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Principles and Practices of Financial Management

All firms that carry out with-profits business are required to publish the Principles and Practices of Financial Management (PPFM) that are applied in the management of their with-profits funds.

Our PPFMs help a knowledgeable observer (e.g. a financial adviser) understand how we manage with-profits business, including:

  • how we determine pay-out values,
  • our investment strategy, and
  • how we manage business risks.

A significant revamp of the PPFM was published on 1 April 2021 which simplifies the way we describe our principles and practices to make it more accessible to advisers/customers. The revamp reviewed the length of the PPFM and removed statements of limited relevance, redrafted statements in a clearer manner, and also produced a PruFund specific version of the PPFM. We now maintain two versions of our PPFM, a full version covering all with-profits business, and a PruFund specific version:

  • The full PPFM covers all with-profits policies issued in the UK by companies in or acquired by the M&G plc Group i.e. by Prudential Assurance Company Limited (PAC), Scottish Amicable Life plc, (SAL) which was transferred to PAC with effect from 31 December 2002, Prudential (AN) Limited (PANL) which were transferred to PAC with effect from 31 October 2010, Prudential International Assurance plc (PIA), and Scottish Amicable Life Assurance Society which were transferred to PAC with effect from 30 September 1997). It also covers the with-profits annuity policies transferred from the Equitable Life Assurance Society to PAC.
  • The PruFund specific PPFM is an abbreviated version of the full PPFM which covers all with-profits policies investing in PruFund issued in the UK by companies in M&G plc (i.e. by The Prudential Assurance Company Limited (PAC) and Prudential International Assurance plc (PIA)). 

The Principles define the overarching standards adopted in managing PAC's with-profits business and describe the approach used in responding to longer-term changes in the business and economic environment.

The Practices describe the approach used in responding to changes in the business and economic environment in the shorter-term, and as a result, they will change more frequently than Principles.

These verions of the PPFM were published in April 2021. The contents of our PPFMs may be amended in the future and an updated version of these documents will be published on our website as soon as practical after any changes are finalised. Please make sure you have also read the Key Features Document and Customer Friendly version of the PPFM appropriate for your product.

You can download either PPFM using the links below or call our Customer Service Team on 0800 000 000. Opening times are 8.00am to 6.00pm Monday to Friday. We might record your call for training and quality purposes. To find out more about how we use your personal data please see our Data Privacy Notice.

Full version of Prudential's Principles and Practices of Financial Management (PPFM) PDF (4000k)

PruFund only version of Prudential's Principles and Practices of Financial Management (PPFM) PDF (4000k)

This document outlines the notable changes made to Prudential's PPFM since launch in 2004.

Prudential's Principles and Practices of Financial Management - Summary of changes (60k)

This document confirms how we comply with the Principles and Practices of Financial Management. This contains the current version of the With-Profits Actuary’s Report, covering compliance during 2019.

Prudential’s compliance with the Principles and Practices of Financial Management and With-Profits Actuary’s Report (PDF)

There are also Customer Friendly versions of the PPFM available, each one applicable to particular types of products

PruFund (Pricing Series E) range of funds
PruFund (Pricing Series D) range of funds
PruFund range of funds
Prudential Unitised With-Profits Plans
Prudential Conventional With-Profits Plans
Unitised With-Profits Plans originally issued by SALAS
Conventional With-Profits Plans originally issued by SALAS
Unitised With-Profits Plans originally issued by SAL
Prudential Income Choice Annuity *
Prudential With-Profits Annuity Plans
Ex-Equitable Life Assurance Society With-Profits Annuity Plans
Prudential International Investment Bond and International Prudence Bond - Your With-Profits Bond - a guide to how we manage the Fund
Prudential International Investment Bond and International Prudence Bond - The PruFund Range of Funds
International Portfolio Bond – Your With-Profits Bond – a guide to how we manage the Fund
Prudential Flexible Investment Plan (Series S - Sold by Santander Financial Advisers)

* This guide only applies to Income Choice Annuities which started on or after 7 November 2011.
This guide does not apply to:

  • Income Choice Annuities which were started before 7 November 2011
  • A small number of Income Choice Annuities which were set up between 7 November and 16 December 2011

If this guide doesn't apply to your Income Choice Annuity and you'd like a copy of the guide that does, please see the Pre 07/11/2011 -Prudential Income Choice Annuity guide. If you are unsure which guide applies to your Income Choice Annuity, please contact us on 0800 000 000.

Further Information

Current information regarding the asset mix and investment returns is included in the document below.

Asset Mix and Investment Returns PDF (89k)

Scottish Amicable Insurance Fund Chairman's Statement 

Scottish Amicable Insurance Fund Chairman's Statement

Prudential's Statement of Unit-Linked Principles and Practices

Prudential has published a statement of the Principles and Practices used in the management of our unit-linked funds.

View details of this statement 

 

"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at Craigforth, Stirling FK9 4UE. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company. The Prudential Assurance Company and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc, a company incorporated in the United Kingdom. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.