For UK financial advisers only, not approved for use by retail customers. Click here for the customer website.

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 versions 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 2021.

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)

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