Overall control environment

The Audit Committee is responsible for monitoring the internal control and risk management systems related to the financial reporting process on an ongoing basis.
The internal control and risk management systems are designed to mitigate rather than eliminate the risks identified in the financial reporting process. Internal controls related to the financial reporting process are established to mitigate, detect and correct material misstatements in the financial statements.

Risk assessment

The risk assessment process related to financial reporting is conducted annually. Significant transactions, balances and changes to accounting standards are identified. The associated risks are identified based on the evaluation of the materiality of the impact and the likelihood of the identified risks occurring.

Control activities

Financial controls are also in place in order to enable the Board to meet its responsibilities regarding the integrity and accuracy of the Company’s accounting records. The Board delegates this responsibility to the Administrator who provides the Board with regular updates on the Company’s net asset value, income statement and cash balances.

Monitoring

The monitoring of the internal control and risk management systems related to financial reporting is performed by the Audit Committee. 

Related party transactions

The responsibility of identifying relationships or potential transactions with related parties has been delegated to the Company’s Investment Adviser, JZAI. The Investment Adviser will report on a regular basis to the Board. The Board will determine if shareholder support is appropriate to authorise the transaction. 

Foreign Account Tax Compliance Act

Under the US law commonly known as the “Foreign Account Tax Compliance Act,” as modified by an intergovernmental agreement between the United States and Guernsey (and Guernsey law enacted in furtherance thereof) (together, “FATCA”), the Company is required, among other things, to determine the identity of the owners of its securities and report to the government of Guernsey, for on-reporting to the US Internal Revenue Service, the identities and certain information about the holders of its securities that are US persons. Failure to comply with FATCA may result in severe sanctions for the Company. Although there can be no absolute assurance, the Company expects to be able to comply with its obligations under FATCA and intends to do so.