b'Corporate governance report continuedInternal controls Investor relationsThe Board acknowledges its overall responsibility for the GroupsThe Group is committed to developing and maintaining open channels system of internal controls and the ongoing review of theirof communication with its shareholders and the mercia.co.uk website effectiveness. These controls are designed to safeguard the Groupsprovides up-to-date information on the Group. The Executive Directors assets and are considered appropriate for an AIM company of the sizeare available to meet with shareholders and sector analysts at regular and complexity of Mercia Asset Management. However, systems ofintervals throughout the year and the Non-executive Directors are also internal control can only identify and manage risks, not eliminate them.available for informal discussions if required. Shareholders will have an Consequently, such controls do not provide an absolute assuranceopportunity to raise questions with the Board at the Groups Annual against misstatement or loss. The main features of the Groups internalGeneral Meeting, which this year will be held on 24 September 2020.controls system are as follows:A control environment exists through the close daily management ofIan R Metcalfethe business by the Executive Directors. The Group has a definedNon-executive Chairorganisation structure with delineated investment approval limits.13 July 2020Controls are implemented and monitored by senior staff with the necessary qualifications and experience. A list of matters specifically reserved for Board approval. Regular detailed management reporting with comparisons and explanations of any material variances against budget or forecasts. Financial and custody of asset controls operate to ensure that the assets of the Group are safeguarded and that appropriate accounting and FCA related records are maintained. Share dealing, anti-bribery and whistleblowingThe Group has adopted a share dealing code in conformity with the requirements of Rule 21 of the AIM Rules. All employees, including new joiners, are required to agree to comply with the code. The Group has also adopted anti-bribery and whistleblowing policies, which are included in the Groups internal policies, communicated to all employees. The Group operates an open and inclusive culture and employees are encouraged to speak up if they have any concerns. Theaim of such policies is to ensure that no blurred lines exist and to encourage all employees, regardless of seniority, to bring matters which cause them concern to the attention of either the Executive or Non-executive Directors. The Group has also adopted the requirementsof the Market Abuse Regulations, to the extent required by AIM companies.64 Mercia Asset Management PLCAnnual Report and Accounts 2020'