5

Investment strategy of with-profits funds

5.1

When setting an investment strategy for a with-profits fund, the PRA expects firms to take into account any regulatory requirements, including:

(a) for Solvency II firms, the prudent person principle set out in Article 132 of the Solvency II Directive and RFF requirements in the Solvency II Regulations, and for non-Directive firms any PRA-designated rules in prudential sourcebooks;

(b) financial resources requirements and the availability of capital resources;

(c) any applicable conduct rules and guidance issued by the FCA; and

(d) any communication to policyholders in compliance with the relevant FCA conduct rules.