserve&4. The Trustees have agre¢d this Ancrease from a minimum of £13.9m and nMx1mu￿ of £15.4m in the prior year. This is due to a planned reinvestment in the operdtions of the Institut¢. Areas for investment are membership development, qualifications and learning resources, people and technology. It is expected that a planned reduction ofreservc8 will occur over a 3-5-year period. The Board had postponed the release of existing re8crv&4 in 2022123, considering it appropriate to hold reserves above the suggested Jnaximum level with discussion8 continuing on using a significant proportion of reserves for broader 8trategic purpo8¢8. In the current year. operational perfonnance was stronger than expecled, and careful management of the cash and investment portfolio resultcd in contributions to reserves. At the year end. the total free reserves. defined as total net assets less tangible and intangible fixed assets, of the Institht¢ amounted to £18.651,763 (2022123: £16,828,750), which represenied 12.08 months. worth of the expected running costs for 2024125. The policy of tkne Institute regarding payments to suppliers is to make payments no later than tbe agre¢d t¢rn]s in relation to the goods or service received. At the end of the year reserves totalled £19,017.716 (2022/23: £17,101,466). CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT GOING CONCERN The Charity has a strong reserve position and has sufficient available resources, as demonstrated by the reserve policy above. li has adequate fthallcial resources and is well placed to manage the business risks. Its planning process, including financial projection. has taken into consideration the Current economic climate, and its potential ongoing impact on the various sources of inci)me and planned expenditUTe. The Charity's cash d¢7)￿5]t& can easily be drawn down, should working capital be required. The Trustees believe that there are no material uncertaintie&& that call into doubt the Charity's ability to continue for the foreseeabl¢ ￿ture. The accounts have therefor¢ been prepaTed on the basis that the Charity is a going concern. IIYVESTMENT POLICY The Board has delegated the regular Teview and supervision of the investm¢￿1 of sutplus funds to an Inveslm¢nt Committee, comprising suitably experienced members including two Truslees, which i¥ tas'ked with addressing th¢ rnaintenance of a short-terni cash portfolio and a medium to long terni capital portfolio. The Cash Portfolio Across th¢ cash portfolio there should be a spread of at leasi five inslitution8 with no one institution comprising more than 301/ly or less than l O 0/0 of the amount in the portfolio, or holding more than £2m. Deposits of over £IOOk 8hould only be placed with banks with an investment grade credit rating from Fitch. S&P, or Moody's. Deposits up to £1 Ook can be placed with any bank covered by the Financial Services Compensation Schem¢, irrespective of Credit raling. All policies have been followed successfully. The Medium to Long Terjn Porlfolio The Investment Committee and the Board discuss the CISI'S reserv¢ funds on a regular basis and between them decide when and how much capital Can be invested for a longer period. These funds then fall within the Medium to Long Terni Portfolio (MLTP) where there will be wider investment powers. Funds in the MLTP are invested with a view to achieving a total return in ex¢ess of that achievable on casb deposit over the medium to long trrnl (5+ years). The risk profile of the MLTP is medium ri8k. The Investment Committee appoints qualified fund managers who then use an appropriate fund from their range to provide a suitable investment solution. The managers are expect¢d to report to the Investment Committee on a six-monthly basis to a given benchft￿rk agreed at the time of appointm¢nt. The Executive Director of Finance & Resouro¢s also monitors progress of the investments on a regular basis. ThL. MLTP was valued at £10,783,034 on 31 March 2024. The Investhienl Commillee monilors the inv¢'stm¢nts on a regular basis. however. any appoiiltrnent of managers requires the Board to delegate authorily lo the Investment Conimittee on a case-by-case basis. The Board and the Investment Con]nJittee consider styles of investment and i￿Y ethical or other restrictions on a regular basis. The Trnstees re¢ognise that consideration of Environmental, Social and Governance (ESG) issues is important for the potential to D￿ke a positive impact, achieve good long-ternl retLllll% and reflect the values of the cl￿ritY. As such investment managers a￿ required to demonstrate a robusl and 8y8teTnic approach to ESG when invesling. CHARITABLE GRANTS In prior years CISI has made donations to two independent charities. the chartCr￿ Institute for Securitie.8 & Investment Educational Trust and Chartered Institute for Securities & Investment Futu￿ Foundation. No donations were made in the current or prior y¢ar and CISI is nlonitoring the activkties of both charities before considering any further donations in futur¢. VOLUNTEERS The Instithte derives benefit from the services of unpaid volunteers, by virtue of the time given by its Trustees (other than the Chair who is remunerated for their services) and by practitioners who serve on various Committees and panels. No donations in kind were received during the year. FUNDRAISING ACTIvrrIES The charity had no fundraising activities requiring disclosure under S162A of the Charities Act 2011. CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT CHARITY COVERI¥4ANCE CODE The Institute takes its governance responsibilities seriously and, as a large charity, aims to have a governance framework that is fit for pury)ose, complianl and efficient. Twstees and Director-level staff have been provided with training on their duties and responsibilities under th¢ Charity Governance Code and similar pie¢¢s of guidan¢e and legislation. New Trustees are provided with inforniation on their Charity Commission and governance responsibilities on appointment, and all Trustees are updatcd relevant Charity Commission changes. RELATIOIYSHIPS WITH OTHER BODIES In pursuit of its charitable objectives, the Institute provides relevant qualificali0Th8 to the securities and investment industy, many of which are on thc UK Financial Conduct Authority lisl of appropriate qualifications. Th¢ Institute is registered with the Charity Commission forEngland & Wales and with the Office of the Scottish Charity Regulator. It is recognised by Ofqual, (￿alIficatiOnS Wales and CCEA as an awarding body for the securities and inveslment industry and is also accredited by thL FCA for the issiwice of Statements ofProfe88ion21 Standing to retail inv&stnJent advisers. The Institute is a founder mcmbeT of the Chartered Body Alliance. along with the Chartered Insuranc¢ Institute and Chartered Banker Institute. The Alliance was created to stimulate greater collaboration and operates with an inforn￿l but strategic approach. The Chartered Body Alliance believes thai by working togyether the alliance will achieve greater public benefit. continuing to raise professionalism and tjvsl across fmancial services by promoting high stsndards of knowledge, skill, integrity and behaviour. Its core objectives are set out below. Raising professionalism and trust across financial services. Promoting high standards of competence, knowledge and ethical behaviour. Making it easier for the public to access the services of qualified profesqionals. Encouraging individuals in the sector to undertake reco￿lSed professional qualifIcations. Board The Board of the Chartered Instityfr for Securities & Investh)ent meets five times per yeaT and comprises all non- executive TTUStees. The Trustees are typically employed in senior positions within firnis operating in the securities industy. They are identified by existing Board members for their expertise or nominated by members of tbe Institute. Up to 15 Trustees are elected for a tenn of three years, eid)er by a ballot of the membership at the AGM, or by the Board. If Board-appoinled, the Trustee is required to stand down froth the Board at the nextAGM and seek re-¢lection by membership ballot, in accordance with the Charity's Charter and Bye-Laws. Up to a furth¢r three Trnst¢es may also be co-opted by the Board to serve such period as the Board decides. On eleclion or appointment, the new Twstees are given an induction to the tnsiitute, its activities and their responsibilities under charity law. Any Trustee is subject to rigorous review of their value to the Board and committees where their reappointment will result in more than nine years scrved on the Board. The Board appoints the Chair and the Chief Executive. The Chief Exccutive is not a Ttustee. At its meetings. the Board considers matters including: policy and %trate&'y- people and culthre financial perfoTn]ance, including annual budgets. re4ponses lo industy consultation papers. and reports from the standillg comvnittees. The executiv¢ staff of the Institute submits managcment information to the Trusle¢s lo ¢nable thcm to discharge their duties. The Trustees may take independent advice at the Charity's expense. Committees and Delegation The Board has delegated some of its powers to ceriain committees and a full list of all committees, logether with the names of the serving Twstees, are shown on pages 3 and 4. Those committees to which the Board has delegated powers have Sp￿]riC frrn)s of relerence. TILe Audit and Risk Committee is ¢haired by Rob¢rt Hughes-Pcnney, Chartered FCSI. The Board has delegated the power of appointment and removal of other members of staff to the Chief Executive. The duties delegated to the CEO may be delegated by them to other members of staff as they see fit. io CHARTERED INSTrruTE FOR SECURITIES & INVESTMENT Remuneration Policy The People & Remuneration Comn)ittee reviews and approves or am¢nds the overall salaries budget and proposed changes to salaries annually, based oil recomn)endations from the Executive. It also reviews the remunerdtion of all Executive DirectOTS and Chair of the Board, including pension rights of Executives on an individual basis with regard lo their perforniance reviews and current levels of remuneration and with reference to remuneration levels in other charities of comparable scale and cojnplexity. The People & Remuneration Commitfr¢ also approves the design and deterniines the largets for any performance-related pay schemes. Trustee Remuneration All Trnstees give their time freely and are not paAd for theiT trusteeship, with th¢ exception of the Chair, who is remunerated for their services, as allowed by the Institute's Charter. Diversity, Equity and Ineluslon The average number of employe&9 globally in the year was 201 of which 121 were in the UK. While we are not required io report to the UK Government on our gend¢r pay gap we actively monitor and act on this and other diversity inforniation. On l April 2024. our UK employees were 5701. female and 430/0 male. Our UK pay gap data collected on l April 2024 revealed a n]edian gender pay gap of19.50/0 and a mean gender pay gap of 6.7 /0. The median gender bonus gap was 26.30/0 and the mean gender bonus gap was 15,7/0, As an edu¢ational charity, we are fvlly committrd to developing the next generation of practitioners and to ¢nsuring that a career in fmancial services is accessible to all. CISI is proud to be signatories of both the Women in Finance Charter aftd the Race at Work Charter. Following a culture audit, we founded a People Forum during the year as a mechanism to share ideas on organisational culture development. Key Risks The following are the key risks assessed as the mosl significant for the Institute: Economic Uncertainty- CISI is conscious of limiting exposure to economic and political events through diversity of product mix and a geographical spread of revenues. The Trnstees are inforn)ed through monthly reporting to enabl¢ prompt action if needed. Data Breaches and Cybercrime- CISI ensures that ongoing, substantial work is undertaken on its systems, contra¢ls, communications, and sthff awareness. Regular stsff training is undertaken on inforniation security and data protection and simulated "phishing" exercises are undertaken severdl times per year to keep stsff alert to evolving threats and criminal techniqu¢5. Business Continuity and Disaster Recovery - Many of the Institute's employees are b&8ed in Sri Lanka, which has experienced significant economic difficulties in recent inonths. We have active contingency plans in place for all I￿atiOnS and there are no critical systems located in Sri Lanka. IT Infrastructure - The Institute is very reliant on IT but mitigates the risk through employing expert consultants, completing rigorous resilience tests and updating and renewing its key software regularly. During the year it has continued to upgrade operating systems and applications. Regulatory Compliance- CISI is reliant on Ofqual for its slalus as an examination Provider. The Charity has ID place an ongoing programrne of training. inten)al audit, and continuous improvement. Reputation and Accredited Body slatus - The Institute relies heavily on being accredited to set and manage exams and award qualifications accordingly. This could be put at risk by a sttious lapse that damages its reputation. To mitigate this risk, the Charity has many procedures in place, closely monitored by the Insti￿te,S Membersbtp Committee, to assure the compliance of systems, staff and training partners including a so¢ial media policy, annual reviews of partners, wmpetence, FCA accreditation, plus requirAng all staff to take competen¢e tests in the Brib¢ry Act and data protrction law. Internal Control and Rlsk Management The Trustees acknowledge that they are responsible for the maintenance of an effe¢live system of internal control. However, no syslem of internal fmancial control ¢an provide absolute assurance against material misstatement or loss. The Trustees have considered the n)ajorbusiness risks and control objectives relevant to the Institute and controls were found to be appropriate and generally satisfactory. il CHARTERED INSTITUTE FOR SECUIUTIES & INVESTMENT The Instithte's Control objectives include.. the maintenance of the industy's confidence in the Institute's relevance, integrity and status. the identification and evaluation of business risks, through regular risk assessment and review. and the direction of operating and fmancial strategy" th¢ nurturing of high ethical standards, effective communications and a strong overall control environment. the safeguarding of th¢ assets of the Institute and the effective use of resources. and th¢ promotion of detailed fu￿1claI and operational controls necessary for tbe production of reliable and up- to-date fmancial inforniation. In pursuit of the above control objectives the Insti￿te has in place a number of key internal controls and Pr￿esseS that include.. liaising with its members and their employers to ensure the Institute's continued relevance; fornially identifying, evaluating and reviewing risks. communicating the high standards of behaviour expected of its employees by inclusion of the Institute's code of conduct in employTnenl contracts and additionally, through fonnal objective setting and perfornwice appraisal schemes, including regularly identifying and thking action to satisfy training needs. creating a secure environment to protect the Charity's assets and regularly reviewing management inforniation to ensure the effective use of resources. seeking legal protection for CISI trademarks and domain names by registering them in appropriate jurisdictions. operdting signing limits to ensure that the Charity cannot be committed financially without proper authority, and producing regular financial rq)orts for Board review which include estimates and judgmenls made by the business managers. The Institute's Audit and Risk Committee currently comprises five non-ex¢¢utive Trustees. Its scope includes the ass¢ssm¢nt of the cost effectiveness of the external Auditors, consideration of the financial statements of the Chartered Institule for Securities & Investment and the consideration of any internal control matters, wbi¢h may be brought to its attention. The Board has reviewed the need for an internal audit function, and this is being estsblished, to commence for the 2024125 financial year. REGISTERED OFFICE AND PROFESSIONAL ADVISERS Registered o￿lee 20 Fen¢hur¢h Street London EC3M 3BY Bankers Bank of Scotland 600 Gorgie Road Edinburgb EHI 13XP Audilors Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW Solfiefitors BDB Pitmans LLP For and on behalf of BDB Pitmans LLP One Bartholon]ew Close London ECIA 7BL Crowe U.K. LLP has indicated its willingn¢ss to be reappointrd as statutory auditor. Ap ved by the Board of Trustees on 17 July 2024 and signed on behalf of the Board by Mic Cha I Cole-Fo yn, MCSI Robert Hughes-P ey, Chartered FCSI Audit & Risk Conllnittee Chair 12 CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT STATEMENT OF TRUSTEES, RESPONSIBILITIES The Tru8t¢es arc re¥pon%ible for preparing the TTUStees' Annual Report and Financial Statemenl8 in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Stsndard8). The law applicable to charities in England and Wales and in Scotland requires the Tn￿tee$ to prepare fmancial statements for each financial year which give a true and fair view of the state of affains of the Charity and the group and of the incoming resources and application ofresources of the group for that period. In preparing these fllwicial siaternents, the Trustees ar¢ required to.. select suitable accounting policies and then apply them consistently. observe the methods and principles in the Charities SORP. make judgments and estimates that are reasonable and prudent- stste whether applicable accounting standards have been followed, subject to any material departures disclosed and ¢xplained in the [￿ancIal statements. prepare the fmancial statements on the going concern basis unless it is inappropriate lo presume that the Charity will continue in business. The Trustees are Tesponsible for keeping adequate accounting records that are sufficicnt to show and explain the Charity's trdDsactions, disclose with reasonable accuracy at any time tbe fu￿1claI position of thc Charity and enable them to ensure that the financial stat¢menls comply with the Charities Act 2011. th¢ Charities (Accounts and Reporls) Regulations 2008, th¢ Charities and Tnjstee Investtnent (Scodand) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the Charity's constitution. They are also responsible for safeguarding the assets of the Charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 13 CHARTERED INSTITUTE FOR SECURITIES & INVESTMENr Independent Auditor's Report to the Trustees of The Chartered Instithte for Securities alld Investment Opinion We have audited the financial statements of The Chartered Instityte for Securities and Investment for the year ended 31 March 2024 whi¢h comprise the consolidated stat¢m¢nt of fllkmcial activities, consolidated and charity balallce sheet, con801idatcd statement of cashflow and notes to the fmancial statements, including significant accounting policies. The finimcial reporting frarnewO￿ that has been applied in their preparation is applicable law and United Kingdom Accounting Standards., including Financial Reporting Standard 102 1.he Financial Reporting Standard applicable in the UK and Republic of Ireland {United Kingdom Generally Accepted Accounting Prd¢tice). In our opinion the fmancial statements: give a trne and fair view of the state of the group's and the parent charity's aifairs as at 31 March 2024 and of th¢ group's income and expenditure, for the 31 March 2024 then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practtce. and havc bcen prepared in accordance with the requirements of the Charities Act 2011 and the Charities and Truslee Investment (Scotland) A¢t 2005 and Regulations 6 and 8 of the Charities Ac¢ounts (Scotland) Regulations 2006 {amended). Basls for opinion We conducted our audit in accordance with International Standaras on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilities under those standards are filrtber described in the Auditor's responsibilities for the audit of the finan¢ial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the fllmncial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is SU￿1clettt and appropriale lo provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that th¢ trustee's use of the going concern basis of accounting in the prwaration of the financial statements is appropriate. Based on the wod( we have perforn]cd, we have not identified any material uncertainties relating to ev¢nts or conditions tha¢ individually or collectiv¢ly, may cast significant doubt on the group's ability to continue as a going concern for a period of at leasl twelve month&4 from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trnste¢s with respect to going concern are desLYibed in the relevant sections of this report. Other infomation The trustees are rc%yon%ible for the other inforn]ation conlained within the annual report. The other inforniation comprises the infornmtion included in the annual repoQ other than th¢ fllwicial statements and our auditor's report thereon. Our opinion on the fllmicial slatements does not cover the other infornjation and, except to the extent otherwise explicitly ststed in our rep)rt, we do not express any forni of assurance conclusion thereon. Our responsibility is to read the other inforniation and, in doing so, consider whether the other infonnation is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be n]alerially misstated. If we identify such mafrrial inconsistencies or apparent material misstatements, we are reqUI￿d to deternline whether ihis gives rise to a material misslatement in Ihe fmancial statements themselves. If, based on the work we have perforn)ed, we conclude thal there is a material misslalement of this other inforniation, we ar¢ required to report that fact. We have nothing to report in this regard. 14 CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT Matters on which Jve are required to report by exeeptlon We have nothing to report in respecl of the following matter¥ in relation to which the Charities (Accounts and Reports) Regulations 2008 and the Charities A¢¢ounts (Scotland) Regulations 2006 requires us to ryort to you if, in our opinion: the infoTmation given in the fmancial staternents is inconsistent in any material respect with the trustees, report" sufficient and proper a¢¢ounting records have not been kept by the parent charity. or the fllmncial statements are not in agreement with thc a¢counting records and returns. or we have not received all the inforn)ation and ¢xplanations w¢ Tequire for our audiL Responsibilitie5 of trustees As explained mor¢ fully in the trustees, responsibilities statement set out on page 13. the tru8tee8 are responsil)le for the prepaTation of the financial statetnents and for being satisfied that they give a true 8nd fair vicw, and for such internal control the trustees determine is necessary to enable the preparation of fmancial 8tatements that are fr¢¢ from material mibstatement, vthether due to fraud or error. In Preparing the fjnancial statements, the trustees are responsible for a88essing the group and parent charity's ability to continue as a going Conce￿ disclosing. as applicable. matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operdtions. or have no realistic alternative but to do so. Auditor, s responsibilities for the audit of the financial statements We have been appointed as auditor under section 44{1)(¢) of the Charities and Trustee Investment (Scotland) A¢t 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material missLqtem¢nt, whether due to fraud or error, and to issue an auditor's report that in¢ludes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstate￿en(S can arise from frdud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to infiuence the economic decisions of useTS taken on the basis of these f￿ancial ststements. Details of the extrnt to which the audit was considered capable of detecting irregularitt¢s, including fraud and non- compliance with laws and regulations are set out below. A further description of our responsibilities for the audil of the fmancial staten]entS is located on the Financial Reporting Council's website at: www.fr¢.or .ukl(iudiloporL's onsibiiitlLS. This d¢s¢ription fornis part of our auditor's report. Extent to which the audit was considered capable of detscting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with law8 and rcgulations. We identified and assessed the risks of Tnaterial vnisstatement of the f￿￿cial statements from irregularitie8, whether due to fraud or error, and discu&sed these between OUT audit team members. We then designed and perfornied audit procedures responsive to tho%e ri¥kè4, including obtaining audit evidence sufficient and appmpriate to provide a b&818 for our opinion. We obtained an understanding of the legal and ￿gUlatOry framework8 within which the charity and group operates, focusing on those laws and Tegulations that have a direct effect on the deterniination of material amounts and disGI￿u[c8 in the financial statevnents. The laws and regulations we considered in this contcxt were the Charities Act 2011 and The Charitics and Trustee Investment (Scotland) Act 2005] together with the Charities SORP (FRS102) 2019. We L8sessed the requirgd compliance with these laws and regulations as part of our audit procedures on the related financial ststement items. In addition, we considered Provisions of other laws and regulations that do not hav¢ a direct effect on the fmancial statements but Compliance with which might be fundamental to th¢ charity and the group's ability to operate or to avoid a material penalty. We al80 considered the opportunities and incentives that may exist within the charity and th¢ group for frdud. The laws and regulations we considered in this context for the UK operations were. General Data Protection Regulation (GDPR), Healih and Safety legislation, Taxation legislation, Employjnent legislation, and regulatory framework for awardtng qualifications. 15 CHARTERED llYSTITUTE FOR SECURITIES & INVESTMENT Auditing standards limit the required audit procedures lo idelltify non-compliance with these laws and regulations to enquiry of the Trust￿1 and other nlanagement alld inspeclion of regulatory and legal correswndence, if any. We identified the greatest risk of material impacl on th¢ fllMn¢ial statenients. from irregwlarlties, including fraud. to be within the override of controls by managemenL Our audit PTocedures to respond to these risks included enquirie8 of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing a¢¢ounting cstimats for biases, reviewing regulatory correspondence with the ChaTity Commission, HMRC, ICO and OfQual, and reading minut&s of m¢¢tings of those charged with governaDCe. Owing to the inherent limitations of an audiL there is an unavoidable risk that we may not have detected some material misstat¢m¢nts in the fllwAcial statemenls, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in tbe financial slatements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audil there remained a high¢r risk of non-detection of irregularities, as these may involve collusion, forgery. inlentional omissions, misrq)resentstions, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expect¢d to detect non-compliance with all laws and regulations. Use of our report This Teport is ll￿de solely to the charity's trnstees. &8 a body. in accordan￿ with Part 4 of the Charities (Accounts and Reports) Regulations 2008 and Regulation 10 of th¢ Charities Ac¢ount$ (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the ¢harity'8 tnL$tCC.8 tho%e matters we are required to stste lo them in an auditor's report and for no other purpose. To the fullest extent pennitted by law, we (lo not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have fornied. Tina Allison Senior Siatulory Auditor For and on behalf of Crowe U.K. LLP Ststutory Auditor London 24 July 2024 10 CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES Year ended 31 March 2024 Unreslrfieted funds 2024 Unrestrieted funds 2023 Iyote INCOME FROM: ChaTitable activities". Membership subscriptions Membership enty fees QualifIcations and development Publications and conferences Investment income Other income 5.708,676 65,356 9.137.454 2,966,351 504,289 836,494 5.583.933 76,383 9,184,878 3,085,264 240,593 843,324 TOTAL INCOME 19,218,620 19,014,375 EXTENDITURE OIY: Charitable activilies Dissemtnation & advancement of knowledge Ethics Consultation & research 11,653,113 2.619,199 4,010,191 10,742,935 2,432.220 3,327,285 TO'fAL LXPENDITURE 18,282,503 16,502,440 Net investment gains J (losses) 980,133 (365,334) NFT INCOME AIND MOVEMENT IN FUNDS 1.916.250 2,146.601 UNRESTIUCTED FUF4DS AS AT I APRIL 2023 & 2022 17,101,466 14,954,865 UNRLSTRtCTED FUNDS AS AT 31 MARCH 2024 & 2023 19.017.716 17.101,466 The Dotes on pages 20 to 31 forni part of these fjnancial statements. 17 CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT BALANCE SHEETS As at 31 March 2024 Note GROUP 2024 2023 2024 2023 FIXED ASSETS Tangible assets Intangible assets Investments 365,953 272,716 365,953 272,716 11,783,034 12,148,987 10,662,052 10,934,768 11,883,034 12.248,987 10,762,052 11,034,768 CURRENT ASSETS Stock Debtors: amounts talling du¢ after one year Debtors: amounts falling due within one year 7,043 5,580 7,043 5,580 io io 4,013,877 4,188,875 4.013.877 4,188,875 Cash at bank and in hand 10,043,249 14,064,169 9,948,839 14,143,294 10,041,466 14,062,386 9,946.839 14,141,294 CREDITORS: amounts falling due within one year Provisions for liabilities (6,929,770) (7,479,792) (7,221,735) (7, 864.579) 17 NET CURRENT ASSETS 7,134,399 6,663,502 6,840.651 6,276,715 Amounts falling due after more than one year (265,670) (496,804) (265,670) (496,804) TOTAL NET ASSETS 19,017,716 17,101,466 18,823,968 16,814,679 REPRESENTED BY: Unrestricted income fund 19,017.716 17,101,466 18,823,968 16,814,679 These financial statements were approved and authorised for issue by the Board of T￿s￿eS on 17 July 2024 on behalf of the Board of Trnstees: Micha Chair Cole- tayn, MCSI Robert Huglies enney. CharteT¢d FCS Audit & Risk Commillee Chair 18 CHARTERED INSTITUTE FOR SECUIUTIES & INVESTMENT CONSOLIDATED STATEMENT OF CASH FLOWS Year Ended 31 March 2024 Iyote 2024 2023 Cash flows from operating aetivities Net cash (used in} I provided by operating activities 13 (20,010) 1,380,390 Cash flows and illvesting activities Dividends. interest and r¢nt8 frorn investments Purchasc of tangible fixed assets Pll￿haSe of investsn¢nts, at cost Cash transfer from investments Net cAsh provided investing activities 504,289 (249,020) (140,849) 240,593 (146.618) (132,929) 85.427 46,473 114,420 Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting Period 94,410 1,426,863 9,948,839 8,521,976 C2sh and cash equivalents at the end of the reporling period 10,043,249 9.948,839 Cash in hand 2,132,171 7,911,078 10,043,249 4,202.262 5,746,577 9,948,839 Notice dq)osits Total cash and ea5h equivalents 19 CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT Notes to the financlal statements year ended 31 Ivlarch 2024 CHAIUTY INFORMATION The Chartered Institute for Securities & Investment ("CISI") is registered &8 a charity in England & Wales by the Charity Con]tnission (Registration No. 1132642) and in Scotland by the Office of the Scotlish Charities Regulator (Registration No. SC040665). Tbe company was incorpoTat¢d by Royal Cl￿ter (Registration No. RC000834) and is governed by said Charter and ils associated By¢ Lawb and domiciled in the UK and is a public benefit entity. The addre&s of the registered office il+ 20 Fenchurch StreeL London, EC3M 3BY. ACCOUNTING POLICIES Basis of preparation The accounts (r￿￿CIal statements) have b¢en prepared in accordance with the Charilies SORP (FRS102) applicable to charities preparing their accounts in accordance with FRS102 the Financial Reporting Standard applicable in the UK and Republic of Iieland and the Charities Art 201 l and the Charities and Trnstee Investlnent (Scotland) Act 2005 and the Charitie8 AccouT]ts {Scotland) Regulations 2006 and UK Generally Accepted Accounting Practice as il applies from l January 2015. The Chartered Institutc for Securities & Inv¢stment {"CISI") meets the definition of a public benefit entity under FRS 102. A&sets and liabilities are initially re￿gnised at historical cost or ts7nsa¢tion value unless otheTwise stated in the relevant accounting policy nole(s). Basis of Con501idatioll The group fllwicial staletnents consolidate the financial statements of Chartered Institute for Securities & Investment and its subsidiaries, as reported in note 9, up to 31 March 2024 on a line-by-line basis. Other than Chartered Insti￿te for Securities & Investments (S¢rvi¢es) Limited, all international brancheg, liaison offices and subsidiaries, results are included in the Charity's results. The net movement in fimds of the Charity for the year was an increase of £1,916,250 (2023: £2,146,601). The Charity has taken advantage of the exemptions in FRS 102 from the requirements to present a Charity only Cash Flow Statement and certain disclosures about the Charity's financial instruments. Going Con¢ern The Trnstees have a reasonable expectation that the charily and group adequate resources lo conttnue its activities for the foreseeable fu￿re. Accordingly, they continue to adopt thc going concern basis in preparin¥ the financial statements as oudined in the Statement of Truslees Responsibilities on page 13. The TrusteL' have reviewed forecasts for a period beyond 12 months from the date of Signing the accounls. These havc been prepared by manageinent and the assumptions have been stress tested. The Trustees are satisfied that proresses are in place to identify, report and reftnedy any sustained losses, and there are .8ignificant reserves and available cash for the Institute to utilise if required. The Trustees will continue to review this Posltion regularly. Foreign Currency Translation Transactions in foreign CUTrencies aTe recorded at the rate of exchange ruling at the date of the transaclion. Monetary assets and liabilities are shown in the balance sheet at the rate of exchange ruling at the balance sheet date. Gains and losses on exchange are included in the Statement of Financial Activities in th¢ expenditure of the ¢haritsble activities having been allocated amongst the other support costs shown in note 4 in the notes to the f￿￿n¢la1 statements. The functional currency of The Chartered Instityte for Securities & Investrnent and its subsidiaries is considered to be pounds sterling because that is the Currency of the Primary economic environment in which th¢ CRwtty/group operates. The consolidated fmancial statements are also Presented in pounds sterling. 20 CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT Notes to the financial statements year ended 31 March 2024 (Continued) Membership Subscriptions The membership subscription year runs from l April to 31 March. Subscriptions received from members are included in the financial statements in fi￿1 for the year to whi¢h they relate. Surns received prior lo the year end in re%pe¢t of the forthcoming subscription year are t￿ated as subscriptions received in advance in the ba1￿ce sheet and taken to iticome in the new subs¢TiPtion year. Entry fees are tak¢n to income as they are received. Examination Entry Fee5 The qualification registration fee attracts one year's free student men]bership and as such this income is recognised over the year. Examination fees are recognised only when the cxam is taken. Training Services Income Income from courses and training 8ervicGS are accounted for on an accruals basis. Investment Income Income from bank deposits is a￿OUnt¢d for on an accruals basis. Allocation of Expenditure All expenditure is accounted for on an accruals basis and has been listed under headings that aggregate all the costs r¢lated to that activity. Where costs cannot be direct]y attributed they have been allocated to activities on a basis consislenl with the use of the resources. Direct costs, including direcily attributable salaries, are allocated on an ￿tUal basis lo the key stralegic areas of activity. Other salaries are allocated between expense headings on the basis of time spent, and other Costs are allocated in proportion Éo direct costs relating to each charitable activity. Funds All funds Currently belonging to the Charity are unrestricted. Unrestricted funds are funds which are available for use at the discretion of the Trustees in fLwtherance of the general objectives of the Charity and which have not been designated for other purposes. Tanglble Flxed Assets Tangible fixed assets are stated at Cost less deprectation. An asset is capitalised when its original cost is in excess of £2,500. D￿reCiation is provided at rates Calculat￿ to write oty the cost of fixed assets over the estimated useful lives of the assets. The rates of depreciation used in the year are as follows". Computer equipment and telephones Straight line, over three years Fixtures and fItting Straight line, over four years Leasehold improvements Straight line, over five years Intangible Assets Intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses. Amortisation is charged so as to alloGate the cost of intangibles less their residual values over their estimated useful lives using ihe straight-line method. Intangible assets ar¢ amortised over the following useful economic lives.. Goodwill an]ortisation (IFP) Straight line, over five years Finaneial Instruments Investments, including bond5 held as part of an investment portfolio ar¢ held at fair value as quoted on the market at the balance qhcct date, with gains and losses being recogni8cd within income and expendltL￿e. Investments in Subsidiary underlakings are held at cost less impairni¢nt. The Charity has financial assets and fllwi¢ial liabilities of a kind that qualify as basic fmancial instrum¢nts. Basic financial instnunents are initially recogni8ed at transaction value and subsequently measured at the present value of fu￿re cash flows (amortised cost). Financial assets held at amortised cost comprise cash at bank and in hand, short tenn cash deposits and the group's debtOTS excluding prepayinents. Financial liabilities held at amortised cost comprise the group's short and long-terni creditors excluding defe￿ed incorne and taxation payable. No discounting has been applied to the,8e flnancial instruments on the basis that the periods over which amounts will be settled are such that any discounting would be immaterial. 21 CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT Notes to the financial statements year ended 31 March 2024 (Continued) Investment in Subsidlary Undertaking The inveslment in subsidiary undertaking is slated at cost less provision for any impairn)ent. Cash At bank and in hand lllcluded in cash al bank and in hand are all current a￿OUnt balances in the UK and abroad, all petty cash and foreign currency a¢¢ounts plus all treasury investments on one year's notice or less. Stocks Stocks of workbooks and publicity items are valued at the lower of cost and selling price less costs to complete and s¢ll. Leases Operating lease rentals are charged to the statement of fllMn¢ial activities in equal annual amounts over the lease tern]. Pension Costs The Charity offers a defined contribution pension ￿h¢me in the UK and other appropriate arrangements overseas. In the UK the Charity contributes f￿ed percentage rates of salary to an employees, personal pension scheme and has no further liability for th¢ ￿h¢M¢, which is adtninistered on behalf of the Chartered Institute for Securities & Investrnent's employ¢¢s by an independent manager. The Institute's pension policy fulflls the requirements of the Employment Equality (Age) Regulations Act 2006. There are two levels of contribution. dependent upon the length of service of each employee. Provlsfions Provisions are reeognised when the Company has a pr¢s¢nt legal or constructxve obligatioTh rising as a result of a past event, il is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate ¢an be made. Provisions are measured at the present value of the expenditure expected to be required to settle th¢ obligation using a rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as an interest expense. Taxation The Institute is registered as a charity and therefore benefits from exemption from Corporntion tax on certain sources of income, so long as the income is applied for charitable purpos¢s. Critical accounting judgements and key sourees of estfimatlon uncertainty In the application of the Charity's accounting wlicies, with are described in note 2, Trnstees are required to make judgements, estimates, and assumplions about the ¢arrying values of assets and liabilities thai are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experien¢¢ and other factors that are considered to be relevant. Actual result5 may differ from these estinthtes. These estimates and underlying assumptions are reviewed on an on-going basis. Revisions to ￿cOuntIng estimates are Tecognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects the current and ￿t￿re periods. Th¢ key sources of estimation uncertainty that hav¢ a significant effect on the amounts recognised in the f￿anCIal statements are described in the accounting policies and are sun)marised below: Dilapidatlons provision The Charity has provided for its possible liability in relation to its leasehold property which has been estimated based on standard costs geographically adjusted and is included in accruals. The Charity has reviewed the ongoing value of its inveslnient in IFP and, being satisfied that the membership income is substantial and continuing, see no reason to provide for any impairn]ent in the investhient. R¢dundancy￿erMlnatioll Payments Redundancy and tern)ination payments are accounted for in the peri(Kl in which they are agreed. 22 CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT Notes to the financial statements year ended 31 March 2024 (Continued) INFORTrL4TION REGARDING TRUSTEES AND EMPLOYEES None of the Trustees who served durin¥ the year received any emoluments from the Charity in the current or prior y¢ar, with the exc¢ption of th¢ Chair. The Charity's Royal Charter pmvid¢s for the Chair to be r¢munernted for their services and emoluments tothlling £44,265 (2023.. £44,490) were paid to the holder of that posi during the year. The emoluments including payment in lieu of pension, of the highest paid employee, the Chief Executive, were £339,276. During the year, five Twstees were reimbursed by the Institute for travel and subsistence expenses incU￿ed for £3,190 (2023.. £7,509), Staff costs during the year Group ChArity 2023 2024 2023 2024 Wages and salaries Social security costs Pension cosL8 8,614,918 830,188 519,283 7,520,886 756,130 465,087 8,612,518 830,188 519,283 7,518,486 756,130 465.087 9,964,389 8,742,103 9,961,989 8,739,703 During the year, there were redundancy or tern]ination payments n￿de which amounted to £42,709 (2023: £nil). There were no such payments outsthnding ai the year-end {2023: £nil). Of these payments, £nil related to redundancy (2023: £nil) and £42,709 to terniination (2023: £nil). The emoluments (including t&xable benefits in kindy paym¢nts in lieu of pension, and bonuses but excluding pension contributions) of peT8olls employed by the group as at the year-end that exceeded £60,000 were as follows: 2024 2023 £60,001- £70,000 £70,001- £80,000 £80,001- £90,000 £90.001- £100,000 £ioo,001- £110,000 £110,001- £120.000 £120,001- £130.000 £140,001- £150,000 £160,001- £170,000 £170,001- £180,000 £180,001- £190,000 £210,001- £220,000 £220,001- £230,000 £240,001- £250,000 £330.001- £340,0(M) 16 12 14 The key management personncl of the Charity comprised the Trustees, the Chief Executive, the Chief Operating Officer, the Executive DiTectOT of Finance and Resources, the Executive Director, Membership and Business Developm¢nt and the Ex¢Gutive Director of Global Learning. The total ¢mployee benefits of the key management personnel were £1,258,688 (2023: £1,352,085). 23 CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT Notes to the f￿anCIal statements year ended 31 March 2024 (Continued) The average number of persons cmployed by the group in th¢ year (includtng terni contract posts) was as follows: 2024 2023 Dissemination & advancement of knowledge Ethics Consultation & research Governance 107 46 122 34 37 201 197 2024 No 34 33 12 20 22 2023 Operdtions Qualifications & develi)pment (including international) Management and administrative support Business development Membership, Professional development and marketing 29 30 io 16 23 108 121 Overseas staff 80 201 89 197 EXPENDITURE Expenditure includes the following: 2024 Group 2023 Group Depreciation and amortisation of assets Rentsls under operdting leases Auditors, remuneration for audit work Auditors. remuneration for other service5 Foreign currency10sses 155,783 1,181,533 39,800 5,900 36,060 105,746 1,144.551 37,200 5,350 23,868 24 CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT Notes to the fmancial statements year ended 31 March 2024 (Continued) ANALYSIS OF EXPENDITURE Amortlsatfion Staff Costs & Deprecirdtion Other Dlreet Other Support Tolal 2023-24 Total 2022-23 CROUP Charitable activities: Dissemination & advancement of knowledge Ethics Consultstion & research 6,706,450 100,457 2,019,473 2,826,733 11,653,113 10,742.935 15,263 306,832 429,484 2,619,199 2,432220 40,063 805,390 1,127,335 4.010,191 3,327,285 1,867,620 2,037,403 Total 10,611,473 155,783 3,131,695 4,383,552 18,282,503 16,502.440 Other direct costs comprise the non-staff costs associated with the delivery of the different charitabl¢ activities whilst the other support costs comprise the overall establishment and office costs of the Charity, which are allocated across the charitsble activities. Included within charitable activities are governance costs which amount to £281,634 (2023.. £248.743). Governance costs ¢omprise LM)ard and committee expenses, audit and legal fees and costs relating to the provision of company secretarial and cotporate registration services. Slaff costs include all staff related costs itiGluding insurances, payroll Costs, rccruiknent expenses and payments to long-tern] foreign consultants. Analysis of Other Support C05t5: Di55emination Ethi¢s Consultation & research Total 2023-24 Total 2022-23 Yddvaneement of knowledge Premises Printing, postage & stationery Mad(eting travel & subsistenc¢ Irrecoverable VAT Conununications & tT Equipment hire Other Governance 975,834 25,492 30,755 403,319 518,145 63,211 770,990 38,987 148,265 3,873 4,673 61,279 78,725 9,604 117,141 5,924 389,174 10,166 12,266 160,848 206,643 25,209 307,480 15,549 1,513,273 39,531 47,694 625,446 803,513 98,024 1,195,611 60,460 1,314,474 20,369 48,280 417,036 651,411 71,587 1,154,869 58,610 Total 2,826,733 429,484 1,127,335 4,383,552 3,736,636 25 CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT Notes to the fmancial statements year ended 31 March 2024 (Continued) INVESTMENT INCOME 2024 2023 UK bank int¢rest receivable Dividends receivabl¢ 363,440 140,849 107,664 132,929 504,289 240,593 OTHER INCOME The figure of other income in the Statement of Financial Activities includes income relating to the issuance of statC￿Lnt￿ of Professional sL￿dIng of £195,766 (2023.. £193,274). Also included in otheT income is illcomc under non-cancellable commercial propety leases of £541,808 (2023.. £537,960). TAXATION The Chartered Institute for Securities & Inveslment is a charity and enjoys certain exemptions from t& a¢cording to Part I I Corporation Tax Act 2010. Accordingly. no liability to UK Corporation Tax arises on its activities. The subsidiary company, the Chartered Institute for Securities & Investment (Services) Ltd, has no tax liability for the financial year. The Singapore subsidiary is subject to I￿al taxation reqUAre￿ellts. There is no tax liability because of accumulated losses. FIXED ASSETS TANGIBLE ASSETS Computer equipment Fixtures and fittlngs Leasehold improvements Total Group and Charlty Cost As at 31 March 2023 Additions Disposals As at 31 March 2024 414,901 207,124 157,679 41,896 1,401,934 1.974,514 249.020 622,025 199,575 1,401,934 2,223,534 Depreefiatlon As at 31 March 2023 Charge for the year Depreciation on disposals As at 31 March 2024 257,031 105,728 140,438 14,616 1.304,329 35,439 1,701,798 155,783 362,759 155.054 1,339,768 1.857,581 Net book value 31 March 2024 259,266 44.521 62,166 365,953 Net book value 31 March 2023 157,870 17,241 97,605 272,716 26 CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT Notss to the financlal statements year ended 31 March 2024 (Continued) YVESTMENTS 2024 2023 Group Charlty Group ChArity Balance at mark¢t value as at 31 March 2023 Additions Reinvested income Unrealised gain / (loss) Disposals Balance at mark¢1 value a4 at 31 March 2024 Long T¢rni Deposit Account Totsl InvestD]ents 9,662,052 9,762,052 9,894,457 9.994,457 609,302 140,849 980,133 (609,302) 10,783,034 609,302 140,849 980,133 {609,302) 10,883,034 132,929 (365,334) 132,929 (365,334) 9,662,052 9,762,052 1,000,000 11,783,034 1,000000 11,883,034 1,000,000 10,662,052 1,000,000 10.762,052 The Group investment balance represents 22,035 uttits in CCLA'S COIF Charities Investment Fund (2023: 22,035 units), 4,109,172 units in Sardsin's Alpha CIF for Endowmenis (2023: 3,406,282 unAts), and nil units in Sarasin's Income and Reserves Fund (2023.. 603,802 units}, all at market value (combined original cost: £6,241,215 (2023- £6,382,064). The Charity includes the investment in CISI(Servi¢es) Ltd, as reported in nole 9. INTANGIBLE FIXED ASSETS Intangible flxed assets represent the pU￿has¢ of the membership and intellectual property of the InstI￿te of Financial Planner8 in November 2015. This intangible f￿ed asset is Slill in use but fully written down. The value at the start and end of the period was £nil (prior year £nil) and ihere was £nil amortisation (prior year £nil). SUBSIDIARY COMPANIES On l March 1994, the Charity's predecessor established a wholly-owned subsidiary company, Securities & Investment Instituie (Services) Ltd, now known as Chartered Institute for Securities & Investment (Services) Ltd. The subsidiary company is registered in England and Wales. The purpose of Chartered Instithte for Securities & Inveqtment (Services) Ltd is to cary on the trading activities of the Chartered Instituie for Securities & Investment, which comprises bespoke training COUTses and non-charitsble activittes carried out on behalf of the Chartered Institute for Securities & tnvestsnent. Subsidiary operations were also inco￿Orated in Singapore (3 April 2006), in India (8 July 2006), in the People's Republic of China (20 August 2007). The companies in India and Dubai are liaison offi¢es which represenl and promote th¢ interests of Chartered Institute for Securities & Investment. Chartered InstiWte for Securities & Investment (Singapore) PTE Ltd began trading during the year to 31 March 2007 but does not cumtly trade and Securities & Investment Instilute {China} received its WOFE (wholly owned foreign enterprise) licence in January 2008. but does not Cu￿entlY trdde. In January 2011 an office was registered in Sri Lanka. This Company acts as liaison offjce, in the same way as the on¢s in India and Dubai, and does not trade in its own right. In January 2016, a representative office was registered in the Philippin¢s. This company do&$ not trade in its own right. 27 CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT Notes to the financial statements year ellded 31 March 2024 (Continued) In June 2018, a wholly owned subsidiary was established in Cyprus. This company did not trade during the year. There are also the following wholly-owned dorniant companies in the group.. Institute of Wealth Management Ltd Securities & Investment Institute The Compliance Institute The Financial Planning Association Limited Financial Planning (CISI) Limited FPSB (UK) Lijnited All companies were incorporated in England and Wales. No details of the incomelexpenditure and assetslliabilities of the overseas subsidiaries are included in the figures below which relate to the UK services company (Chartered Institute for Securities & Investment {S¢rvices) Ltd), Any income and funding costs of the overseas subsidiaries are reflected in the Charity and the group figures. Inveslment in Subsidiary Chartered Institrjte for Securities & Investments (Services) Ltd. Cost at 31 March 2023 and 31 March 2024 loo 000 For the year ended 31 March 2024, the subsidiary's profit and loss ￿COUnt showed.. 2024 2023 Income Expenses Profit for the year before gift aid and taxation 84,490 11,061 95,55] 200,640 (111,668) 88,972 Gift aid payments Loss for the yerdr (100,932) (5,381) (182,826) (93.854) Its balance sheet showed.. Current assets Current liabilities Funds 293,748 386,788 87,660 299,128 293,748 28 CHARTERED INSTITUTE FOR SECUIUTIES & INVESTMENT Notes to the financial statements year ended 31 March 2024 (Continued) io. DEBTORS 2024 Group 2023 Charity Group Charity Trade debtors Other debtors Prepayments and accrued income 2,825,478 273,058 915,341 4,013,877 2,825,478 273,058 915.341 4,013.877 3,171,845 203,332 813,698 4,188,875 3,171,845 203,332 813,698 4,188,875 11. CREDITORS Amounts falling due within one year 2024 2023 Group Charity Group Chirity Subscriptions received in advance Trade creditors 2,439,558 9,864 539,625 171,308 3,769.415 2,439,558 9,864 539,625 171,308 3,769,415 291,965 2,633,139 119,920 532,464 44,852 4,149,417 2,633,139 119,920 532,464 44,852 4,149.417 384,787 Other tsxes and S￿la] security Othcr creditors ALcrual8 and d¢fcrwd incorne Amounts owed to subsidiary undertaking 6,929,770 7,221,735 7.479.792 7,864,579 Amounts falling due after n)ore than one y&qr 2024 2023 Group Charlty Group Charity Accruals and deferred income 265,670 265,670 496,804 496,804 Amounts due over one year related to deferred bonuses (£122,092) and to the apportionment of the rent-free period on the premises at 20 Fenchurch Street {£143,578). Income received in advance during ihe year can be 8ummati8ed follows: BalAnce brought forward at l April 2023 Balance carried forward at 31 March 2024 Reeelved durlng the year Income recognised during year Membership subscriptions (including received from students) (￿alIficatiOnS & development Publications & conferences Other income 2,667,089 1,477,398 148,147 5.508.636 9.150.669 2,978.027 836.494 18,473.826 2.467,049 1,490,613 159,823 5,708,676 9.137.454 2.966.351 836.494 18,648,975 4,292,634 4,117,485 29 CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT Notes to the fmancial statements year ended 31 March 2024 (Continued) 12. OPERATING LEASES Future minimum operating lease payments are as follows: 2024 Land and 2023 Land and Buildings Buildings Within one year Between one and five years Over 5 years 1,320,784 1,289,869 1,092,733 2,146,262 During th¢ year the Charity spent a total of £1,181,533 (2023- £1,152,909) on operating lease commitments. The total future minimum lease income under non-cancellable commercial propety leases is as follows.. 2024 Land and 2023 Land and BuildinES Buildings Within one year Between one and five years Over 5 years 402,203 363,349 402,203 765,552 13. RECONCILL4TION OF ￿'ET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 2024 2023 Net income for the reporting period (as per the Statement of Financial Activities) Adjustments for.. Net investsn¢nt (gains) I losses Dividends, Interest and rents from investhienls Depreciation and amortisation (Increase) / Decrease in stocks Decrease / (Increase) in debtors D￿rease in creditors ,916,250 2,146,601 (980,133) (504,289) 155,783 (1,463) 174,998 (781,156) 365,334 (240,593} 105,746 2.789 (902.337) (97,150) Net cash {used) / provided by operating activities (20,010) 1,380,390 14. RELATED PARTY TRANSACTIONS There have been no related party transactions that require disclosure other than transactions with the subsidiary company, Chartered Institute for Securities & Investment (Servi¢e%) Limited, as set out below: In 2023124 the Charity charged CISI Services Limited for saliry costs as the costs of stsff are borne by Chartered Institute for Securities & Investment and are recharged to thc C(￿panY monthly based on an estimate of activity. This amounts lo £2,652 in the year (2022123: £2.652). CISI Services made a donation under gift during the year of £100,932 (2022123: £182,826). At the year end the Cbarity owed CISI Services Limited £291,965 (2022123.. £384,787). During the year, the Charity paid expenses on behalf of its overseas offices totslling £1.370,573 (2022123.. £1, 360,975). At the year end the Charity was owed £1,407,181 (2022123: £1.407.181) by Chartered Institute for Securities and Investment (Singapore) Ple. Ltd. 30 CHARTERED INSTITUTE FOR SECURITIES & INVESTMENT Notes to the financial statements year ended 31 March 2024 (Continued) 15. FINANCIAL INSTRUMENTS Group 2024 Cbarity 2024 2023 2023 Carrying amount of financfial assetsAiabiliti¢s Financial assets that art measured at amortised cost Financial liabilities that are measured at amortised cost Financial assets measured at fair value through the Statement of Financial Activities 13,904,822 14,155,795 13,904,822 14,155,795 {2,446,315) (3,018,439) (2,446,315) {3,018,439) 10,783,034 9,662,052 10,783,034 9,662,052 31