Principles and Practices of Financial Management

How we manage our funds

As we offer with-profits investments, we also publish PPFM documents that show you just how these funds are managed.
 
In this section, you’ll find our PPFM documents, along with guides to help you understand them. The PPFM and guides that will apply to you will depend on who issued your policy.

Choosing the relevant PPFM

Policy issued by Date issued Relevant documents

Royal London, Refuge Assurance (under brand name Refuge Assurance, Refuge Life, United Friendly), United Friendly Insurance (under brand name United Friendly)

 Anytime Royal London PPFM appendix 2
Royal London Scottish Life After 30 June 2001 Royal London PPFM appendix 2
 Scottish Life Before 1 July 2001 Scottish Life before 1 July 2001
The 'Scottish Life' PPFM applies to all with profits policies issued by Scottish Life before 1 July 2001. If you increased your regular premiums or paid additional lump sum premiums from 1 July 2001 then the 'Royal London' PPFM applies to the part of your policy covered by these premiums.
 
Phoenix Life Assurance Limited  Anytime If your policy was previously with Phoenix Life Assurance Limited, the PLAL with profits sub-fund PPFM applies to your policy.
Royal Liver Assurance Limited  Anytime The Royal Liver Sub-Fund PPFM applies to your policy. This includes policies under the Caledonian brand.
Co-op Insurance Society Anytime

If your policy is a Stakeholder pension plan, the CIS With-Profits Stakeholder Fund PPFM applies.

For other individual personal pensions and unitised with-profits pension plans, the CIS With-Profits Pension Fund PPFM applies.

For all other with-profits policies, the CIS Long Term Business Fund PPFM applies.

Royal London PPFM documents

This covers all with profits policies issued by Royal London including those originally issued under the United Friendly and Refuge Assurance brands. It also covers with profits business written under the Scottish Life brand from 1 July 2001. This includes increases in regular premiums or additional lump sum premiums ('top ups') made from 1 July 2001 to Scottish Life with profits policies issued before that date.
 
 
What has changed in the latest version of the Royal London PPFM?
 
We have made some changes to the Practices to reflect our current investment strategy, and to narrow some of the ranges that we aim for payouts to fall within.

Royal London Guides

PPFM Guide 1 -This guide is appropriate if you have an Ordinary Branch conventional with profits policy that was taken out with Royal London before 1 January 2001.
 
PPFM Guide 2 - This guide is appropriate if you have an Ordinary Branch conventional with profits policy that was taken out with Refuge Assurance or United Friendly before 1 January 2001.
 
PPFM Guide 3 - This guide is appropriate if you have a unitised with profits policy (including an Individual Savings Account (ISA) invested in with profits) that was taken out with Royal London or with Refuge Assurance. A German translation of this Guide is available for those Royal London European With Profits Bond and Royal London With Profits Bond Plus policyholders, whose policies are administered by RL360°.
 
PPFM Guide 4 - This guide is appropriate if you have an Industrial Branch with profits policy. By this we mean a policy where you originally had a premium receipt book and normally paid your premiums to a Customer Services Representative.
 
PPFM Guide to unit-linked policies with ProfitShare - The guide is appropriate if you have a unit-linked policy with a ProfitShare Account.
 
PPFM Guide 6 - This guide is appropriate if you have a Royal London Funeral Investment Plan taken out after 31 December 2014 or a Scottish Life branded With Profits policy that was taken out after 30 June 2001. You should also read this guide if you have increased your premiums or paid additional single premiums to a Scottish Life with profits policy after 30 June 2001.

Scottish Life

 
This relates to with profits business written in the Scottish Life fund before 1 July 2001. This is now a closed fund. Increases in regular premiums or additional lump sum premiums ('top ups') made from 1 July 2001 to these policies are invested in the Royal London fund so the principles and practices detailed in the Royal London PPFM will apply to these premiums.
 
What has changed in the latest version of the Scottish Life PPFM?
 
We have made a change to the Practices to permit more freedom to invest in new asset types subject to following the standard approval process. There have been a few small updates to other PPFM Practices to update terminology as well.

Scottish Life Guides

PPFM Guide 5 -This guide is appropriate if you have a with profits or deposit administration policy that was taken out with Scottish Life before 1 July 2001. Your policy is invested in The Scottish Life Fund.
 
PPFM Guide 6 - This guide is appropriate if you have a with profits policy that was taken out after 30 June 2001 that originally used the ‘Scottish Life’ branding. You should also read this guide if you have increased your premiums or paid additional single premiums to a Scottish Life with profits policy after 30 June 2001. Your policy is invested in the Royal London fund.

PLAL

 
This is a closed fund that relates to with profits business previously with Phoenix Life Assurance Limited.
 
What has changed in the latest version of the PLAL PPFM?
 
We have made a change to the Practices to permit more freedom to invest in new asset types subject to following the standard approval process. There have been a few small updates to other PPFM Practices to update terminology.

PPFM Guide 7

PPFM Guide 7- This guide is appropriate if you have a with profits policy previously with Phoenix Life Assurance Limited. Your policy is invested in the PLAL With-profits Sub-Fund.

Your With Profits Policy

Your With Profits Policy (YWPP) - This guide offers supplementary information on the investment performance of your with profits policy.

Royal Liver

Royal Liver sub-fund PPFM

This is a closed fund that relates to with profits business previously with Royal Liver Assurance Limited.

What has changed in the latest version of the Royal Liver sub-fund PPFM?

We have made a change to the Practices to permit more freedom to invest in new asset types subject to following the standard approval process. There have been a few small updates to other PPFM Practices to update terminology etc.

What charges for guarantees are applied to policies in the Royal Liver sub-fund?

We have produced this document that sets out the charges for guarantees that currently apply.

Proposed transfer of business to Royal London DAC, a subsidiary of Royal London

We are proposing to transfer business sold in Ireland and Germany to Royal London DAC, a subsidiary of Royal London. This includes some business in the Royal Liver Sub-Fund. The transfer is expected to happen on 7 February 2019. If and when the proposed transfer happens the Royal Liver Sub-Fund PPFM will be updated. This will involve changes to the Principles and Practices. More information about the proposed transfer and the proposed changes to the Royal Liver Sub-Fund PPFM can be found on our transfer website.
 

Royal Liver Guides

PPFM Guide 8 - This guide is appropriate if you have a Conventional with profits policy that was administered by Royal Liver Assurance Limited prior to 1 July 2011. This includes Conventional with profits policies written by Royal Liver or under the Caledonian, Friends’ Provident or Irish Life brands. Your policy is invested in the Royal Liver Sub-Fund.
 
PPFM Guide 9 - This guide is appropriate if you have a Unitised with profits policy that was administered by Royal Liver Assurance Limited prior to 1 July 2011. This includes Unitised with profits policies written by Royal Liver or under the Caledonian, Friends’ Provident or Irish Life brands. Your policy is invested in the Royal Liver Sub-Fund.

RLCIS

RLCIS OB & IB Fund PPFM - Documents for RLCIS with profits business excluding those pension and stakeholder policies covered by the RLCIS With-Profits Pension Fund PPFM or the RLCIS With-Profits Stakeholder Fund PPFM.
 
RLCIS With-Profits Pension Fund PPFM - Documents for RLCIS with profits individual personal pension business excluding those pension and stakeholder policies covered by the RLCIS OB & IB Fund PPFM or the RLCIS With-Profits Stakeholder Fund PPFM.
 
RLCIS With-Profits Stakeholder Fund PPFM - Documents for RLCIS stakeholder pension plans.
 
What has changed in the latest version of the RLCIS PPFM documents?
 
We have made a change to the Practices to permit more freedom to invest in new asset types subject to following the standard approval process. There have been a few small updates to other PPFM Practices to update terminology.

RLCIS guides

Endowment Guide - This guide is appropriate if you have a with profits Endowment Assurance policy (including Low Cost Endowment (Mortgage Endowment) Assurance policies) that was taken out with RLCIS. Your policy is invested in the RLCIS OB & IB Fund.

Whole Life Guide - This guide is appropriate if you have a with profits Whole Life Assurance policy that was taken out with RLCIS. Your policy is invested in the RLCIS OB & IB Fund.

Funeral Investment Guide - This guide is appropriate if you have a with profits Funeral Investment or Funeral Pre-Payment Plan policy that was taken out with RLCIS. Your policy is invested in the RLCIS OB & IB Fund.

Platinum Products Guide - This guide is appropriate if you have a with profits Platinum Bond Plus or Platinum Plus policy that was taken out with RLCIS. Your policy is invested in the RLCIS OB & IB Fund.

Personal Pension and SERPS Guide - This guide is appropriate if you have a with profits Personal Pension policy (including policies with voluntary contributions and/or SERPS contributions) or a with profits Free Standing Additional Voluntary Contribution (FSAVC) policy that was taken out with RLCIS. Your policy is invested in the RLCIS OB & IB Fund.

Insured Pensions (Individual) Guide - This guide is appropriate if you have a with profits Insured Pension policy from an Individual Arrangement or a Group Money Purchase plan that was taken out with RLCIS. Your policy is invested in the RLCIS OB & IB Fund.

Insured Pensions (Group) Guide - This guide is appropriate if you have a with profits Insured Pension policy from a Group Defined Benefit Scheme that was taken out with RLCIS. Your policy is invested in the RLCIS OB & IB Fund

Option 32 Pension Transfer Guide - This guide is appropriate if you have a with profits Option 32 Pension Transfer policy that was taken out with RLCIS. Your policy is invested in the RLCIS OB & IB Fund.

Pensions Annuity (Table P) Guide - This guide is appropriate if you have a with profits Pensions Annuity policy (Table P) that was taken out with RLCIS. Your policy is invested in the RLCIS OB & IB Fund.

AVC Pensions Extra Guide - This guide is appropriate if you have a with profits Additional Voluntary Contributions (AVC) Pensions Extra policy that was taken out with RLCIS. Your policy is invested in the RLCIS OB & IB Fund.

Individual Personal Pension Guide - This guide is appropriate if you have a with profits Individual Personal Pension policy that was taken out with RLCIS. Your policy is invested in the RLCIS With-Profits Pension Fund.

Unitised With-Profits Pension Plans Guide - This guide is appropriate if you have a unitised with profits pension policy (other than individual personal pension and stakeholder pension plans) that was taken out with RLCIS. Your policy is invested in the RLCIS With-Profits Pension Fund.

Stakeholder Pension Guide - This guide is appropriate if you have a with profits Stakeholder Pension policy that was taken out with RLCIS. Your policy is invested in the RLCIS With-Profits Stakeholder Fund.

Terms of reference for with profits committee

Investment mix and investment returns

Supplementary information on investment mix and investment returns for with-profits policies in the:
 

Directors' reports on compliance

For any questions or information about PPFMs, please contact ppfm@royal-london.com.