The rules and guidance in this section are intended to secure an appropriate degree of protection for with-profits policyholders and potential with-profits policyholders and to promote confidence among such policyholders by:
The governance arrangements referred to in COB 6.11.4 G should:
The independent judgement in COB 6.11.5 G(2) can be provided in different ways. These may include but are not confined to:
establishing a committee of the governing body (a With-profits Committee), including non-executive members of the governing body and possibly some external non-directors with appropriate skills and experience;
asking an independent person with appropriate skills and experience to report on these matters to the governing body or to any With-Profits Committee; or
For the purposes of COB 6.11.6 G(2), appropriate skills and experience could have been gained in, for example, consumer protection, the life insurance industry, regulation or as a member of the accountancy, actuarial or legal professions.
exercised, or failed to exercise, any discretion that it has in the conduct of its with-profits business; and
A firm should make the report in COB 6.11.9 R available to with-profits policyholders within six months of the end of the financial year to which it relates. A firm may choose how it makes the report available. Methods of delivery might include publishing the report on the firm's website, providing copies on request, or including it in the firm's annual financial statements. A firm should notify its with-profits policyholders in any annual statements how copies of the report can be obtained.
3IPRU(INS) rule 9.6(6) requires an insurer to deposit with the FSA any statement or report made to its with-profits policyholders under COB 6.11.8 G, COB 6.11.9 R or SUP 4.3.16A R (4) when it deposits its return. If a statement or report has not been made when the return is deposited, IPRU(INS) rule 9.6(6A) requires the insurer to deposit it as soon as possible thereafter.