Principles and Practices of Financial Management: Scottish Widows plc
Our Principles
and Practices of Financial Management (PPFM)
is set out in sections covering different aspects of, for example, how we invest
your money and determine how much you get back. You can view or
download the entire 53-page document.
Our PPFM was first published on 30 April 2004. We made some changes
to the wording, partly in response to new FSA requirements in 30
June 2005 and some further amendments on 31 December 2005.
The PPFM is a technical document that has been prepared to enable a knowledgeable observer to understand the material risks and rewards from purchasing or holding a with-profits policy with Scottish Widows plc.
Underneath you can find some FAQs
about PPFM in shorter form, which may answer some of your questions. We have also produced Your guide to with-profits - a summary which you may find helpful.
Our annual PPFM Report
You can also
view or download our annual Report on Principles and Practices of Financial Management for 2007. This confirms that during 2007 we managed our business in line with the Principles
and Practices of Financial Management and summarises the steps we
have taken to ensure that we treat customers fairly. It also contains
the With-Profits Actuary's statement on the management of the with-profits
business.
In the second quarter of 2009, we will publish the report covering our management of with-profits business during 2008.
Your guide to with-profits
To help you understand our PPFM, we have summarised the necessarily technical language in a straightforward jargon-free summary called Your guide to with-profits. All new with-profits policyholders now automatically receive this summary when they take out their policy. All policyholders who started a with-profits policy before 1 January 2006 will automatically receive one by mail during 2006 (normally at the same time they receive their annual statement). You can also view Your guide to with-profits here or you can contact us on 0845 845 0845 and we will send you one.
If, when you've read the above documents, you still feel unclear about how we manage our with-profits business, you should seek further advice from your financial adviser.
Scheme of Transfer
Scottish Widows' Fund and Life Assurance Society demutualised and transferred most of its business to Scottish Widows plc, a company in the Lloyds TSB Group, on 3 March 2000. The legal document that governed the basis of how that transfer was implemented is called a 'scheme of transfer'. That scheme of transfer governs much of how we operate our with-profits fund. It is referred to in our PPFM and some relevant extracts are included within the PPFM.
If, however, you wish to read the full text of the Scottish
Widows Scheme of Transfer you can view or download it here. Please note that this is a highly technical
document and is provided for reference and completeness only.
Asset mixes of our with-profits fund
The Scottish
Widows with-profits fund invests in a mix of assets such as company
shares (also known as equity shares), property, bonds (also known
as fixed-interest securities) and cash deposits. The proportion of
our with-profits fund that is put into each of these different types
of asset will vary over time. The mix of assets can be different
for different parts of the fund. You can find view or download the asset mix of each part of the with-profits fund here.
Actuarial Profession
The Actuarial Profession represents and regulates members of the Institute of Actuaries in England and Wales, and the Faculty of Actuaries in Scotland. The Actuarial Profession has issued a briefing note which explains the technical background to with-profits bonus announcements. You can read that briefing by visiting the Profession's website
or by downloading it here.
