The mortgages and investments firm commissioned AKG, an actuarial consultancy firm, to report on its financial strength and security.
AKG confirmed that the company’s tier one capital ratio – forecast to be in excess of 20% at all times – compares very favourably with the large banks’ tier one ratio of around 10%.
The report said Castle Trust “appears more than adequately capitalised for the business it intends to undertake”.
AKG also said the senior management team at Castle Trust has “excellent credentials”, having all previously held senior positions at global financial institutions. It added that the “risk framework and philosophy is well regarded by AKG”.
Castle Trust chief executive officer Sean Oldfield said: “As a new business entering the financial services market with innovative products, this due diligence and financial strength assessment from AKG has been very well received by our major intermediary partners. We are delighted to get such a vote of confidence in the management, the business model and the product design.”
AKG managing director Guy Vanner said: “Financial advisers have to consider the financial strength of organisations they deal with and AKG's due diligence and financial strength assessment is designed to meet their information needs.
“This is the first time the investments and mortgage solutions proposed have been brought together in a single business and a significant amount of work has been undertaken to establish that the capital position is appropriate with suitable risk and governance structures in place.”
