More with-profits transparency

From march firms will have to tell investors how their with-profits funds are being invested

From March next year, firms offering with-profits funds will be required to provide policyholders with detailed explanations of the way in which the fund is managed and bonuses are declared. The FSA last week included new rules into its Conduct of Sourcebook, requiring that all providers of with-profits formulate and make available the Principles and Practices of Fund Management (PPFM) applied in the running of their with-profits portfolios. The PPFM has to include information such as the manager of the fund, investment targets, style and approach plus how the smoothing on the fund is cal...