Why Police Mutual?
Principles and Practices of Financial Management
What are the Principles and Practices of Financial
Management?
From 30 April 2004 the Financial Services
Authority (FSA) made it a requirement for all organisations
offering with-profits plans – such as our regular savings plan – to
produce a document called the Principles and Practices of Financial
Management (PPFM). The PPFM must set out how we manage our
with-profits business.
You can download and keep the latest copy of our
PPFM document by clicking on the link below.
What does the PPFM cover?
The document can be split into two:
1. The
Principles – how we run our business longer term:
- the overarching standards that we adopt in
managing the Life Fund (where all with-profits plans are
invested)
- the business model we use to ensure that we
meet our duties to our with-profits policyholders
- how we respond to changes in the business and
economic environment
2. The Practices - covering
the shorter term, but cover far more
detail:
- how we manage the Life Fund
- how we respond to changes in the business and
economic environment in the shorter term
The practices allow a knowledgeable observer
to understand the key risks and rewards of taking out a
with-profits plan with the Society - or keeping an existing
one.
Compliance with the PPFM is monitored on an annual basis. The
Managing Board’s report on compliance with the PPFM for 2007 is
available to download below.