Annual Report & Accounts 2026
26
CORPORATE GOVERNANCE STATEMENT
INTRODUCTION
The Directors acknowledge the importance of high standards of corporate governance and are pleased to confirm that the Group has complied with the Quoted Companies Alliance Corporate Governance Code 2023 (the “QCA Code”) throughout the year.
BOARD EFFECTIVENESS
During the year, the Group has carried out an annual Board effectiveness review. As with previous years, this was an internal review led by the Chairman and involving all of the Directors. The Board believes that this approach is the most appropriate for a business of Keystone’s size and complexity with the disproportionate cost of an external facilitator not being justified in the context of our business. The format taken this year was for each Director to complete a questionnaire about the performance of the Board as a whole, commenting on the overall approach, effectiveness and any areas they felt that the Board could enhance its effectiveness. The results of this were then discussed in an open forum and considered.
No specific failings in effectiveness were identified and the review served to reinforce the Board’s focus on the monitoring and management of risk as well as the key drivers of growth in the business.
RISK MANAGEMENT AND INTERNAL CONTROLS Risk management is a key area of focus for the Board, which is responsible for maintaining a sound system of internal controls to safeguard shareholders’ investments and the Group’s assets. Such a system is designed to reduce and manage the risk of failing to achieve the Group’s objectives. It is designed to provide a reasonable assurance against material misstatement or loss. The Board has considered the need for an internal audit function and has concluded that, given the size and complexity of the Group, the internal control system currently in place is the most appropriate solution. The Board revisits this decision periodically.
The Board is responsible for the identification and evaluation of major risks faced by the Group and for determining the appropriate course of action to manage those risks. The Group maintains a risk register which the Board considers regularly. The risk register assesses both the risks and the controls in place to prevent the risk crystallising as well as any mitigation which would exist should they materialise. A summary of the principal risks and uncertainties, together with the relevant mitigation, is set out on pages 22 to 25 of this report.
The Group takes a proactive approach to risk management, which starts at the strategic level with the Group identifying areas of the law in which it will not operate. The Group then recruits to this risk profile. The recruitment process is controlled by the senior management team, who are qualified and experienced solicitors with many years’ experience of recruiting consultants to Keystone. The Group focuses on attracting experienced and well-qualified lawyers with a client following from highly respected law firms, thereby reducing the risk profile of the lawyer base.
As a law firm, Keystone is regulated by the Solicitors Regulatory Authority (“SRA”) as well as being subject to other legal regulation governing its industry and the economy as a whole (e.g. anti-money laundering legislation, data protection rules (“GDPR”) etc.). As such, the Group has a dedicated compliance function, led by the Group’s Compliance Officer and appropriately qualified staff, whose role it is to ensure compliance with all such regulation as well as handling any complaints or claims received from the Group’s clients. The structure of Keystone ensures that this department is wholly independent of the lawyers, whilst the “open door” collegiate culture of the Group ensures that lawyers are more than happy to seek support and guidance from the team where they identify issues of potential concern. This department reports to the Chief Executive, who is fully appraised of any regulatory matters being handled, complaints/claims made as well as the status of these, and the Board receives regular updates as to the status of any significant
CORPORATE GOVERNANCE STATEMENT
INTRODUCTION
The Directors acknowledge the importance of high standards of corporate governance and are pleased to confirm that the Group has complied with the Quoted Companies Alliance Corporate Governance Code 2023 (the “QCA Code”) throughout the year.
BOARD EFFECTIVENESS
During the year, the Group has carried out an annual Board effectiveness review. As with previous years, this was an internal review led by the Chairman and involving all of the Directors. The Board believes that this approach is the most appropriate for a business of Keystone’s size and complexity with the disproportionate cost of an external facilitator not being justified in the context of our business. The format taken this year was for each Director to complete a questionnaire about the performance of the Board as a whole, commenting on the overall approach, effectiveness and any areas they felt that the Board could enhance its effectiveness. The results of this were then discussed in an open forum and considered.
No specific failings in effectiveness were identified and the review served to reinforce the Board’s focus on the monitoring and management of risk as well as the key drivers of growth in the business.
RISK MANAGEMENT AND INTERNAL CONTROLS Risk management is a key area of focus for the Board, which is responsible for maintaining a sound system of internal controls to safeguard shareholders’ investments and the Group’s assets. Such a system is designed to reduce and manage the risk of failing to achieve the Group’s objectives. It is designed to provide a reasonable assurance against material misstatement or loss. The Board has considered the need for an internal audit function and has concluded that, given the size and complexity of the Group, the internal control system currently in place is the most appropriate solution. The Board revisits this decision periodically.
The Board is responsible for the identification and evaluation of major risks faced by the Group and for determining the appropriate course of action to manage those risks. The Group maintains a risk register which the Board considers regularly. The risk register assesses both the risks and the controls in place to prevent the risk crystallising as well as any mitigation which would exist should they materialise. A summary of the principal risks and uncertainties, together with the relevant mitigation, is set out on pages 22 to 25 of this report.
The Group takes a proactive approach to risk management, which starts at the strategic level with the Group identifying areas of the law in which it will not operate. The Group then recruits to this risk profile. The recruitment process is controlled by the senior management team, who are qualified and experienced solicitors with many years’ experience of recruiting consultants to Keystone. The Group focuses on attracting experienced and well-qualified lawyers with a client following from highly respected law firms, thereby reducing the risk profile of the lawyer base.
As a law firm, Keystone is regulated by the Solicitors Regulatory Authority (“SRA”) as well as being subject to other legal regulation governing its industry and the economy as a whole (e.g. anti-money laundering legislation, data protection rules (“GDPR”) etc.). As such, the Group has a dedicated compliance function, led by the Group’s Compliance Officer and appropriately qualified staff, whose role it is to ensure compliance with all such regulation as well as handling any complaints or claims received from the Group’s clients. The structure of Keystone ensures that this department is wholly independent of the lawyers, whilst the “open door” collegiate culture of the Group ensures that lawyers are more than happy to seek support and guidance from the team where they identify issues of potential concern. This department reports to the Chief Executive, who is fully appraised of any regulatory matters being handled, complaints/claims made as well as the status of these, and the Board receives regular updates as to the status of any significant