ProfitShare for with profits customers

We want more of our customers to share in our success. So we're widening the scope of our with profits business from 1 January 2016. 

Writing to our with profits customers

Customers invested in our with profits fund already benefit from ProfitShare.

We want to let them know they shouldn’t be any worse off by the changes we're making.

In fact, we'll be increasing the regular bonus they receive by the same rate we give to customers through our new ProfitShare extension. So they'll see an extra benefit too.

There's nothing for you or your clients to do.

Communication timeline

w/c 12/10

We'll begin writing to employers and trustees of defined contribution schemes who have members currently invested in our with profits fund.

We’ll also be writing to trustees of defined benefit schemes who have investments in our with profits fund.

These communications will be staggered over a number of weeks.

w/e 12/10

We'll begin writing to individual planholders who have retirement savings invested in our with profits fund.

These communications will be staggered over a number of weeks.

The key messages

  • We're widening the scope of our with profits business from 1 January 2016.
  • The way that we manage our existing with profits business won't change.
  • There's nothing for you or your clients to do.
  • The customers who qualify for our extended ProfitShare will receive a smaller benefit than those currently invested in our with profits fund.
  • Any customer who takes out a pension plan with us from 1 January 2016 will qualify for ProfitShare.
  • Customers who took out a pension plan with us on or after 1 July 2001 will also qualify for ProfitShare. This is the date on which Royal London acquired Scottish Life. For occupational schemes, we'll use the date the scheme began – not the date the member joined.

We have separate letters for:

Each customer will receive:

  • A guide to the changes to the PPFM
    This booklet tells customers about the changes we're making to our Principles and Practices of Financial Management (PPFM). The PPFM describes how we manage our with profits policies.
  • Your questions answered
    This answers some key questions customers may have after reading the PPFM booklet.

Additional support material

  • The view of the With Profits Committee
    The With Profits Committee exists to consider the interests of all with profits customers in the Royal London Group. It exercises independent judgement when advising the Board on how to treat them fairly. This document is a summary of their view of our plans to widen the scope of our with profits business to include more customers.
  • The independent expert's report
    Our With Profits Committee enlisted the help of an independent expert, who was approved by our regulators to review our proposals. This is a summary of their findings.

This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit royallondon.com.

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.