Pillar 3 disclosures (unaudited)



The Capital Requirements Directive ('CRD') requires firms to implement a framework which relates capital to risks and consists of three ‘Pillars’:

1. Pillar 1 sets out the minimum capital requirements for credit, market and operational risks;

2. Pillar 2 requires firms and supervisors to assess the need for additional capital for risks not adequately covered by Pillar 1 by implementing an Individual Capital Adequacy Assessment Process ('ICAAP'); and

3. Pillar 3 deals with disclosure requirements and is to complement the minimum capital requirements of Pillar 1 and the risk-based processes of Pillar 2. The disclosures are designed to promote market discipline by providing market participants with information to help them assess a firm's risk exposures and processes.

This Pillar 3 disclosure document is designed to meet the LLP's Pillar 3 obligations and has been approved by its Members and Executive Committee. Unless otherwise stated, all figures are as at 31 December 2017. Given the operations and the complexity of Hermes GPE, the Members do not consider it necessary to make disclosures more frequently than annually and on the Hermes GPE website in conjunction with the issuance of the Annual Report and financial statements.

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