Principles and Practices of Financial Management
We offer a number of different with-profits products. Please read through the following information to identify which guide is relevant to your clients.
Every company offering with-profits investments has its own set of Principles and Practices of Financial Management (PPFM).
A PPFM documents a company's approach to the financial management of it’s with-profits investments to ensure that its customers are treated fairly.
The Principles cover the company's high-level approach to the management of with-profits investments. The Practices describe in greater detail how the Principles are applied.
From 1st January 2006, the Financial Services Authority required all life insurance firms and friendly societies that accept with profits business, and EEA insurers that accept with-profits business in the UK, to provide their with-profits policyholders and potential customers with a consumer friendly version of the Principles and Practices of Financial Management (CFPPFM). This forms part of the Financial Services Authority's "Treating With-Profits policyholders fairly" campaign.
Our CFPPFM is called "Your guide to how we manage our With-Profits fund".
Depending on what with-profits product your client has, or are considering investing in there are different versions of the CFPPFM.
Principles & Practices of Financial Management
All-in-1 Investment Bond and Flexible Guarantee Bond (CFPPFM)
If your client has, or you are recommending a Flexible Guarantee Bond you will require this version. This is also appropriate for your clients that have an All-in-1 Investment Bond with us.
Pension Income Plus Annuity
If your client has a Pension Income Plus Annuity with us, this is the version you'll need.
Conventional with-profits (CFPPFM)
If your client took out a conventional with-profits policy with us before 1997 or they have a With Profits Pension Annuity, this version of the guide applies to you.
Unitised with-profits (CFPPFM)
If your client has a unitised with-profits plan, for example a Tax Free Savings Plan or MAX, you will require this version. This is also appropriate for clients that have a With Profits Growth Bond, With Profits Income Bond or With Profits Investment Bond with us.
Older products
If you see a CFPPFM for a product no longer open for new business, and need policy information for your client, please contact us.
For information on the Pension Income Plus Annuity, please use our annuity support teams.