b'60 Mercia Asset Management PLC Annual Report & Accounts 2022Corporate governance report continuedThe QCA Corporate Governance CodeSince the date of our Admission to trading on AIM in December 2014, we have embedded robust corporate governance as part of our culture. Mercias governance framework is not static and will continue to evolve over time.Set out below is how Mercia complies with the 10 key principles set out in the QCA Code.Governance principles Compliant Explanation Further readingDeliver1.Establish aThe Strategic Report section of this Annual Report clearlyPages 2 to 51 ofgrowth strategy and explains Mercias business model and strategy in detail,this Annual Report business modelincluding how it expects to create long-term value forand the AIM Rule 26 which promoteshareholders, currently through its Mercia 20:20 Vision. section of the Groups long-term valueA key strand of Mercias strategy is its investment policy,websitefor shareholders which is included in the AIM Rule 26 section of its website at www.mercia.co.uk.2.Seek toMercias Executive Directors participate in institutionalPages 4 and 57 ofunderstand and retail investor roadshows throughout the year andthis Annual Report and meetfollowing the announcement of its annual and interimand the AIM Rule 26 shareholderresults. The Groups Chair also meets with existingsection of the Groups needs andshareholders on occasion as do the Executive Directors.websiteexpectations Capital Market Days, to which all shareholders are invited, are held from time to time. The Group also uses its AGM as an opportunity to communicate with its shareholders.3.Mercias Annual Report identifies its key stakeholdersPages 28 to 35 of Take into account wider within the Responsible Business section and howthis Annual Report stakeholderseriously the Group takes its ESG responsibilities. and the AIM Rule 26 and socialsection of the Groups responsibilitieswebsiteand their implications for long-term success4.EmbedThe Groups approach to risk management togetherPages 42 to 51 ofeffective risk with the principal risks and uncertainties applicable tothis Annual Report management,Mercia, their possible consequences and mitigation areand the AIM Rule 26 considering bothset out in the Principal Risks and Uncertainties sectionsection of the Groups opportunitiesof this Annual Report. The Board reviews, evaluates andwebsiteand threatsprioritises risks to ensure that appropriate measures are in throughout theplace to effectively manage and mitigate those identified organisationfor risk tolerance (focusing on Mercia-specific internal, external and strategic risks) and risk appetite (specifically in terms of the Groups investing policy).Maintain5.Maintain theThe Board has a formal schedule of matters reserved forPages 57 to 59 ofa dynamicBoard as a well-its approval and is supported by the Nominations, Auditthis Annual Report managementfunctioning,and Risk and Remuneration Committees. All Directors areand the AIM Rule 26 framework balanced teamrequired to devote sufficient time to carry out their role.section of the Groups led by the Chair The Governance section of Mercias Annual Report detailswebsitethe composition of its Board and Committees. These are also included within the Investor Relations section of its website, under the Organisational Structure page.'