SPPP Sprott Physical Platinum and Palladium Trust

  

 

UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 40-F

 

☐

REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

 

OR

 

☑

ANNUAL REPORT PURSUANT TO SECTION 13(a) OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended December 31, 2022

Commission file number 001-35765

 

SPROTT PHYSICAL PLATINUM AND PALLADIUM TRUST

(Exact name of Registrant as specified in its charter)

 

Not Applicable

(Translation of Registrant’s Name into English (if applicable))

 

Province of Ontario, Canada (Province or other jurisdiction of incorporation or organization)

1040 (Primary Standard Industrial Classification Code Number (if applicable))

Not Applicable (I.R.S. Employer Identification Number (if applicable))

  

Suite 2600, South Tower

Royal Bank Plaza

200 Bay Street

Toronto, Ontario

Canada, M5J 2J1

(Address and telephone number of Registrant’s principal executive offices)

 

Anthony Tu-Sekine

Seward & Kissel LLP

901 K Street NW, Suite 800

Washington, DC 20001

(202) 737-8833

(Name, address (including zip code) and telephone number (including area code) of agent for service in the
United States)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol		Name of each exchange on which registered
Units		SPPP		NYSE Arca

 

Securities registered pursuant to Section 12(g) of the Act: None

 

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

 

For annual reports, indicate by check mark the information filed with this Form:

 

☑  Annual Information Form        ☑  Audited annual financial statements

 

Indicate the number of outstanding shares of the Registrant’s classes of capital or common stock as of the close of the period covered by the annual report:

9,622,518

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

 

Yes   ☑

No   ☐

 

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).

 

Yes   ☑

No   ☐

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.

 

Emerging growth company ☐

 

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act.☐

 

 

Indicate by check mark whether the Registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

 

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

 

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

 

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

 

 

 

ANNUAL INFORMATION FORM

 

The Annual Information Form of the Registrant for the fiscal year ended December 31, 2022 is filed as Exhibit 99.5 to this annual report on Form 40-F, and is incorporated herein by reference.

 

AUDITED FINANCIAL STATEMENTS

 

The Audited Financial Statements of the Registrant for the fiscal year ended December 31, 2022 are filed as Exhibit 99.6 to this annual report on Form 40-F, and are incorporated herein by reference.

 

MANAGEMENT'S DISCUSSION AND ANALYSIS

 

Management's Discussion and Analysis for the fiscal year ended December 31, 2022 is filed as Exhibit 99.6 to this annual report on Form 40-F, and is incorporated herein by reference.

 

CERTIFICATIONS

 

See Exhibits 99.1, 99.2, 99.3 and 99.4 to this annual report on Form 40-F.

 

DISCLOSURE CONTROLS AND PROCEDURES

 

As of the end of the period covered by this report, an evaluation was carried out under the supervision of and with the participation of the Registrant’s management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended). Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the design and operation of these disclosure controls and procedures were effective in ensuring that information required to be disclosed by the Registrant in reports that it files with or submits to the U.S. Securities and Exchange Commission is recorded, processed, summarized and reported within the time periods required.

 

No changes were made in the Registrant’s internal control over financial reporting or in other factors during the period covered by this annual report on Form 40-F that have materially affected or are reasonably likely to materially affect the Registrant’s internal control over financial reporting.

 

MANAGEMENT’S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

 

Management’s report on internal control over financial reporting is filed as exhibit 99.7 to this annual report on Form 40-F, and is incorporated herein by reference.

 

ATTESTATION REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

The attestation report of KPMG LLP on the Registrant’s internal control over financial reporting as of December 31, 2022 accompanies the Audited Financial Statements of the Registrant for the year ended December 31, 2022 and is filed as Exhibit 99.6 to this annual report on Form 40-F, and is incorporated herein by reference.

 

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

 

None.

 

NOTICE PURSUANT TO REGULATION BTR

 

None.

 

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AUDIT COMMITTEE FINANCIAL EXPERT

 

Pursuant to the provisions of Rule 10A-3 of the Securities Exchange Act of 1934, as amended, and Rule 5.3 of NYSE Arca, the Registrant is not required to have, and does not have, an audit committee.

 

CODE OF ETHICS

 

Under the applicable provisions of Rule 5.3 of NYSE Arca, the Registrant is not required to adopt, and the Registrant has not adopted, a code of ethics.

 

PRINCIPAL ACCOUNTANT FEES AND SERVICES

 

KPMG LLP, Toronto, ON, Canada, Auditor Firm ID: 85, have been the auditors of the Registrant since January 1, 2016. The following table presents fees for professional services rendered by KPMG LLP to the Registrant for the audit of the Registrant’s financial statements for years ended December 31, 2022 and 2021, and fees billed for other services rendered by KPMG LLP during periods from January 1, 2022 to December 31, 2022, and from January 1, 2021 to December 31, 2021. The dollar values disclosed in the following table are in Canadian dollars and exclude applicable taxes.

 

		Year Ended				Year Ended
		December 31,				December 31,
		2022				2021
Audit Fees(1)		$	165,500			$	120,000
Audit-related Fees			—				—
Tax Fees(2)			12,473				12,133
All Other Fees			—				—
Total		$	177,973			$	132,133

---

NOTES:

 

(1)

Consist of fees related to statutory audits, related audit work in connection with registration statements, prospectus filings and other filings with various regulatory authorities, quarterly reviews of interim financial statements, and French translation.

(2)

Consist of fees for tax consultation and compliance services, including indirect taxes.

 

OFF-BALANCE SHEET ARRANGEMENTS

 

The Registrant has no off-balance sheet arrangements as defined by Form 40-F under the Securities Exchange Act of 1934, as amended.

 

TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS

 

The Registrant has no long-term contractual obligations to be disclosed pursuant to General Instruction B.12 of Form 40-F.

 

IDENTIFICATION OF THE AUDIT COMMITTEE

 

Pursuant to the provisions of Rule 10A-3 of the Securities Exchange Act of 1934, as amended, and Rule 5.3 of NYSE Arca, the Registrant is not required to have, and does not have, an audit committee.

 

FORWARD-LOOKING STATEMENTS

 

A number of statements in the documents incorporated by reference in this Form 40-F constitute “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Please refer to disclosure under the heading “Cautionary Statement Regarding Forward-Looking Statements” in the Annual Information Form of the Registrant for the year ended December 31, 2022, dated March 17, 2023, incorporated herein and forming an integral part of this document, for a discussion of risks, uncertainties and assumptions that could cause actual results to vary from those forward-looking statements.

 

INTERACTIVE DATA FILE

 

The Interactive Data File for the fiscal year ended December 31, 2022 is filed as Exhibit 101 to this annual report on Form 40-F, and is incorporated herein by reference.

 

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UNDERTAKING AND CONSENT TO SERVICE OF PROCESS

 

The Registrant undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Commission staff, and to furnish promptly, when requested to do so by the Commission staff, information relating to the securities in relation to which the obligation to file an annual report on Form 40-F arises or transactions in said securities.

 

Consent to Service of Process

 

We have previously filed a Form F-X in connection with the class of securities in relation to which the obligation to file this report arises.

 

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EXHIBIT INDEX

 

99.1		Certificate of the Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002.
99.2		Certificate of the Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002.
99.3		Certificate of the Chief Executive Officer under Section 906 of the Sarbanes-Oxley Act of 2002.
99.4		Certificate of the Chief Financial Officer under Section 906 of the Sarbanes-Oxley Act of 2002.
99.5		Annual Information Form of the Registrant dated March 17, 2023.
99.6		Audited financial statements of the Registrant and notes thereto for the year ended December 31, 2022 and Reports of Independent Registered Public Accounting Firm thereon dated March 21, 2023, and Management Report of Fund Performance of the Registrant for the year ended December 31, 2022.
99.7		Management’s Report on Internal Control Over Financial Reporting.
99.8		Attestation Report of KPMG LLP (included in Exhibit 99.6).
99.9		Consent of KPMG LLP, Independent Registered Public Accounting Firm.
101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema
101.CAL		XBRL Taxonomy Extension Calculation Linkbase
101.DEF		XBRL Taxonomy Extension Definition Linkbase
101.LAB		XBRL Taxonomy Extension Label Linkbase
101.PRE		XBRL Taxonomy Extension Presentation Linkbase
104		Cover page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

 

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SIGNATURES

 

Pursuant to the requirements of the Exchange Act, the Registrant certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this annual report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	SPROTT PHYSICAL PLATINUM AND PALLADIUM
	TRUST
	By:	Sprott Asset Management LP, by its general partner
		Sprott Asset Management GP Inc., as manager of
		Sprott Physical Platinum and Palladium Trust
Date: March 21, 2023	By:	/s/ John Ciampaglia
		John Ciampaglia
		Chief Executive Officer

 

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