We aim to build scalable platforms and propositions, with a focus on lowering our unit costs. In doing these things, we aim to drive profits, deliver investment growth to our clients, dividends to our shareholders and wider value to our people and other key stakeholders.
In our UK and Europe businesses, our main aim is to help our customers and clients invest their money.
The sponsorship has become an integral part of our long-term brand building strategy and is a perfect match in terms of our heritage, client base and strong team ethos.
You can visit withandy.com to read more about how we’re working together.
2 Based on draft regulatory returns. 3 Aggregate entity level Solvency II own funds. 4 Providing that subordinated debt meets certain conditions it can be counted as capital that is available to cover Solvency II capital requirements.
 Other non-operating loss of £79m (2014: £65m), which includes a £46m loss in Hong Kong mainly due to an impairment of deferred acquisition costs following regulatory change and £20m (2014: £15m) amortisation of acquired intangibles primarily relating to the acquisition of Ignis. There was also a further £5m (2014: £43m) impairment charge on the Ignis intangible assets acquired following outflows from the Absolute Return Government Bond Fund.
The total tax expense attributable to equity holder’s profit from continuing operations was £77m (2014: £42m). Further details are included on the next page.
1 Excluding strategic partner life business. 2 As at 31 December 2015, based on 100%
Our position in the wholesale market in the UK strengthened with share of gross sales of 5.4% (2014: 4.5%). We are now the third largest manager of UK mutual funds, up from eighteenth in 2010. UK mutual funds AUM increased by 22% to £26.7bn and represents 20% of third party assets.
of assets invested in our market-leading drawdown proposition. Our Active Money Personal Pension (AMPP) product grew 70% to £1.3bn. This provides customers with a simple means of accessing their income in retirement. Over 60% of funds in AMPP are invested in the Standard Life Active Retirement fund, which has been our fastest selling insured fund to date.
Europe Europe operating profit reduced by £17m to £23m and includes the previously disclosed H1 2015 £9m shareholder support provided to the German with profits business. This is a one-off contribution as we no longer write new with profits business in Germany. Europe underlying performance was £8m lower at £31m with the impact of a reduced benefit from asset and liability management and adverse foreign exchange movements offsetting fee revenue growth in our German and Ireland business.
The regulatory landscape in India continues to evolve as the insurance market matures. The impact of these regulatory developments on HDFC Life and the industry is still uncertain. HDFC Life retains close, co-operative relationships with regulators and will continue to proactively manage and respond to regulatory change.
AUA and net flows £302m £261m £293m £m £m Fee based revenue 38 49 Operating expenses (36) (44) Share of associates’ and joint ventures’ profit before tax 25 18
IFRS profit after tax for the Canadian business, which in 2015 included the results for the month of January, was £45m (2014: £127m) excluding the gain on sale. The result mainly benefited from favourable short-term fluctuations on investment return of £63m due to large yield movements in the month, offset by a £20m tax expense.
The FCA commenced in 2015 a samplebased review of non-advised annuity sales from a selection of firms across the industry in which Standard Life has been participating. We have carried out analysis including an initial sampling of historical sales and work is ongoing to understand the implications for relevant components of the Standard Life annuity population. The outcome and consequences are uncertain but could include requirements to compensate customers and could have an adverse effect on the Group’s profits and/or financial position. See Note 45 of the Group financial statements.
Principal Risk Trend The risk to our business How we manage the risk
 We invest in initiatives to build trust and longterm relationships with customers. In our sustainability section (1.6) we explain how we use insight to inform and develop our products and services as well as the methods we use to engage and educate our customers
 Change management forms part of our operational risk management framework which provides a robust and established framework under which change is managed, reported and implemented
Principal Risk Trend The risk in our business How we manage the risk
 We monitor opportunities to implement further reinsurance or capital market transactions to reduce our exposure 36 Standard Life
The other priorities build on that responsibility. They relate to the nature of our business and areas where we can make a positive impact.
In 2015, we were listed for the fifth year running in the DJSI World and Europe indices, which include the top 10% and 20% respectively of sustainable companies in our sector who take part.
You can read details of our GHG emissions for our own business operations below. This doesn’t include GHG emissions for our global real estate investment portfolio.
We were named as one of UK newspaper The Times Top 50 Employers for Women, based on the support and development opportunities we offer to everyone and recognising the work of our Women’s Development Network.
Our people strategy is consistent with both the United Nations and International Labour Organisation’s standards
We have increased the percentage of our people 25 and under from 0.4% in 2010 to 6.1% in 2015.
We use brand Net Promoter Score (NPS) as a key performance indicator of customer experience and brand advocacy. The score indicates how likely a customer is to recommend Standard Life to family and friends. In the last year our brand NPS, measured by an independent survey, has increased by 5.
Vulnerable consumers The FCA has placed a recent focus on how financial services companies interact with vulnerable consumers. We recognise there are challenges for our industry in ensuring products and services meet all consumer needs. We have plans in place for 2016 to make our products and services more inclusive.
This is an ongoing process for us, so that we can create the right set of indicators that accurately reflect and track progress on these four areas.
1.7 Basis of preparation Overview Our Strategic report for the year to 31 December 2015 has been prepared in line with the Companies Act 2006 and the Disclosure and Transparency Rules (DTR) issued by the FCA. Under section 414 of the Companies Act 2006, DTR 4.1.8 and DTR 4.1.9, the Group is required to provide a fair, balanced and understandable review of the business and a description of the principal risks and uncertainties facing the Group. Principal risks and uncertainties are detailed in Section 1.5 and Note 41 in the Group financial statements section. To provide clear and helpful information, we have also considered the voluntary best practice principles of the Reporting statement: Operating and Financial Review (OFR) issued by the Accounting Standards Board (ASB) in 2006 and Guidance on the Strategic report issued by the Financial Reporting Council in 2014.
Keith was appointed Chief Executive on 5 August 2015, having been a Director since May 2006. He has been a Director for 9.5 years.
Background Pierre is vice chairman of TDC, executive chairman of Volia, independent director of CIEL Investment Limited and vice chairman of AgroGeneration. From 2000 to 2005, Pierre was chief executive officer of BT Retail and, subsequently, chief operating officer of Capgemini Group and chairman of Eircom. Until June 2012, he served as chief executive officer and then non-executive chairman of Numericable Completel in Paris.
Tenure Isabel was appointed Director in October 2014. She has been a Director for 1.5 years.
Reporting for the year ended 31 December 2015 The Company is the holding company of the Group. You can find out about the relevant activities of the Company’s principal subsidiary undertakings and their overseas branches in the Chief Financial Officer’s overview and Business performance sections of the Strategic report. During 2015, the Company’s principal undertakings operated branches in Bermuda, Canada, Dubai, Germany, Hong Kong, India, Ireland and Singapore.
Directors’ liability insurance During 2015, the Company maintained directors’ and officers’ liability insurance on behalf of its directors and officers to provide cover should any legal action be brought against them. The Company also maintained a pension trustee liability indemnity policy (which includes third party indemnity) for the boards of trustees of the UK and Irish staff pension schemes. The trustees include individuals who are directors of subsidiaries within the Group.
Political Donations We did not make any political donations in the year ended 31 December 2015. The Company has limited authorisation from shareholders to make political donations and incur political expenditure (Resolution 13, 2015 AGM). We request this as a precaution against any inadvertent breach of political donations legislation. While Standard Life has regular interaction with government and elected politicians in the UK and other jurisdictions in which we operate, we are strictly apolitical. We have a long-standing policy of not making political donations and we have no plans to do so.
Director independence, external activities and conflicts of interest The Board carries out a formal review of the independence of non-executive Directors annually. The review considers relevant issues including the number and nature of their other appointments, any other positions they hold within the Group, any potential conflicts of interest they have identified and their length of service. Their individual circumstances are also assessed against independence criteria, including those in the Code. Following this review, the Board has concluded that all the non-executive Directors are independent.
 Focused technical meetings with internal and external experts on specific areas including Solvency II, conduct risk, risk and capital management, and financial reporting
 The Group’s organisational structure, strategy, business activities and operational plans
 A proven track record of delivering strong returns for shareholders
 To understand how he would benchmark against other potential external candidates, Keith then completed an in-depth assessment and interview with a leading external executive search firm focused on core behavioural leadership competencies and experience
 Regulatory approval for Keith’s candidacy was sought from the PRA and the FCA
The results of the Committee’s discussions are presented at least annually to the Board. During 2015, the non-executive Directors held specific discussions on Board and executive succession, the results of which fed into the overall plan
 Remuneration  Fit and proper requirements  Risk management including ORSA  Prudent person principle  Own fund requirements  Internal controls (covering strategic, financial, operational and compliance)  Internal audit function  Actuarial function plus opinion on technical provisions  Valuation of assets and liabilities other than technical provisions  Outsourcing  Group governance specific requirements
The certification exercise asked the Chief Executive Officers, Chief Financial Officers, Chief Risk Officers and Group function executives to confirm the following:  An effectiveness review over each component of the SoG had been conducted
The risk function prepared a report combining the output from the business units and Group function executives. This was presented to the Chief Executive, Chief Financial Officer and Chief Risk Officer and they also completed the certification exercise. The results of the output from the effectiveness review of the SoG, which concluded that there had been no significant failings or weaknesses, were presented to the Audit Committee which subsequently reported this conclusion to the Board.
We publish company profiles to provide a high level introduction to the Group and its divisions. We also distribute a quarterly newsletter featuring articles designed to give investors deeper insight into particular areas of our business. Copies of our Company profiles and newsletters are available on the Investors section of the Group’s website.
 The findings of its reviews of the financial information in the Group’s annual and half year financial reports
Additionally the incoming Committee Chairman met individually with each member of the audit committee and discussed the performance of the committee.
 Greater scrutiny of non-GAAP measures, such as assets under administration and operating profit
Year 2015 year end work  The GIA global charter and the GIA
The Committee reviews the arrangements for Group employees to raise concerns, in confidence, about possible wrongdoing in financial reporting and other matters.
The Policy permits non-audit services to be purchased, following approval, when they are closely aligned to the external audit function and when the external audit firm’s skills and experience make it the most suitable supplier. These include:  Accounting consultations and audits in connection with acquisitions and sales of businesses
Taking account of all our work, the Committee was satisfied with the quality of audit and, in accordance with its appointment procedures, the Committee recommended that the current auditors be proposed for reappointment at the 2016 AGM until the conclusion of the 2017 AGM. The Committee’s recommendation is not restricted by any contractual obligations.
Enterprise Risk Management framework The Committee monitors the structure and implementation of the Group’s ERM framework primarily through the material contained in the Group Views on Risk and ORSA reporting. Material reviewed by the Committee during the year included:  The status of policy compliance and the results of control self-assessment  Dashboard summaries of key risks  The Chief Internal Auditor’s assessment of the internal control environment related to the management of risk and capital
In line with the Committee’s duties, the Committee reviewed the key assumptions and bases underlying the Individual Capital Assessment for Standard Life Assurance Limited and the Committee also reviewed the Internal Capital Adequacy Assessment Process for Standard Life Savings Limited and Standard Life Investments (Holdings) Limited with the latter representing the first report covering the integrated Ignis business and Standard Life Wealth.
5. Directors’ remuneration report 5.1 Remuneration Committee Chairman’s statement This report sets how we will pay the Directors of Standard Life plc in the future and what we paid them in 2015. Where tables and charts in this report have been audited by PricewaterhouseCoopers LLP we have marked them as ‘audited’ for clarity.
Standard Life Investments have increased operating profit before tax by 33% to £342 million, and earnings before interest, tax, depreciation and amortisation (EBITDA) to £352 million from £266 million in 2014.
Further Board Appointments On 29 October 2015, the Board announced the appointments of Paul Matthews, Chief Executive, UK and Europe and Colin Clark, Director of the Global Client Group, to the Board with effect from 1 November 2015. This is a clear signal that the Company continues to put clients and customers at the heart of its business and ensures that the full Board has direct access to those individuals most closely aligned to the delivery of our strategy and our global ambitions. Paul and Colin represent the main points of contact with our retail, workplace and intermediary customers and our global institutional and wholesale clients. This move is in line with best practice recommended by the Standard Life Investments stewardship team that executive representation on a board should be deeper than the Chief Executive and Chief Financial Officer.
The Remuneration Committee also approved the vesting level of the 2013 Group Long-term Inventive Plan as 40.77% and awards granted under the Standard Life Investments Long-term Incentive Plan will vest at 84.2%.
There is no maximum value of the core benefit package as this is dependent on the cost to the employing company and the individual’s circumstances.
Employer contribution into the Group’s defined contribution pension plan of up to 32% of salary. Alternatively, a cash allowance of up to 30% of salary.
Further details on these plans are set out in the Annual report and accounts 2014.
Group annual bonus outcome The actual financial performance targets and the detailed non-financial measures used for the determination of the annual bonus plans for 2015 have not been disclosed in this Directors’ remuneration report as the Board deems that, given the annual bonus rewards achievement of the Group’s business plan, the disclosure of these could seriously prejudice the Group’s business. The financial targets will be disclosed, at the earliest, in the Directors’ remuneration report published for the financial year following the year for which the bonus is paid.
2013 Group LTIP awards vesting in respect of performance ending in 2015 (audited) Awards were made in March 2013 of 200% of salary to David Nish and Keith Skeoch. The original targets for the 2013 Group LTIP award were adjusted to reflect the impact of certain corporate actions. Further details of the adjustments made are provided in the Annual report and accounts 2014.
Maintaining a personal performance level above a predetermined threshold Vesting: 0% Vesting: 100%
All payments made to David Nish in respect of the period in 2015 in which he was a Director are reported in the single figure of remuneration and following sections in Section 5.3. The following payments have been made in respect of the period 6 August 2015 to 31 December 2015:  Base salary: £339,216  Benefits: £6,886  Pension: £101,701  Annual bonus: £531,563 (in line with our normal practice as David Nish is prevented from taking up alternative employment whilst on garden leave he remained eligible for a bonus for this period)  Long-term incentive awards: £111,420 (which reflects the proportion of the 2013 Group LTIP award relating to the period 6
In evaluating the non-financial metrics, the Remuneration Committee will reference, where possible, objective data and will exercise judgement in determining achievement of objectives when assessing performance. Disclosure on performance and how performance has been evaluated by the Remuneration Committee will be provided in the Directors’ remuneration report at the end of the performance period. The financial targets will be disclosed, at the earliest, in the Directors’ remuneration report published for the financial year following the year for which the bonus is paid. This will allow shareholders to assess whether awards are appropriate in the context of the performance and progress made at the end of the year.
Shares acquired/(sold) by the Directors during the period 1 January 2015 to
 Fulfilled its duties under its terms of reference, and amended its terms of reference as appropriate
The following table sets out actual voting on the remuneration policy and 2014 Directors remuneration report presented at the 2015 AGM on 12 May 2015.
European Union  Have been prepared in accordance with the requirements of the Companies Act 2006 and Article 4 of the International
Determination of actuarial assumptions for valuation of assets and liabilities Refer to page 68 (Audit Committee report), page 117 (Critical accounting estimates and judgements), pages 164 to 171 (Accounting policies and notes).
Due to a regulatory change in Hong Kong, which had a material impact on the valuation of the deferred acquisition costs of Standard Life’s Hong Kong insurance business, we focused on the assumptions used in this valuation.
Our audit work in respect of the valuation of the deferred acquisition costs of Standard Life’s Hong Kong insurance business included:  Challenging management’s assumptions by applying our industry knowledge and experience to compare whether the assumptions are in line with industry accepted practice and relevant regulatory and reporting requirements
The Directors’ valuation of intangible assets arising from business combinations involves complex judgements about forecast fund flows, discount rates and operating margins, as changes to which can have a material impact on the valuations adopted in the financial statements. We gave specific focus to the changes in assumptions used in the revaluation of the remaining customer contract intangible asset arising from the acquisition of Ignis Asset Management Limited (‘Ignis’) in 2014 as changes to these assumptions could lead to a material change in the valuation and result in a material impairment charge within the consolidated income statement for the year.
Going concern Under the Listing Rules we are required to review the Directors’ statement, set out on page 99, in relation to going concern. We have nothing to report having performed our review.
Under ISAs (UK & Ireland) we are required to report to you if we have anything material to add or to draw attention to in relation to the Directors’ statement about whether they considered it appropriate to adopt the going concern basis in preparing the financial statements. We have nothing material to add or to which to draw attention.
During the year, the Group incurred audit fees in respect of the UK staff defined benefit plan of £52,500 (2014: £48,500).
Total items that may be reclassified subsequently to profit or loss 64 (1)
Weighted average number of diluted ordinary shares outstanding 2,060 2,060 2,396 2,396
(a) Short-term fluctuations in investment return and economic assumptions changes The components of IFRS profit attributable to market movements and interest rate changes which give rise to variances between actual and expected investment returns, as well as the impact of changes in economic assumptions on equity holder liabilities, are excluded from operating profit.
Other non-operating items from discontinued operations includes £31m (2014: £nil) in respect of impairment of deferred acquisition costs and plan enhancements relating to the closure of the Singapore business.
In addition to the dividend distribution on ordinary shares, the Group returned 73 pence per ordinary share (£1,749m) to shareholders through a ‘B/C’ share scheme as discussed in Note 28.
The most significant judgements used in determining the recoverable amount for investment management contracts acquired in business combinations are estimated net flow projections and forecasted operating profit margins. Net flow projections are based on forecast information for the next five years and thereafter assumed no further net flows. The useful economic life of the intangible assets is between 10 and 15 years and therefore the projected cash flows used to determine value in use cover a period of longer than five years.
Under the equity method, investments in associates and joint ventures are initially recognised at cost and include any goodwill identified on acquisition. The carrying value is adjusted for the Group’s share of post-acquisition profit or loss and other comprehensive income of the associate or joint venture, which are recognised in the consolidated income statement and other comprehensive income respectively. The carrying value would also be adjusted for any impairment losses.
Share of net assets 78 63 54 44 Carrying value of associate 115 86 87 73 Dividends received 5 4 7 3
Estimates and assumptions Determination of the fair value of investment property is a key estimate. The methods and assumptions used to determine fair value of investment property are discussed in Note 43.
Greater than 20 years Total 2015 £m £m £m £m £m £m £m
Net derivative financial instruments cash (outflows)/inflows (235) 353 413 30 (427) 11 145
£m £m 1 January 1,115 1,110 Issue of ‘B’ shares (488) - Shares issued in respect of share options 1 5 31 December 628 1,115
Revaluation of owner occupied property 3 - - - - - - - - 3
Included in non-controlling interests of £347m (2014: £278m) is £210m (2014: £190m) of non-controlling interests of Standard Life European Private Equity Trust plc (SLEPET) which is considered material to the Group. Non-controlling interests own 46% (2014: 46%) of the voting rights of SLEPET. The profit allocated to non-controlling interests of SLEPET for the year ended 31 December 2015 is £31m (2014: £2m). Dividends paid to non-controlling interests of SLEPET during the year ended 31 December 2015 were £5m (2014: £4m).
The change in non-participating investment contract liabilities was as follows: 2015 2014 Notes £m £m
The statement of financial position must reflect assets or liabilities relating to each defined benefit pension plan. The liability recognised is the present value of the defined benefit obligation (estimated future cash flows are discounted using the yields on high quality corporate bonds) less the fair value of plan assets, if any. If the fair value of the plan assets exceeds the defined benefit obligation, a pension surplus is only recognised if the Group considers that it has an unconditional right to a refund. The amount of surplus recognised will be limited by tax and expenses. Our judgement is that, in the UK, an authorised surplus tax charge is not an income tax. Consequently, the surplus is recognised net of this tax charge rather than the tax charge being included within deferred taxation.
The Trustees, after consulting with the employer, prepare statements of funding and investment principles and, based on the funding valuation, set out future contributions in a schedule of contributions including a recovery plan, if needed, to restore funding to the level of the technical provisions. No recovery plan is currently required. The Trustees of the UK defined benefit plan set the investment strategy to protect the funding ratio of the Trustees’ funding position.
Defined benefit Defined contribution Other The defined benefit plan for employees based in Ireland has been closed to new entrants from 31 December 2009, with future accrual from that point on a career average revalued earnings (CARE) basis.
The most significant non-economic assumption is post-retirement longevity which is inherently uncertain. The assumptions (along with sample expectations of life) are illustrated below: Normal
The Group manages market risks through the use of a number of controls and techniques including: • Defined lists of permitted securities and/or application of investment constraints and portfolio limits • Clearly defined investment benchmarks for policyholder and shareholder funds • Stochastic and deterministic asset/liability modelling • Active use of derivatives to improve the matching characteristics of assets and liabilities • Setting risk limits for main market risks and managing exposures against these appetites
(b)(i) Elements of market risk The main elements of market risk to which the Group is exposed are equity risk, property risk, interest rate risk and foreign currency risk, which are discussed on the following pages. As a result of the diversity of the products offered by the Group and the different regulatory environments in which it operates, the Group employs a range of methods of asset and liability management across its business units.
Maximum counterparty exposure limits, net of collateral, are set with reference to internal credit assessments. The forms of collateral that may be accepted are also specified and minimum transfer amounts in respect of collateral transfers are documented. Refer to (c)(iii) for further details on collateral.
All business units are required to monitor, assess, manage and control liquidity risk in accordance with the relevant principles within the Group’s policy framework. Oversight is provided both at a Group level and within the business unit. In addition, all business units benefit from membership of a larger Group to the extent that, centrally, the Group: • Coordinates strategic planning and funding requirements • Monitors, assesses and oversees the investment of assets within the Group • Monitors and manages risk, capital requirements and available capital on a group-wide basis • Maintains a portfolio of committed bank facilities
The Group also had unrecognised commitments in respect of financial instruments as at 31 December 2015 of £319m and £nil with a contractual maturity of within one year and between one and five years respectively (2014: £312m and £nil).
Investments in associates at FVTPL, equity securities and interests in pooled investment funds, and amounts seeded into funds classified as held for sale
Debt securities 7,576 7,235 - 5,934 7,576 13,169 1,089 981 5,858 10,952 629 1,236 Contingent consideration asset 15 20 - - 15 20 - - - - 15 20
There were no transfers between levels 1 and 2 during the year (2014: none). Refer to 43(d)(iii) for details of movements in level 3.
Fair value 2014 £m Valuation technique Unobservable input Range (weighted average) Investment property and owner occupied property 8,753 Income capitalisation Equivalent yield
It is not possible to reliably calculate the fair value of participating investment contract liabilities. The assumptions and methods used in the calculation of these liabilities are set out in Note 33. The carrying value of participating investment contract liabilities at 31 December 2015 was £14,716m (31 December 2014: £15,193m including those classified as held for sale).
Change in liability for third party interest in consolidated funds 285 (2,458)
(a) Capital commitments As at 31 December 2015, capital expenditure that was authorised and contracted for, but not provided and incurred, was £231m (2014: £332m) in respect of investment property. Of this amount, £203m (2014: £287m) and £28m (2014: £36m) relates to the contractual obligations to purchase, construct, or develop investment property and repair, maintain or enhance investment property respectively.
Based on draft regulatory returns at 31 December 2015, SLAL had available capital resources of £5,723m (2014: £5,862m) and a CRR of £3,484m (2014: £3,637m). The capital resources shown in the capital statement are based on the value of assets and liabilities valued on a regulatory basis. However, the CRR reflects the higher value required as a result of the application of the realistic peak.
Contract liabilities The process used to determine the assumptions that have the greatest effect on the measurement of contract liabilities (including options and guarantees), the quantified disclosure of those assumptions, and the terms and conditions of options and guarantees relating to life assurance contracts that could in aggregate have a material effect on future cash flows are disclosed in Note 3 and Note 33. The sensitivity of contract liabilities to changes in market conditions, key assumptions and other variables, and assumptions about management actions in response to changes in market conditions, are disclosed in Note 41.
Genesis Business Park (Leasehold) Nominee 2 Limited United Kingdom Ordinary Shares 100%
SLI European Real Estate Club LP United Kingdom Limited Partnership 100%
Standard Life Investment (Corporate Funds) Limited United Kingdom Ordinary Shares 100%
Standard Life Investments (Trustee No 6 UK PDF) Limited United Kingdom Ordinary Shares 100%
Standard Life Investments Brent Cross General Partner Limited United Kingdom Ordinary Shares 100%
(b) Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Other comprehensive income that may be reclassified subsequently to profit or loss
UK and Europe Pensions and Savings 145.9 14.8 (12.1) 2.7 1.6 150.2
11.1 Group assets under administration and net flows continued Group assets under administration (summary) 12 months ended 31 December 2014
UK 75.5 15.2 (10.8) 4.4 3.3 83.2 Europe 11.3 5.4 (2.0) 3.4 (0.5) 14.2 North America 8.1 5.3 (2.3) 3.0 0.6 11.7 Asia Pacific 2.0 2.1 (0.9) 1.2 0.1 3.3 India 6.1 0.8 - 0.8 0.1 7.0 Ignis 14.5 2.6 (5.1) (2.5) (0.9) 11.1 By geography of client 117.5 31.4 (21.1) 10.3 2.7 130.5 Equities 15.5 2.6 (2.6) - 1.4 16.9 Fixed income 22.0 3.1 (2.8) 0.3 (0.5) 21.8 Multi-asset2 38.6 17.3 (7.8) 9.5 2.2 50.3 Real estate 7.4 1.1 (0.8) 0.3 0.9 8.6 MyFolio 5.9 2.6 (0.7) 1.9 0.3 8.1 Other3 13.6 2.1 (1.3) 0.8 (0.7) 13.7 Ignis4 14.5 2.6 (5.1) (2.5) (0.9) 11.1 By asset class 117.5 31.4 (21.1) 10.3 2.7 130.5 Institutional 61.4 11.1 (7.8) 3.3 2.3 67.0 Wholesale 35.5 16.8 (7.5) 9.3 1.1 45.9 Wealth 6.1 0.9 (0.7) 0.2 0.2 6.5 Ignis 14.5 2.6 (5.1) (2.5) (0.9) 11.1 By channel 117.5 31.4 (21.1) 10.3 2.7 130.5
Strategic partner life business net flows (2.7) (0.7) (1.6) (1.8) (1.4)
The members are appointed by the SLAL Board on the recommendation of the Nomination and Governance Committee. Directors of the Standard Life plc and SLAL Boards, the UK and Europe Chief Risk Officer and senior actuaries, in particular the With Profits Actuary and the UK and Europe Actuarial Director, routinely attend these meetings.
 Assess the ongoing VfM that relevant policyholders obtain from SLAL’s relevant schemes
The Committee’s routine formal interaction with the SLAL board is by the minutes of its meetings. The directors of SLAL and of the Company have an open invitation to attend any of the Committee meetings. Minutes of the Committee meetings are submitted to the Board.
Other services and communications A core element of Standard Life’s proposition to workplace members is the support services and communication materials that are designed to inform members of their pension plan and the steps they should take to achieve their retirement goals. The IGC reviewed these materials and how they form part of the online and offline experiences of members.
Flexible income (drawdown) Flexible income, also known as drawdown, allows the policyholder to withdraw pension income as and when they request it. The remainder of the pension fund remains invested, giving it the potential for growth.
 Amortisation of intangibles acquired in business combinations and fair value movements in contingent consideration
Transitional relief Solvency II regulations allow insurers to smooth the introduction of new rules for calculating policyholder liabilities. This relief includes a deduction from the amount of Solvency II technical provisions, based on the difference between technical provisions under the previous regulatory framework and Solvency II. The deduction decreases over the course of 16 years from 1 January 2016.
13.3 Other terms B/C share scheme Following the completion of the sale of the Canadian business on 30 January 2015 the Company returned 73 pence per share to shareholders via a B/C share scheme. Eligible shareholders were able to elect to receive one B share or one C share for each ordinary share that they held on 13 March 2015. The B shares were redeemable and had a nominal value of 73 pence each. The Company redeemed all outstanding B shares on 20 March 2015 giving rise to a capital receipt for shareholders. The C shares were non-redeemable and had a negligible nominal value. A dividend was declared on the C shares of 73 pence per share on 20 March 2015, giving rise to an income receipt for shareholders. Thereafter C shares were automatically reclassified as deferred shares.
Deferred acquisition costs (DAC) The method of accounting whereby acquisition costs on long-term business are deferred on the consolidated statement of financial position as an asset and amortised over the life of those contracts. This leads to a smoothed recognition of up front expenses instead of the full cost in the year of sale.
14. Shareholder information Registered office Company registration number: SC286832 Standard Life House 30 Lothian Road Edinburgh EH1 2DH Scotland