equitable treatment of all policyholders and shareholders

between different groups, generations

allocation of profits and expenses

• eg allocation of investment and operational expenses

asset share is the main guide to what is fair

but then there are more granular decisions regarding asset share methodology

smoothing aims to reduce payout volatility but should not systematically favour leavers or remainers

other ways of demonstrating fairness:

• compliance with ppfm
• good governance : with profits committee,

smoothing limit

noticed in the UKLAP PPFM there is mention of a smoothing limit.

full extent of market changes not always immediately reflected in the change in payouts