The company has set up Participating Business Committee (PBC) in accordance with applicable regulatory requirements. The PBC provides independent and objective advice to the Board in respect of participating funds, including but not limited to advice on recommendations made by the Appointed Actuary on the allocation of distributable surplus/profits and declaration of dividends. At least half of the PBC members are independent of the company. In providing its advice, the PBC should consider whether policy holders are being treated fairly. Following matters shall be considered by the PBC:
whether the level of future discretionary benefits provided in the benefit illustration is clear, fair and reasonably achievable;
the policy and mechanism for allocation of distributable surplus/profits and dividends declaration mechanism (including any smoothing mechanisms), taking into account reasonable expectations of policy holders (including but not limited to their expectations relating to reasonable achievement of discretionary benefits), fairness and equity, as well as sustainability;
fairness, equity and reasonableness in allocation of expenses and charges to and within participating funds;
the risk and investment profile of participating funds, including the appropriateness of the risk appetite and risk level taken, the management and reasonable balance of risk and return, etc.;
the impact of any management actions planned or implemented;
the company’s strategy for future sales of insurance policies in participating funds and their impact on surplus;
the use, purpose, and terms of any shareholder capital support to participating funds;
the company’s communications with existing and potential policy holders relating to participating funds, including fairness and transparency of disclosed information which may affect policy holders’ decisions; and
any other issues which the company or the PBC considers appropriate in relation to the company’s management of its participating funds.