Strategic report Governance Financial statements Other information SECTION 5: OTHER NOTES NOTES TO THE GROUP FINANCIAL STATEMENTS OTHER CONTINUED 5.7 Financial instruments continued The undiscounted liability in relation to leases is shown below. Also included within trade and other receivables in the statement of financial position are term deposits. These are deposits with UK licensed banks for a period of three months or greater, where Year ended Year ended the Group does not have immediate recall on the cash. The maximum amount of time that these 30 June 2021 30 June 2020 deposits are outstanding at year end is 13 months. £m £m Within one year 4.8 4.7 Cash is held with UK licensed banks. The credit risk on liquid funds is minimised by only depositing with In the second to fifth years inclusive 17.3 17.2 UK regulated banks and the Group takes a conservative approach to treasury management, carrying After five years 0.2 3.9 out regular reviews of all its banks’ and custodians’ credit ratings. Total minimum lease payments 22.3 25.8 As at the end of the reporting period, no financial assets were individually determined to be impaired. The Group has access to a revolving credit facility, with a UK bank. The facility allows the Group to The following table discloses the Group’s maximum exposure to credit risk on financial assets. draw up to £75 million (2020: £75 million) and is undrawn as at 30 June 2021. The facility incurs interest At 30 June At 30 June charges, consisting of a margin of 0.85% plus LIBOR per annum when drawn. 2021 2020 £m £m Credit risk Financial assets at amortised cost Cash and cash equivalents (including restricted cash) 445.3 235.9 The Group’s credit risk is spread over a large number of counterparties and customers. Trade and other receivables 748.6 666.4 The Group is exposed to credit risk from counterparties to securities transactions during the period Accrued income 46.7 64.6 Term deposits 60.0 230.0 between the trade date and the ultimate settlement date if the counterparty fails either to deliver Financial assets at fair valuethrough profit or loss securities or to make payment. Settlement risk is substantially mitigated as a result of the delivery Financial investments 0.9 0.5 versus payment mechanism whereby if a counterparty fails to make payment the securities would not Derivative financial assets – 0.1 be delivered to the counterparty. Therefore the risk exposure is to an adverse movement in market 1,301.5 1,197.5 prices between the time of trade and settlement. Conversely, if a counterparty fails to deliver securities, no payment would be made. The following table contains an analysis of financial assets that are past due but not impaired at the The trade receivables presented in the statement of financial position are net of expected end of the reporting period. An asset is past due when the counterparty has failed to make a payment credit losses. when contractually due. 169 Hargreaves Lansdown Report and Financial Statements 2021