Annual Report for the year ended 31 December 2008

2. FinanCial instRUments and RisK manaGement (CONTINuED)
(e) Capital Risk Management
consistent with others in the industry the Group manages capital on the basis of regulatory capital in accordance with pillar 1 and pillar 2.
capital adequacy and the use of regulatory capital are monitored daily by the Group’s management, employing techniques based on the guidelines developed
by the Basel committee and the european community Directives, as implemented by the Financial services Authority, for supervisory purposes. compliance
with FsA regulatory requirements was maintained throughout the year.
The Group has an internal capital Adequacy Assessment process (commonly known as the icAAp), which it uses to manage regulatory capital. This
Assessment takes into account the risk profile and future plans of the business. under this process the Group is satisfied that there is either sufficient capital
to absorb potential losses or that there are mitigating controls in place to prevent the risks occurring.
The risk Department includes commentary on required and available capital in its monthly risk report to the Group and in the risk committee pack.
The commentary highlights any changes to pillar 1 or 2 numbers and also any expected impact from the anticipated business initiatives.
Where significant business initiatives are planned, the effects on the risk profile of the Group and therefore its capital requirement are considered as part
of the business plan.
Further details regarding the Group’s capital adequacy can be found in its pillar 3 disclosures at www.evgplc.com/otherinformation.aspx.
Fair value of financial instruments
The carrying values of assets and liabilities not held at fair value (cash and cash equivalents, trade receivables, counterparty receivables, other receivables,
and trade and other payables) are not significantly different from fair value.
3. seGment RePoRtinG
By business segment
The Board monitors and reviews the operating performance of the Group by subsidiary. The parent is a holding company for its subsidiaries and the Board
reviews the performance of its subsidiaries separately from the business segment categories disclosed below. The chief executive’s report and Financial
review on pages 4 to 15 highlight the detailed breakdown of these business segments by entity.
investment banking and markets in the current year refers to the business carried out in evolution securities limited, evolution securities china limited,
evolution Watterson Asia securities limited and evolution securities (us) inc. private client investment management refers to private client investment management
under the Williams de Broë brand and includes WDB capital uK equity Fund limited. other activities refer to the central administrative, shared services and
holding company functions, combined with the profits on, the legacy fixed asset investment portfolio.
2008 2008
Continuing Discontinued 2008 2007
operations operations Total Total
£'000 £'000 £'000 £'000
TOTAL ASSETS
investment banking and markets 79,448 4,771 84,219 157,684
private client and asset management 58,078 – 58,078 38,073
other 84,993 – 84,993 64,725
222,519 4,771 227,290 260,482
2008 2008
Continuing Discontinued 2008 2007
operations operations Total Total
£'000 £'000 £'000 £'000
TOTAL LIABILITIES
investment banking and markets (47,766) (595) (48,361) (86,916)
private client and asset management (27,425) – (27,425) (13,474)
other (4,290) – (4,290) (4,820)
(79,481) (595) (80,076) (105,210)
notes to tHe FinanCial statements CONTINuED
FOR THE YEAR ENDED 31 DECEMBER 2008
54 The evoluTion Group plc AnnuAl reporT & AccounTs 2008