Recent changes to the PPFM
The Principles and Practices of Financial Management (PPFM) are reviewed by the Board regularly, and the most recent changes were agreed as summarised below. The current (26th February 2019) version of the PPFM is available here.
The Principles have been changed to remove redundant wording and to improve clarity, without making any changes of substance to the Principles. The Practices have been changed similarly to improve clarity, but also to update them to reflect:
- Changes to reflect new investment management arrangements that were implemented over 2018. Where appropriate, references to equities have been updated to risk assets.
- Clarification of our existing approach to market value reductions in the Practices for Final Bonuses, Business Risks and Charges and Expenses. This explains that in falling markets we operate a dampening mechanism that means we are less likely to need to apply a market value reduction.