Final Results - Part 5b of 7

RNS Number : 5290P

Standard Life plc

19 February 2016

 

Standard Life plc

Full year results 2015

Part 5b of 7

42.  Structured entities

A structured entity is an entity that is structured in such a way that voting or similar rights are not the dominant factor in deciding who controls the entity. The Group has interests in structured entities through investments in a range of investment vehicles including:

·   Pooled investment funds managed internally and externally, including OEICs, SICAVs, unit trusts and limited partnerships

·   Debt securitisation vehicles which issue asset-backed securities

The Group consolidates structured entities which it controls.  Where the Group has an investment in, but not control over these types of entities, the investment is classified as an investment in associate when the Group has significant influence.

The Group also has interests in structured entities through asset management fees and other fees received from these entities. 

(a)   Consolidated structured entities

As at 31 December 2015 and 31 December 2014, the Group has not provided any non-contractual financial or other support to any consolidated structured entity and there are no current intentions to do so.

(b)   Unconsolidated structured entities

As at 31 December 2015 and 31 December 2014, the Group has not provided any non-contractual financial or other support to any unconsolidated structured entities and there are no current intentions to do so.

(b)(i) Investments in unconsolidated structured entities

The following table shows the carrying value of the Group's investments in unconsolidated structured entities by line items in the consolidated statement of financial position and by risk segment as defined in Note 41.

	Shareholder business		Participating business		Unit linked and segregated funds		Third party interest in consolidated funds and non-controlling interests		Total
	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014
2015	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Investments in associates	19	16	531	535	4,561	3,568	314	145	5,425	4,264
Equity securities and interests in pooled investment funds	-	19	72	92	17,406	15,845	1,425	1,199	18,903	17,155
Debt securities	576	358	1,454	793	1,381	851	140	79	3,551	2,081
Total	595	393	2,057	1,420	23,348	20,264	1,879	1,423	27,879	23,500

The asset value of unconsolidated structured entities which are managed by the Group and in which the Group's holding is classified as an investment in associate is £28,150m (2014: £28,266m). There are no interests in pooled investment funds managed by the Group other than those classified as investments in associates. The total issuance balance relating to unconsolidated structured debt securitisation vehicles in which the Group has an investment is £54,214m (2014: £31,046m).

The Group's maximum exposure to loss in respect of its investments in unconsolidated structured entities is the carrying value of the Group's investment. As noted in Note 41, the shareholder is not exposed to market or credit risk in respect of investments held in the unit linked and segregated funds, and third party interests in consolidated funds and non-controlling interests risk segments.

Additional information on how the Group manages its exposure to risk can be found in Note 41.

(b)(ii) Other interests in unconsolidated structured entities

For those structured entities which the Group receives asset management or other fees from but has no direct investment, the maximum exposure to loss is loss of future fees.

Total assets under management of structured entities in which the Group has no direct investments but has other interests in are £11,599m at 31 December 2015 (2014: £13,153m). The fees received in respect of these assets under management during the year to 31 December 2015 were £48m (2014: £65m).

43.  Fair value of assets and liabilities

The Group uses fair value to measure the majority of its assets and liabilities. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arm's length transaction.

Estimates and assumptions

Determination of the fair value of private equity investments, debt securities categorised as level 3 in the fair value hierarchy, over-the-counter derivatives and investment property are key estimates. Further details on the methods and assumptions used to value these investments are set out in section (d) below. Disclosures regarding sensitivity of level 3 instruments measured at fair value on the statement of financial position to changes in key assumptions are set out in (d)(iv) below.

(a)     Determination of fair value hierarchy

To provide further information on the approach used to determine and measure the fair value of certain assets and liabilities, the following fair value hierarchy categorisation has been used:

Level 1   Fair values measured using quoted prices (unadjusted) in active markets for identical assets or liabilities. An active market exists where transactions take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

Level 2   Fair values measured using inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3   Fair values measured using inputs that are not based on observable market data (unobservable inputs).

(b)     Financial investments and financial liabilities

An analysis of the Group's financial investments and financial liabilities in accordance with the categories of financial instrument set out in IAS 39 Financial Instruments: Recognition and Measurement is presented in Notes 21 and 35 and includes those financial assets and liabilities held at fair value.

(c)     Non-financial investments

An analysis of the Group's investment property and owner occupied property within property, plant and equipment in accordance with IAS 40 - Investment property and IAS 16 - Property, plant and equipment is presented in Notes 19 and 20 respectively and includes those assets held at fair value.

(d)     Methods and assumptions used to determine fair value of assets and liabilities

Information on the methods and assumptions used to determine fair values for each major category of instrument measured at fair value is given below. These methods and assumptions include those used to fair value assets and liabilities held for sale, including the individual assets and liabilities of operations held for sale.

Investments in associates at FVTPL, equity securities and interests in pooled investment funds, and amounts seeded into funds classified as held for sale

Investments in associates at FVTPL are valued in the same manner as the Group's equity securities and interests in pooled investment funds.

Equity instruments listed on a recognised exchange are valued using prices sourced from the primary exchange on which they are listed. These instruments are generally considered to be quoted in an active market and are therefore categorised as level 1 instruments within the fair value hierarchy.

Unlisted equities are valued using an adjusted net asset value. The Group's exposure to unlisted equity securities primarily relates to private equity investments. The majority of the Group's private equity investments are carried out through European fund of funds structures, where the Group receives valuations from the investment managers of the underlying funds.

The valuations received from investment managers of the underlying funds are reviewed and where appropriate adjustments are made to reflect the impact of changes in market conditions between the date of the valuation and the end of the reporting period. The valuation of these securities is largely based on inputs that are not based on observable market data, and accordingly these instruments are categorised as level 3 instruments within the fair value hierarchy. Where appropriate, reference is made to observable market data.

Where pooled investment funds have been seeded and the investments in the fund have been classified as held for sale, the costs to sell are assumed to be negligible. The fair value of pooled investment funds held for sale is calculated as equal to the observable unit price.

Investment property and owner occupied property

The fair value of investment property and all owner occupied property is valued by external property valuation experts. The current use is considered the best indicator of the highest and best use of the Group's property from a market participants' perspective. No adjustment has been made for vacant possession for the Group's owner occupied property.

In UK and Europe valuations are completed in accordance with the Royal Institution of Chartered Surveyors (RICS) valuation standards and predominantly an income capitalisation method is used. In Canada all valuations were completed in accordance with International Valuation Standards (IVS) and predominantly a discounted cash flow method was used. Both valuation techniques are income approaches as they consider the income that an asset will generate over its useful life and estimate fair value through a capitalisation process. Capitalisation involves the conversion of income into a capital sum through the application of an appropriate discount rate.

The determination of the fair value of investment property and all owner occupied property requires the use of estimates such as future cash flows from the assets for example, future rental income and discount rates applicable to those assets.

Where it is not possible to use an income approach a market approach will be used whereby comparisons are made to recent transactions with similar characteristics and locations to those of the Group's assets. Where appropriate, adjustments will be made by the valuer to reflect any differences.

Where an income approach, or a market approach with significant unobservable adjustments, has been used, valuations are predominantly based on unobservable inputs and accordingly these assets are categorised as level 3 within the fair value hierarchy. Where a market approach valuation does not include significant unobservable adjustments, these assets are categorised as level 2.

Derivative financial assets and derivative financial liabilities

The majority of the Group's derivatives are over-the-counter derivatives which are fair valued using a range of valuation models including discounting future cash flows and option valuation techniques. The inputs are observable market data and over-the-counter derivatives are therefore categorised as level 2 in the fair value hierarchy.

Exchange traded derivatives are valued using prices sourced from the relevant exchange. They are considered to be instruments quoted in an active market and are therefore categorised as level 1 instruments within the fair value hierarchy.

Non-performance risk arising from the credit risk of each counterparty has been considered on a net exposure basis in line with the Group's risk management policies. At 31 December 2015 and 31 December 2014 the residual credit risk is considered immaterial and therefore no credit risk adjustment has been made.

Debt securities                      
For debt securities, the Group has determined a hierarchy of pricing sources. The hierarchy consists of reputable external pricing providers who generally use observable market data. If prices are not available from these providers or are considered to be stale, the Group has established procedures to arrive at an internal assessment of the fair value. These procedures are based largely on inputs that are not based on observable market data. A further analysis by category of debt security is as follows:

·   Government, including provincial and municipal, and supranational institution bonds
These instruments are valued using prices received from external pricing providers who generally base the price on quotes received from a number of market participants. They are categorised as level 1 or level 2 instruments within the fair value hierarchy depending upon the nature of the underlying pricing information used for valuation purposes.

·   Corporate bonds listed or quoted in an established over-the-counter market including asset-backed securities
These instruments are generally valued using prices received from external pricing providers who generally consolidate quotes received from a panel of banks into a composite price. As the market becomes less active the quotes provided by some banks may be based on modelled prices rather than on actual transactions. These sources are based largely on observable market data, and therefore these instruments are categorised as level 2 instruments within the fair value hierarchy. When prices received from external pricing providers are based on a single broker indicative quote the instruments are categorised as level 3 instruments.

For instruments for which prices are either not available from external pricing providers or the prices provided are considered to be stale, the Group performs its own assessment of the fair value of these instruments. This assessment is largely based on inputs that are not based on observable market data, principally single broker indicative quotes, and accordingly these instruments are categorised as level 3 instruments within the fair value hierarchy.

·   Other corporate bonds including unquoted bonds, commercial paper and certificates of deposit
These instruments are valued using models. For unquoted bonds the model uses inputs from comparable bonds and includes credit spreads which are obtained from brokers or estimated internally. Commercial paper and certificates of deposit are valued using standard valuation formulas. The categorisation of these instruments within the fair value hierarchy will be either level 2 or 3 depending upon the nature of the underlying pricing information used for valuation purposes.

·   Commercial mortgages
These instruments are valued using models. The models use a discount rate adjustment technique which is an income approach. The key inputs for the valuation models are contractual future cash flows, which are discounted using a discount rate that is determined by adding a spread to the current base rate. The spread is derived from a pricing matrix which incorporates data on current spreads for similar assets and which may include an internal underwriting rating. These inputs are generally observable with the exception of the spread adjustment arising from the internal underwriting rating. The classification of these instruments within the fair value hierarchy will be either level 2 or 3 depending on whether the spread is adjusted by an internal underwriting rating.

Contingent consideration asset                                                                                    
A contingent consideration asset was recognised during 2014 in respect of a purchase price adjustment mechanism relating to the acquisition of Ignis as discussed in Note 1. The fair value of the asset is calculated using a binominal tree option pricing model. The main inputs are management fee income and expected probabilities of payouts. These are considered unobservable and as a result the asset is classified as level 3 in the fair value hierarchy.

Non-participating investment contract liabilities

The fair value of the non-participating investment contract liabilities is calculated equal to the fair value of the underlying assets and liabilities in the funds. Thus, the value of these liabilities is dependent on the methods and assumptions set out above in relation to the underlying assets and liabilities in which these funds are invested. The underlying assets and liabilities are predominately categorised as level 1 or 2 and as such, the inputs into the valuation of the liabilities are observable. Therefore, the liabilities are categorised within level 2 of the fair value hierarchy.

Liabilities in respect of third party interest in consolidated funds

The fair value of liabilities in respect of third party interest in consolidated funds is calculated equal to the fair value of the underlying assets and liabilities in the funds. Thus, the value of these liabilities is dependent on the methods and assumptions set out above in relation to the underlying assets in which these funds are invested. When the underlying assets and liabilities are valued using readily available market information the liabilities in respect of third party interest in consolidated funds are treated as level 2. Where the underlying assets and liabilities are not valued using readily available market information the liabilities in respect of third party interest in consolidated funds are treated as level 3.

(d)(i)   Fair value hierarchy for assets measured at fair value in the statement of financial position

The table below presents the Group's assets measured at fair value by level of the fair value hierarchy.

							Fair value hierarchy
	As recognised in the consolidated statement of financial position line item		Classified as held for sale		Total		Level 1		Level 2		Level 3
	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Investments in associates at FVTPL	5,425	4,264	33	33	5,458	4,297	5,370	4,214	2	-	86	83
Investment property	9,991	9,041	87	1,427	10,078	10,468	-	-	-	105	10,078	10,363
Owner occupied property	55	138	-	26	55	164	-	-	-	1	55	163
Derivative financial assets	2,444	4,021	-	44	2,444	4,065	692	971	1,752	3,094	-	-
Equity securities and interests in pooled investment vehicles	71,679	71,327	17	13,035	71,696	84,362	70,877	83,521	-	1	819		840
Debt securities	66,657	64,441	-	11,059	66,657	75,500	23,210	23,780	42,660	50,077	787		1,643
Contingent consideration asset	15	20	-	-	15	20	-	-	-	-	15	20
Total assets at fair value	156,266	153,252	137	25,624	156,403	178,876	100,149	112,486	44,414	53,278	11,840	13,112

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.

The table that follows presents an analysis of the Group's assets measured at fair value by level of the fair value hierarchy for each risk segment as set out in Note 41.

							Fair value hierarchy
	As recognised in the consolidated statement of financial position line item		Classified as held for sale		Total		Level 1		Level 2		Level 3
	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Shareholder business
Investments in associates at FVTPL	19	16	33	14	52	30	36	30	2	-	14	-
Investment property	1	-	-	520	1	520	-	-	-	105	1	415
Owner occupied property	-	3	-	26	-	29	-	-	-	1	-	28
Derivative financial assets	9	18	-	44	9	62	1	-	8	62	-	-
Equity securities and interests in pooled investment vehicles	52	31	17	250	69	281	61	254	-	-	8	27
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
Total shareholder business	7,672	7,323	50	6,788	7,722	14,111	1,187	1,265	5,868	11,120	667	1,726
Participating business
Investments in associates at FVTPL	531	535	-	-	531	535	459	452	-	-	72	83
Investment property	2,167	2,090	-	86	2,167	2,176	-	-	-	-	2,167	2,176
Owner occupied property	55	135	-	-	55	135	-	-	-	-	55	135
Derivative financial assets	1,478	1,649	-	-	1,478	1,649	407	332	1,071	1,317	-	-
Equity securities and interests in pooled investment vehicles	8,187	9,658	-	232	8,187	9,890	7,840	9,526	-	-	347	364
Debt securities	25,913	27,785	-	418	25,913	28,203	15,573	17,036	10,198	10,991	142	176
Total participating business	38,331	41,852	-	736	38,331	42,588	24,279	27,346	11,269	12,308	2,783	2,934
Unit linked and segregated funds
Investments in associates at FVTPL	4,561	3,568	-	19	4,561	3,587	4,561	3,587	-	-	-	-
Investment property	5,947	5,223	68	816	6,015	6,039	-	-	-	-	6,015	6,039
Owner occupied property	-	-	-	-	-	-	-	-	-	-	-	-
Derivative financial assets	716	1,711	-	-	716	1,711	220	458	496	1,253	-	-
Equity securities and interests in pooled investment vehicles	56,307	55,471	-	11,909	56,307	67,380	56,117	67,200	-	1	190	179
Debt securities	26,789	23,597	-	4,420	26,789	28,017	6,053	5,536	20,720	22,273	16	208
Total unit linked and segregated funds	94,320	89,570	68	17,164	94,388	106,734	66,951	76,781	21,216	23,527	6,221	6,426
Third party interest in consolidated funds and non-controlling interests
Investments in associates at FVTPL	314	145	-	-	314	145	314	145	-	-	-	-
Investment property	1,876	1,728	19	5	1,895	1,733	-	-	-	-	1,895	1,733
Owner occupied property	-	-	-	-	-	-	-	-	-	-	-	-
Derivative financial assets	241	643	-	-	241	643	64	181	177	462	-	-
Equity securities and interests in pooled investment vehicles	7,133	6,167	-	644	7,133	6,811	6,859	6,541	-	-	274	270
Debt securities	6,379	5,824	-	287	6,379	6,111	495	227	5,884	5,861	-	23
Third party interest in consolidated funds and non-controlling interests	15,943	14,507	19	936	15,962	15,443	7,732	7,094	6,061	6,323	2,169	2,026
Total	156,266	153,252	137	25,624	156,403	178,876	100,149	112,486	44,414	53,278	11,840	13,112

(d)(ii)  Fair value hierarchy for liabilities measured at fair value in the statement of financial position

The table below presents the Group's liabilities measured at fair value by level of the fair value hierarchy.

							Fair value hierarchy
	As recognised in the consolidated statement of financial position line item		Classified as held for sale		Total		Level 1		Level 2		Level 3
	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Non-participating investment contract liabilities	92,890	88,203	-	13,734	92,890	101,937	-	-	92,890	101,937	-	-
Liabilities in respect of third party interest in consolidated funds	17,196	15,805	-	953	17,196	16,758	-	-	15,889	15,419	1,307	1,339
Derivative financial liabilities	1,254	1,693	-	26	1,254	1,719	184	441	1,070	1,278	-	-
Contingent consideration liability	-	3	-	-	-	3	-	-	-	-	-	3
Total liabilities at fair value	111,340	105,704	-	14,713	111,340	120,417	184	441	109,849	118,634	1,307	1,342

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.

The table that follows presents an analysis of the Group's liabilities measured at fair value by level of the fair value hierarchy for each risk segment as set out in Note 41.

							Fair value hierarchy
	As recognised in the consolidated statement of financial position line item		Classified as held for sale		Total		Level 1		Level 2		Level 3
	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Shareholder business
Derivative financial liabilities	16	17	-	23	16	40	1	8	15	32	-	-
Contingent consideration liability	-	3	-	-	-	3	-	-	-	-	-	3
Total shareholder business	16	20	-	23	16	43	1	8	15	32	-	3
Participating business
Derivative financial liabilities	88	80	-	-	88	80	47	26	41	54	-	-
Total participating business	88	80	-	-	88	80	47	26	41	54	-	-
Unit linked and segregated funds
Non-participating investment contract liabilities	92,890	88,203	-	13,734	92,890	101,937	-	-	92,890	101,937	-	-
Derivative financial liabilities	836	1,187	-	2	836	1,189	103	319	733	870	-	-
Total unit linked and segregated funds	93,726	89,390	-	13,736	93,726	103,126	103	319	93,623	102,807	-	-
Third party interest in consolidated funds and non-controlling interests
Liabilities in respect of third party interest in consolidated funds	17,196	15,805	-	953	17,196	16,758	-	-	15,889	15,419	1,307	1,339
Derivative financial liabilities	314	409	-	1	314	410	33	88	281	322	-	-
Third party interest in consolidated funds and non-controlling interests	17,510	16,214	-	954	17,510	17,168	33	88	16,170	15,741	1,307	1,339
Total	111,340	105,704	-	14,713	111,340	120,417	184	441	109,849	118,634	1,307	1,342

(d)(iii)  Reconciliation of movements in level 3 instruments

The movements during the year of level 3 assets and liabilities held at fair value, excluding assets and liabilities held for sale, are analysed below.

	Investments in associates at FVTPL		Investment property		Owner occupied property		Equity securities and interests in pooled investment funds		Debt securities		Liabilities in respect of third party interest in consolidated funds
	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014	2015	2014
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
At 1 January	83	-	9,041	8,542	138	171	836	1,066	519	1,299	(1,338)	(1,246)
Reclassified as held for sale	-	-	(87)	(1,233)	-	(42)	-	(1)	-	(945)	-	-
Total gains/(losses) recognised in the consolidated income statement	1	2	452	825	4	4	135	(31)	-	38	(47)	(124)
Purchases	16	101	862	1,033	-	-	116	112	360	439	(91)	35
Settlement	-	-	-	-	-	-	-	-	-	-	169	(3)
Sales	(14)	(20)	(290)	(128)	(92)	-	(296)	(306)	(111)	(87)	-	-
Transfers in to level 3	-	-	-	-	-	-	26	1	33	436	-	-
Transfers out of level 3	-	-	-	-	-	-	-	(1)	(14)	(659)	-	-
Foreign exchange adjustment	-	-	(8)	(14)	-	-	2	(4)	-	(2)	-	-
Total gains recognised on revaluation of owner occupied property within other comprehensive income	-	-	-	-	5	5	-	-	-	-	-	-
Other	-	-	21	16	-	-	-	-	-	-	-	-
At 31 December	86	83	9,991	9,041	55	138	819	836	787	519	(1,307)	(1,338)

The Group recognised a contingent consideration asset in 2014 of £20m, in respect of the acquisition of Ignis. The fair value of this asset at 31 December 2015 was £15m (2014: £20m). Movements in fair value of contingent consideration assets are recognised in other income in the consolidated income statement.

As at 31 December 2015, £418m of total gains from continuing operations (2014: £625m) were recognised in the consolidated income statement in respect of assets and liabilities held at fair value classified as level 3 at the year end. Of this amount £465m gains (2014: £749m) were recognised in investment return from continuing operations and £47m losses (2014: £124m) were recognised in change in liability for liabilities in respect of third party interest in consolidated funds from continuing operations in the consolidated income statement.

Transfers of equity securities and interests in pooled investment funds and debt securities into level 3 generally arise when external pricing providers stop providing a price or where the price provided is considered stale. Transfers of equity securities and interests in pooled investment funds and debt securities out of level 3 arise when acceptable prices become available from external pricing providers.

(d)(iv)  Sensitivity of level 3 instruments measured as at fair value on the statement of financial position to changes in key assumptions

Effect of changes of significant unobservable assumptions to reasonable possible alternative assumptions

For level 3 investments, other than commercial mortgages and unquoted corporate bonds, the Group does not use internal models to value the investments but rather obtains valuations from external parties. The Group reviews the appropriateness of these valuations on the following basis:

·   For investment property and owner occupied property (including property that is classified as held for sale), the valuations are obtained from external valuers and are assessed on an individual property basis. The principle assumptions will differ depending on the valuation technique employed and sensitivities are determined by flexing the key inputs listed in the following table using knowledge of the investment property market.

·   Private equity fund valuations are provided by the respective managers of the underlying funds and are assessed on an individual investment basis, with an adjustment made for significant movements between the date of the valuation and the end of the reporting period. Sensitivities are determined by comparison to the private equity market.

·   Unquoted corporate bonds are valued using internal models on an individual instrument basis. Sensitivities are determined by adjusting internally estimated credit spreads.

·   Commercial mortgage valuations are obtained from internal models on an individual instrument basis. Sensitivities are determined by adjusting the spread added to the current base rate.

·   Contingent consideration asset valuation is provided by an external valuer using a binominal tree option pricing model. Sensitivities are determined through adjusting probabilities applied to expected payout patterns.

The shareholder is directly exposed to movements in the value of level 3 investments held by the shareholder business (to the extent they are not offset by opposite movements in investment and insurance contract liabilities). Movements in level 3 securities held by the other risk segments are offset by an opposite movement in investment and insurance contract liabilities and therefore the shareholder is not directly exposed to such movements unless they are sufficiently severe to cause the assets of the participating business to be insufficient to meet the obligations to policyholders.

Changing unobservable inputs in the measurement of the fair value of level 3 financial assets to reasonably possible alternative assumptions would not have a significant impact on profit for the year or total assets.

The table below presents quantitative information about the significant unobservable inputs for level 3 instruments:

	Fair value
2015	£m	Valuation technique	Unobservable input	Range (weighted average)
Investment property and owner occupied property	9,496	Income capitalisation	Equivalent yield Estimated rental value        per square metre per annum	2.1% to 15.5% (5.2%) £3 to £2,422 (£240)
Investment property (hotels)	515	Income capitalisation	Equivalent yield Estimated rental value per room per annum	4.6% to 7.2% (5.9%) £995 to £13,748 (£5,632)
Investment property and owner occupied property	122	Market comparison	Estimated value per square metre	£2 to £14,604 (£4,246)
Equity securities and interests in pooled investment funds and investments in associates at FVTPL  (private equity investments)	905	Adjusted net asset value	Adjustment to net asset value1	N/A
Debt securities (commercial mortgages)	382	Discounted cash flow	Credit spread	1.9% to 2.6% (2.2%)
Debt securities (unquoted corporate bonds)	270	Discounted cash flow	Credit spread	0.2% to 4.0% (1.9%)
Debt securities (other)	135	Single broker	Single broker indicative price2	N/A

¹    A Group level adjustment is made for significant movements in private equity values.

²      Debt securities which are valued using single broker indicative quotes are disclosed in level 3 in the fair value hierarchy. No adjustment is made to these prices

	Fair value
2014	£m	Valuation technique	Unobservable input	Range (weighted average)
Investment property and owner occupied property	8,753	Income capitalisation	Equivalent yield Estimated rental value  per square metre per annum	3.8% to 12.9% (5.5%) £11 to £2,422 (£345)
Investment property (hotels)	312	Income capitalisation	Equivalent yield Estimated rental value per room per annum	4.6% to 7.3% (6.2%) £215 to £11,905 (£3,818)1
Investment property and owner occupied property	1,337	Discounted cash flow	Internal rate of return Terminal capitalisation rate	6.0% to 10.5% (7.3%) 5.3% to 9.5% (6.6%)
Investment property and owner occupied property	124	Market comparison	Estimated value per square metre	£2 to £10,764 (£2,591)
Equity securities and interests in pooled investment funds and investments in associates at FVTPL  (private equity investments)	923	Adjusted net asset value	Adjustment to net asset value2	N/A
Debt securities (commercial mortgages)	274	Discounted cash flow	Credit spread	1.9% to 2.6% (2.1%)
Debt securities (unquoted corporate bonds)	237	Discounted cash flow	Credit spread	0.1% to 4.0% (1.5%)
Debt securities (other)	1,132	Single broker	Single broker indicative price3	N/A

¹    Restated.

²    A Group level adjustment is made for significant movements in private equity values.

³      Debt securities which are valued using single broker indicative quotes are disclosed in level 3 in the fair value hierarchy. No adjustment is made to these prices.

(e)     Assets and liabilities not carried at fair value

The table below presents estimated fair values of assets and liabilities whose carrying value does not approximate fair value. Fair values of assets and liabilities are based on observable market inputs where available, or are estimated using other valuation techniques.

		As recognised in the consolidated statement of financial position line item		Classified as held for sale		Total carrying value		Fair value
		2015	2014	2015	2014	2015	2014	2015	2014
	Notes	£m	£m	£m	£m	£m	£m	£m	£m
Assets
Loans secured by mortgages	22	87	107	-	2,230	87	2,337	84	2,426
Liabilities
Non-participating investment contract liabilities	35,26	4	4	-	2,118	4	2,122	4	2,285
Subordinated notes	36,26	499	499	-	223	499	722	530	800
Subordinated guaranteed bonds	36	502	502	-	-	502	502	579	580
Mutual Assurance Capital Securities	36	317	611	-	-	317	611	345	643

The estimated fair values for subordinated liabilities are based on the quoted market offer price. The estimated fair values of the other instruments detailed above are calculated by discounting the expected future cash flows at current market rates.

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).

The table below presents the instruments as detailed above measured at fair value by level of the fair value hierarchy.

	Level 1		Level 2		Level 3		Total
	2015	2014	2015	2014	2015	2014	2015	2014
	£m	£m	£m	£m	£m	£m	£m	£m
Assets
Loans secured by mortgages	-	-	84	2,426	-	-	84	2,426
Liabilities	-		-		-		-
Non-participating investment contract liabilities	-	-	-	-	4	2,285	4	2,285
Subordinated notes	-	-	530	800	-	-	530	800
Subordinated guaranteed bonds	-	-	579	580	-	-	579	580
Mutual Assurance Capital Securities	-	-	345	643	-	-	345	643

44.  Statement of cash flows

The tables below provide further analysis of the balances in the statement of cash flows.

(a)     Change in operating assets

	2015	2014
	£m	£m
Investment property	(1,061)	(1,633)
Equity securities and interests in pooled investment funds	(889)	3,190
Debt securities	(2,506)	(7,716)
Derivative financial instruments	1,063	(1,270)
Reinsurance assets	518	(60)
Investments in associates and joint ventures	(1,042)	(2,697)
Receivables and other financial assets and other assets	(281)	(333)
Deferred acquisition costs	114	7
Loans	(593)	(165)
Assets held for sale	(1,930)	(2,778)
Change in operating assets	(6,607)	(13,455)

(b)       Change in operating liabilities

	2015	2014
	£m	£m
Other financial liabilities and other liabilities	(820)	1,617
Deposits received from reinsurers	(507)	53
Pension and other post-retirement benefit provisions	21	(12)
Deferred income	(38)	(36)
Insurance contract liabilities	(630)	3,294
Investment contract liabilities	4,945	6,491
Change in liability for third party interest in consolidated funds	285	(2,458)
Liabilities held for sale	786	2,751
Change in operating liabilities	4,042	11,700

(c)     Non-cash items relating to investing and financing activities

		2015	2014
		£m	£m
Gain on sale of subsidiaries excluding transaction costs and provision recognised on disposal		(1,136)	-
Gain on disposal of property, plant and equipment		(6)	-
Depreciation of property, plant and equipment		16	16
Amortisation of intangible assets		51	41
Impairment losses on intangible assets		11	47
Impairment losses on property, plant and equipment		4	-
Impairment losses reversed on property, plant and equipment		(5)	(5)
Impairment losses on deferred acquisition costs		-	9
Other interest cost		7	6
Finance costs		84	107
Share of profit from associates and joint ventures		(43)	(32)
Non-cash and other items		(1,017)	189

(d)     Disposal of subsidiaries

		2015
	Notes	£m
Investment property		1,343
Loans		2,235
Equity securities and interests in pooled investment funds		12,415
Debt securities		11,206
Other assets of operations disposed of excluding cash and cash equivalents		1,354
Non-participating insurance contract liabilities		(9,455)
Non-participating investment contract liabilities		(15,195)
Other liabilities of operations disposed of		(2,702)
Net assets disposed of		1,201
Items transferred to profit or loss on disposal of subsidiaries	12	(237)
Gain on sale	1	1,102
Transaction costs		21
Provision recognised on disposal of subsidiaries		13
Total cash consideration	1	2,100
Cash and cash equivalents disposed of	1	(500)
Cash inflow from disposal of subsidiary		1,600

There were no operations disposed of in the year ended 31 December 2014.

45.  Contingent liabilities and contingent assets

Contingent liabilities are possible obligations of the Group of which timing and amount are subject to significant uncertainty. Contingent liabilities are not recognised on the consolidated statement of financial position but are disclosed, unless they are considered remote. If such an obligation becomes probable and the amount can be measured reliably it is no longer considered contingent and is recognised as a liability.

Conversely, contingent assets are possible benefits to the Group. Contingent assets are only disclosed if it is probable that the Group will receive the benefit.

(a)     Annuity sales

Following an earlier thematic review which concluded in 2014, the Financial Conduct Authority (FCA) commenced in mid-2015 a sample-based review of non-advised annuity sales from a selection of firms across the industry in which Standard Life has been participating. This review has focussed on processes for identifying and explaining eligibility for enhanced annuity options.

The Group has cooperated with the FCA's requests for information and has carried out analysis including an initial sampling of historical sales. We are currently analysing the implications of this sample for relevant components of our annuity population. We do not expect to know the outcome of the FCA's review until later in 2016. 

The outcome and consequences of our further analysis and the FCA review are uncertain but it is possible that, for relevant components of our annuity population, these consequences could include requirements to compensate customers who could have obtained a more favourable annuity rate.  Ahead of Standard Life completing further analysis and learning the outcome of the FCA's review, it is not practicable to determine an estimate of the financial effect of this contingent liability. In addition, it is possible that any financial impact may be mitigated by the Group's professional indemnity insurance.

(b)     Legal proceedings and regulations

The Group, like other financial organisations, is subject to legal proceedings and complaints in the normal course of its business. While it is not practicable to forecast or determine the final results of all pending or threatened legal proceedings, the Directors do not believe that such proceedings (including litigation) will have a material effect on the results and financial position of the Group.

The Group is subject to insurance solvency regulations in all of the territories in which it issues insurance and investment contracts, and it has complied in all material respects with local solvency and other regulations. Therefore, there are no contingencies in respect of these regulations.

(c)     Unclaimed Asset Trust (UAT)

The UAT was established in July 2006. It holds shares and cash which were allocated to eligible members of The Standard Life Assurance Company at the date of demutualisation where those eligible members have not yet claimed their entitlement. Dividends paid on the shares held by the UAT are also held in the UAT until the related shares are claimed. The Scheme of Demutualisation sets a 10-year time limit, ending in July 2016, for those eligible members to claim their entitlements. On expiry of the UAT in July 2016, the ownership of any assets remaining in the UAT would be transferred to the Company, for general corporate purposes including charitable donations. The Board intends that the assets will be used for charitable purposes. At 31 December 2015 the UAT held cash of £47m (2014: £32m). The number of shares held by the UAT is presented in Note 29. The position at July 2016 will depend on the actions of eligible members and the success of the ongoing efforts to trace eligible members.

46.  Commitments

The Group has contractual commitments in respect of expenditure on investment property, funding arrangements and leases which will be payable in future periods. These commitments are not recognised on the Group's statement of financial position at the year end but are disclosed to give an indication of the Group's future committed cash flows.

All Group leases are operating leases, being leases where the lessor retains substantially all the risks and rewards of the ownership of the leased asset.

(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.  

(b)     Unrecognised financial instruments

The Group has committed the following unrecognised financial instruments to customers and third parties.

	2015	2014
	£m	£m
Commitments to extend credit with an original term to maturity of one year or less	-	1
Other commitments	343	300

Included in other commitments of £343m (2014: £300m) is £291m (2014: £300m) committed by consolidated private equity funds. These commitments will be funded through contractually agreed additional investments both by the Group, through its controlling interests, and the funds' non-controlling interests. The level of funding provided by each will not necessarily be in line with the current ownership profile of the funds. 

(c)     Operating lease commitments

The Group has entered into commercial non-cancellable leases on certain property, plant and equipment where it is not in the best interest of the Group to purchase these assets. Such leases have varying terms, escalation clauses and renewal rights.

The future aggregate minimum lease payments under non-cancellable operating leases from continuing operations are as follows:

	2015	2014
	£m	£m
Not later than one year	30	36
Later than one year and no later than five years	69	61
Later than five years	111	63
Total operating lease commitments	210	160

47.  Employee share-based payments

The Group operates share incentive plans for its employees. These generally take the form of an award of options or shares in Standard Life plc (equity-settled share based payments) but can also take the form of a cash award based on the share price of Standard Life plc (cash-settled share based payments). All the Group's incentive plans have conditions attached before the employee becomes entitled to the award. These can be performance and/or service conditions (vesting conditions) or the requirement of employees to save in the save-as-you-earn scheme (non-vesting condition). The period over which all vesting conditions are satisfied is the vesting period and the awards vest at the end of this period.

For all share-based payments services received for the incentive granted are measured at fair value.

For cash-settled share-based payment transactions, services received are measured at the fair value of the liability. The fair value of the liability is remeasured at each reporting date and any changes in fair value are recognised in the consolidated income statement.

For equity-settled share-based payment transactions, the fair value of services received is measured by reference to the fair value of the equity instruments at the grant date. The fair value of the number of instruments expected to vest is charged to the income statement over the vesting period with a corresponding credit to the equity compensation reserve in equity.

At each period end the Group reassesses the number of equity instruments expected to vest and recognises any difference between the revised and original estimate in the consolidated income statement with a corresponding adjustment to the equity compensation reserve.

At the time the equity instruments vest, the amount recognised in the equity compensation reserve in respect of those equity instruments is transferred to retained earnings.

Share options

(i)       Long-term incentive plans

The Group operates the following long-term incentive plans.

Plan	Recipients	Conditions which must be met prior to vesting
Long-term incentive plan (LTIP)	Executives and senior management	Service and performance conditions as set out in the Directors' remuneration report
Standard Life Investments long-term incentive plan (Standard Life Investments LTIP)	Executives and senior management of Standard Life Investments	Service and performance conditions as set out in the Directors' remuneration report
Restricted stock plan (RSP)	Executives (other than executive Directors) and senior management	Service, or service and performance conditions. These are tailored to the individual award

All of the awards are equity-settled other than awards made under the Standard Life Investments LTIP in respect of employees in the US, France and Asia which are cash-settled.

(ii)      Short-term incentive plan (annual bonus deferred shares)

The majority of the members of the executive and senior management including executive Directors participate in the Group annual bonus. Under the terms of the 2015 and 2014 annual bonus, half of any bonus earned by executive Directors and members of the executive team above 25% of salary will be settled in nil-cost options which are deferred for a period of two years, subject to the deferred amount being worth 10% or more of salary. Further details of the annual bonus are set out in the Directors' remuneration report.

Employees may forfeit some or all of awards made under any of the above share-based payment schemes if they leave the Group prior to the end of the awards' vesting periods.

(iii)     Sharesave (Save-as-you-earn)

The Group operates Save-as-you-earn (SAYE) plans, which allow eligible employees in the UK and Ireland the opportunity to save a monthly amount from their salaries, over either a three or five year period, which can be used to purchase shares in the Company. The shares can be purchased at the end of the savings period at a predetermined price. Employees are granted a predetermined number of options based on the monthly savings amount and duration of their contract. The conditions attached to the options are that the employee remains in employment for three years after the grant date of the options and that the employee satisfies the monthly savings requirement. Settlement is made in the form of shares.

Share awards

(i)       Share incentive plan

The Group operates a share incentive plan, allowing employees the opportunity to buy shares from their salary each month. The maximum purchase that an employee can make in any year is £1,800. The Group offers to match the number of shares bought up to a value of £25 each month. The matching shares awarded under the share incentive plan are granted at the end of each month. The matching shares are generally subject to a three year service period.

(a)     Options granted

The number, weighted average exercise price and weighted average remaining contractual life for options outstanding during the year are as follows:

	2015					2014
	Long-term incentive plans (excluding RSP)	RSP	Short-term incentive plan	Sharesave	Weighted average exercise price for Sharesave	Long-term incentive plans (excluding RSP)	RSP	Short-term incentive plan	Sharesave	Weighted average exercise price for Sharesave
Outstanding at 1 January	25,131,521	2,732,361	557,301	8,235,878	228p	36,045,486	2,680,153	686,008	8,686,357	184p
Granted	14,096,423	1,423,236	305,253	2,091,965	328p	9,268,993	1,547,881	270,053	2,855,756	296p
Forfeited	(2,516,468)	(431,168)	-	(311,887)	260p	(8,294,265)	(596,595)	(36,876)	(280,728)	185p
Exercised	(8,640,212)	(772,747)	(324,828)	(847,383)	198p	(11,888,693)	(899,078)	(361,884)	(2,948,049)	157p
Expired	-	-	-	(914)	157p	-	-	-	(15,763)	165p
Cancelled	-	-	-	(59,413)	267p	-	-	-	(61,695)	254p
Outstanding at 31 December	28,071,264	2,951,682	537,726	9,108,246	255p	25,131,521	2,732,361	557,301	8,235,878	228p
Exercisable at 31 December	-	-	-	84,517	220p	10,365	9,931	-	227,318	157p
Weighted average remaining contractual life of options outstanding (years)	2.18	1.96	1.31	2.34		2.40	1.81	1.19	2.76

The exercise price for options granted under long-term and short-term incentive schemes is nil. Fair value of options granted under the Group's incentive schemes is determined using a relevant valuation technique, such as the Black Scholes option pricing model.

The following table shows the weighted average assumptions that were considered in determining the fair value of options granted during the year and the share price at exercise of options exercised during the year.

	Long-term incentive plans (excluding RSP)	RSP	Short-term       incentive plan	Sharesave
Options granted during the year
Grant date	27 March 2015 and 30 March 2015	Throughout	27 March 2015	9 October 2015
Share price at grant date	480p	457p	477p	425p
Fair value at grant date	480p	457p	477p	81p
Exercise price	Nil	Nil	Nil	328p-330p
Dividends	The plans include the entitlement to the receipt of dividends in respect of awards that ultimately vest between the date of grant and the vesting date	The plans include the entitlement to the receipt of dividends in respect of awards that ultimately vest between the date of grant and the vesting date	The plan includes the entitlement to the receipt of dividends in respect of awards that ultimately vest between the date of grant and the vesting date	No dividend entitlement
Option term (years)	3.38	2.63	3.24	3.42
Options exercised during the year
Share price at time of exercise	469p	473p	468p	424p

No departures from share option schemes are expected at grant date, with any leavers being accounted for on departure. In determining the fair value of options granted under the Sharesave scheme the historic volatility of the share price over a period of up to five years and a risk free rate determined by reference to swap rates was also considered.

The following table shows the range of exercise prices of options outstanding at 31 December 2015. All options are exercisable for a period of six months after the vesting date.

	2015	2014
	Number of options outstanding	Number of options outstanding
Long-term incentive plans
£nil	31,022,946	27,863,882
Short-term incentive plan
£nil	537,726	557,301
Sharesave
157p	2,727,416	3,129,728
207p-221p	318,675	823,405
237p-272p	1,385,894	1,465,743
273p-296p	2,592,093	2,817,002
328p-330p	2,084,168	-
Outstanding at 31 December	40,668,918	36,657,061

(b)     Share incentive plan

	2015	2014
Number of instruments granted1	261,123	318,208
Share price at date of grant2	431p	389p
Fair value per granted instrument at grant date2	431p	389p

¹    Included in the number of instruments granted are 11,433 (2014: 53,598) rights to shares granted to eligible employees in Germany, Austria and Canada.

²    Weighted average.

The fair value of instruments granted under the share incentive plan is calculated by reference to the share price at grant date. The plan includes the entitlement to the receipt of dividends in respect of awards that ultimately vest between the date of grant and the vesting date. At the grant date all awards are expected to vest. No departures are expected at the grant date, with leavers being accounted for on departure. 

(c)     Employee share-based payment expense

The amounts recognised as an expense in Note 8 for equity-settled share-based payment transactions with employees are as follows:

	2015	2014
	£m	£m
Share options granted under long-term incentive plans	29	22
Share options granted under Sharesave	1	1
Share options granted under short-term incentive plan	2	1
Matching shares granted under share incentive plans	1	1
Expense from continuing operations	33	25
Expense from discontinued operations	1	2
	34	27

Additionally, the Group incurred an expense for cash-settled share-based payment schemes from continuing operations of £2m in 2015 (2014: £2m) and £nil (2014: £nil) from discontinued operations. The liability for cash-settled share-based payments outstanding at 31 December 2015 is £3m (2014: £6m).

48.  Related party transactions

(a)     Transactions and balances with related parties

In the normal course of business, the Group enters into transactions with related parties that relate to insurance and investment management business. 

Transactions with related parties carried out by the Group during the year were as follows:

	2015	2014
	£m	£m
Sale to
Associates	1,018	451
Joint ventures	-	1
Other related parties	53	94
	1,071	546
Purchase from
Associates	1,495	816
Joint ventures	9	14
	1,504	830

Sales to and amounts due from other related parties include management fees received/receivable from non-consolidated investment vehicles managed by Standard Life Investments.

The year end balances arising from transactions carried out by the Group with related parties are as follows:

	2015	2014
	£m	£m
Due from related parties
Associates	24	16
Joint ventures	2	2
	26	18

In addition to the amounts shown above, the Group's defined benefit pension plans have assets of £579m (2014: £1,553m) invested in investment vehicles managed by the Group.

(b)     Compensation of key management personnel

Key management personnel comprise 20 people (2014: 19 people) within the Group, including all Directors, both executive and non-executive and certain direct reports of the position of Chief Executive. Detailed disclosures of Directors' remuneration for the year and transactions in which the Directors are interested are contained within the audited section of the Directors' remuneration report.

The summary of compensation of key management personnel is as follows:

	2015	2014
	£m	£m
Salaries and other short-term employee benefits	8	9
Post-employment benefits	1	1
Share-based payments	5	4
Termination benefits	2	-
Total compensation of key management personnel	16	14

(c)     Transactions with key management personnel and their close family members

All transactions between key management and their close family members, and the Group during the year are on terms which are equivalent to those available to all employees of the Group.

During the year to 31 December 2015, key management personnel and their close family members contributed £6m (2014: £1m) to products sold by the Group. At 31 December 2015 the total value of key management personnel's investments in Group products was £19m (2014: £22m).

49.    Capital statement

Capital management policies and risk management objectives

Capital can be measured on a number of different bases, which are set out in the Strategic report Section 1.3 - Chief Financial Officer's overview. The capital statement shows capital based on definitions used for regulatory reporting purposes.

Managing capital is the ongoing process of determining and maintaining the quantity and quality of capital appropriate for the Group, and ensuring capital is deployed in a manner consistent with the expectations of our stakeholders. For these purposes, the Board considers our key stakeholders to be the providers of capital (our equity holders, policyholders and holders of our subordinated liabilities) and the Prudential Regulation Authority (PRA).

There are two primary objectives of capital management within the Group. The first objective is to ensure that capital is, and will continue to be, adequate to maintain the required level of safety and stability of the Group and hence to provide an appropriate degree of security to our stakeholders - this aspect is measured by the Group's regulatory solvency position. The second objective is to create equity holder value by driving profit attributable to equity holders.

The capital management policy forms one pillar of the Group's overall management framework. Most notably, it operates alongside, and complements, the strategic investment policy and the Group risk policies. By integrating policies in this way, the Group is working towards a capital management framework that robustly links the process of capital allocation, value creation and risk management.

The capital requirements of each business unit are forecast on a periodic basis, and the requirements are assessed against both forecast available capital and local regulatory capital requirements. In addition, internal rates of return achieved on capital invested are assessed against hurdle rates, which are intended to represent the minimum acceptable return given the risks associated with each investment. The capital planning process is the responsibility of the Chief Financial Officer. Capital plans are ultimately subject to approval by the Board.

The formal procedures for identifying and assessing risks that could affect the capital position of the Group are described in the risk management policies set out in Note 41.

Regulatory capital

The Group operates in a number of geographical regions, and local regulators, primarily the PRA, specify rules and guidance for the minimum level of capital required to meet local requirements. 

Until 31 December 2015, the PRA required all insurance companies and financial conglomerates to maintain capital resources in excess of their capital resources requirement (CRR). From 1 January 2016, the Group will be required to maintain and report capital under the Solvency II regime. This note sets out the Group's capital resources under the regulatory requirements in place at 31 December 2015.

For the purposes of calculating the Group's CRR at 31 December 2015, capital resources include the assets in excess of liabilities, valued on a regulatory basis, and certain other components of capital. Certain items that are classified as liabilities under IAS 32 Financial Instruments: Disclosure and Presentation were treated as capital. For the Group, this applies to its subordinated guaranteed bonds, Mutual Assurance Capital Securities and subordinated notes. The CRR represents the total of the individual capital resources requirements of each regulated company in the Group.

In addition to the requirement to maintain capital resources in excess of its CRR, under the regulatory regime at 31 December 2015, each regulated company in the Group was required to identify the major risks it faces and, if appropriate, quantify the amount and type of capital it believed was appropriate to mitigate those risks. This individual capital assessment (ICA) reflects each company's view of the adequacy of its capital resources.

There are many factors which affect the Group's capital resources. The determination of the liabilities includes various assumptions including potential changes in market conditions and the actions management might take as a result of those changes. Changes in market conditions and other variables have the potential to significantly affect the capital position. Poor investment returns could depress capital resources, but this could be mitigated by changing the asset portfolio and by the level of bonuses declared. Future annuitant longevity could be significantly different from that assumed in the calculation of the liabilities.

Capital structure

The Group is classified as an insurance group by the PRA. The largest regulated entity within the Group is Standard Life Assurance Limited (SLAL), which undertakes life assurance and pension business principally in the UK, Ireland and Germany.

The majority of life assurance and pensions business undertaken by UK regulated entities is written within long-term business funds within each regulated company. These long-term business funds are distinct from the equity holders' funds. Business written prior to demutualisation, and the increments to that business, are written in the Heritage With Profits Fund (HWPF). 

Business written after demutualisation is written in the other long-term business funds, principally the Proprietary Business Fund (PBF). 

The HWPF's capital resources of £4,044m at 31 December 2015 (2014: £4,317m) and future surplus arising can be used to provide support for the HWPF, enhance payments to with profits policyholders or, in relation to the recourse cash flows (as explained in accounting policy (iv) Note 33), transfer defined amounts out of the fund to accrue to the benefit of equity holders. Additional restrictions are placed on the HWPF by the Scheme of Demutualisation (the Scheme), which provides that the recourse cash flows will be subject to a solvency test which restricts transfers of the recourse cash flows if, as a result of the transfer, the HWPF would have a realistic deficit or would have a regulatory surplus below the level which the board of SLAL considers necessary to declare bonuses, in accordance with reasonable benefit expectations of with profits policyholders, without creating a regulatory deficit. 

Any surplus within the PBF is attributable to equity holders. Capital within the PBF may be made available to meet requirements elsewhere in the Group subject to meeting the regulatory requirements of the fund and any further restrictions imposed by the Scheme. The regulatory results of SLAL have the most significant impact on the Group capital position at 31 December 2015. The other significant components are insurance entities in Asia and non-insurance entities, including Standard Life Investments Limited and Standard Life plc. The capital position at 31 December 2014 includes the held for sale insurance entities in Canada which were sold on 30 January 2015.

The Group's capital position is analysed between UK regulated life business, overseas life operations and other activities. The UK regulated life business is analysed by the nature of the underlying funds and includes German and Irish business written by branches of UK regulated companies. Other activities mainly comprise investment management and group corporate centre. The Group's capital position, based on draft regulatory returns, is set out in the following table. For the year ended 31 December 2014, this includes the capital position and contract liabilities of the Canadian business classified as held for sale on the consolidated statement of financial position.

	UK regulated life business
	Heritage With Profits Fund1	Proprietary Business Fund	Life business equity holders' funds	Total UK regulated life business	Overseas life operations	Total life business	Other activities	Group total
2015	£m	£m	£m	£m	£m	£m	£m	£m
Available capital resources
Equity holders' funds
Held outside life assurance funds	-	-	834	834	236	1,070	1,323	2,393
Held within life assurance funds	-	1,609	-	1,609	-	1,609	-	1,609
Equity attributable to ordinary equity holders of Standard Life plc	-	1,609	834	2,443	236	2,679	1,323	4,002
Unallocated divisible surplus	655	-	-	655	-	655	-	655
Other sources of capital
Subordinated liabilities	-	-	-	-	-	-	1,318	1,318
Internal subordinated liabilities	-	-	819	819	-	819	(819)	-
	-	-	819	819	-	819	499	1,318
Adjustments onto regulatory basis
Changes to the valuation of contract liabilities	3,514	(69)	-	3,445	-	3,445	-	3,445
Exclusion of deferred acquisition costs and other inadmissible assets	(39)	(584)	(109)	(732)	(24)	(756)	(546)	(1,302)
Exclusion of deferred income	51	182	-	233	-	233	-	233
Changes to the valuation of other assets and liabilities	46	(1,099)	(87)	(1,140)	(55)	(1,195)	258	(937)
	3,572	(1,570)	(196)	1,806	(79)	1,727	(288)	1,439
Total available capital resources to meet regulatory requirement	4,227	39	1,457	5,723	157	5,880	1,534	7,414
Analysed as follows:
Capital not subject to constraints	-	-	1,437	1,437	63	1,500	1,369	2,869
Capital subject to constraints	4,227	39	20	4,286	94	4,380	165	4,545
Total available capital resources	4,227	39	1,457	5,723	157	5,880	1,534	7,414
Restricted assets within the long-term business fund								(1,109)
Regulatory capital resources								6,305
Regulatory capital resources requirement				3,484	94	3,578	73	3,651
Regulatory capital surplus								2,654
Analysis of contract liabilities
Participating
Insurance contracts	14,283	-	-	14,283	-	14,283	-	14,283
Investment contracts	14,716	-	-	14,716	-	14,716	-	14,716
Total participating contract liabilities	28,999	-	-	28,999	-	28,999	-	28,999
Unit linked
Insurance contracts	-	6,094	-	6,094	359	6,453	-	6,453
Investment contracts	-	92,830	-	92,830	60	92,890	-	92,890
Total unit linked liabilities	-	98,924	-	98,924	419	99,343	-	99,343
Other non-participating
Insurance contracts	9,563	5,164	-	14,727	23	14,750	3	14,753
Investment contracts	-	3	-	3	1	4	-	4
Total other non-participating liabilities	9,563	5,167	-	14,730	24	14,754	3	14,757
Total contract liabilities	38,562	104,091	-	142,653	443	143,096	3	143,099

¹    Capital resources amounting to £183m in respect of other with profits funds are disclosed within the Heritage With Profits Fund column. Participating contract liabilities amounting to £1,664m relating to the new with profits funds created at demutualisation are disclosed within the Heritage With Profits Fund column.

	UK regulated life business
	Heritage With Profits Fund1	Proprietary Business Fund	Life business equity holders' funds	Total UK regulated life business	Overseas life operations	Total life business	Other activities	Group total
2014	£m	£m	£m	£m	£m	£m	£m	£m
Available capital resources
Equity holders' funds
Held outside life assurance funds	-	-	884	884	1,418	2,302	931	3,233
Held within life assurance funds	-	1,439	-	1,439	-	1,439	-	1,439
Equity attributable to ordinary equity holders of Standard Life plc	-	1,439	884	2,323	1,418	3,741	931	4,672
Unallocated divisible surplus	688	-	-	688	-	688	-	688
Other sources of capital
Subordinated liabilities	-	-	-	-	223	223	1,318	1,541
Internal subordinated liabilities	-	-	819	819	-	819	(819)	-
	-	-	819	819	223	1,042	499	1,541
Adjustments onto regulatory basis
Changes to the valuation of contract liabilities	3,593	(67)	-	3,526	-	3,526	-	3,526
Exclusion of deferred acquisition costs and other inadmissible assets	(47)	(572)	(287)	(906)	(271)	(1,177)	(475)	(1,652)
Exclusion of deferred income	60	211	-	271	1	272	-	272
Changes to the valuation of other assets and liabilities	206	(797)	(268)	(859)	84	(775)	269	(506)
	3,812	(1,225)	(555)	2,032	(186)	1,846	(206)	1,640
Total available capital resources to meet regulatory requirement	4,500	214	1,148	5,862	1,455	7,317	1,224	8,541
Analysed as follows:
Capital not subject to constraints	-	-	1,132	1,132	538	1,670	1,039	2,709
Capital subject to constraints	4,500	214	16	4,730	917	5,647	185	5,832
Total available capital resources	4,500	214	1,148	5,862	1,455	7,317	1,224	8,541
Restricted assets within the long-term business fund								(1,172)
Regulatory capital resources								7,369
Regulatory capital resources requirement				3,637	747	4,384	73	4,457
Regulatory capital surplus								2,912
Analysis of contract liabilities2
Participating
Insurance contracts	15,397	-	-	15,397	702	16,099	-	16,099
Investment contracts	15,191	-	-	15,191	2	15,193	-	15,193
Total participating contract liabilities	30,588	-	-	30,588	704	31,292	-	31,292
Unit linked
Insurance contracts	-	5,512	-	5,512	3,936	9,448	-	9,448
Investment contracts	-	88,151	-	88,151	13,794	101,945	-	101,945
Total unit linked liabilities	-	93,663	-	93,663	17,730	111,393	-	111,393
Other non-participating
Insurance contracts	10,760	5,877	-	16,637	5,178	21,815	3	21,818
Investment contracts	-	295	-	295	1,819	2,114	-	2,114
Total other non-participating liabilities	10,760	6,172	-	16,932	6,997	23,929	3	23,932
Total contract liabilities	41,348	99,835	-	141,183	25,431	166,614	3	166,617

¹    Capital resources amounting to £183m in respect of other with profits funds are disclosed within the Heritage With Profits Fund column. Participating contract liabilities amounting to £1,553m relating to the new with profits funds created at demutualisation are disclosed within the Heritage With Profits Fund column.

²      Contract liabilities include the contract liabilities of the Canadian business classified as held for sale. Refer to Note 26.

Movements in capital

The movements in the total capital resources shown in the capital statement are set out below. 

	UK regulated life business
	Heritage With Profits Fund	Proprietary Business Fund	Life business equity holders funds	Total UK regulated life business	Overseas life operations	Total life business	Other activities	Group total
2015	£m	£m	£m	£m	£m	£m	£m	£m
At 1 January	4,500	214	1,148	5,862	1,455	7,317	1,224	8,541
Methodology/modelling changes	300	12	-	312	-	312	-	312
Change in assumptions used to measure life assurance contract liabilities and experience differences	294	56	-	350	-	350	-	350
New business	(10)	(187)	-	(197)	-	(197)	-	(197)
Investment surplus	(67)	56	(5)	(16)	-	(16)	-	(16)
Equity holder/inter-fund transfers	(417)	(132)	581	32	3	35	(35)	-
Dividend transfers	-	-	(190)	(190)	-	(190)	(153)	(343)
Sale of Canadian business including return of value	-	-	-	-	(1,327)	(1,327)	460	(867)
Other factors	(373)	20	(77)	(430)	26	(404)	38	(366)
At 31 December	4,227	39	1,457	5,723	157	5,880	1,534	7,414

Equity holder/inter-fund transfers of £417m (2014: £37m) includes the transfer from the HWPF to the PBF and support provided to the German With Profits Fund.

	UK regulated life business
	Heritage With Profits Fund	ProprietaryBusiness Fund	Life business equity holders funds	Total UK regulated life business	Overseas life operations	Total life business	Other activities	Group total
2014	£m	£m	£m	£m	£m	£m	£m	£m
At 1 January	4,815	204	1,763	6,782	1,538	8,320	1,299	9,619
Methodology/modelling changes	351	(2)	-	349	15	364	-	364
Change in assumptions used to measure life assurance contract liabilities and experience differences	26	55	-	81	10	91	-	91
New business	(11)	(157)	-	(168)	(8)	(176)	-	(176)
Investment surplus	(225)	53	47	(125)	126	1	-	1
Equity holder/inter-fund transfers	(37)	22	40	25	14	39	(39)	-
Dividend transfers	-	-	(296)	(296)	(191)	(487)	101	(386)
Redemption of subordinated liabilities	-	-	(294)	(294)	-	(294)	-	(294)
Other factors	(419)	39	(112)	(492)	(49)	(541)	(137)	(678)
At 31 December	4,500	214	1,148	5,862	1,455	7,317	1,224	8,541

In November 2014, the Company notified the PRA of its intention to call the Euro denominated 5.314% fixed/floating rate Mutual Assurance Capital Securities (MACS) prior to 31 December 2014. At this time these MACS became excluded from regulatory capital resources. The MACS were redeemed in full on 6 January 2015.

UK regulated life business

SLAL's regulatory solvency position is determined using the PRA's 'twin peaks' approach, which requires liabilities to be valued on both a realistic and a regulatory basis. The realistic basis removes some of the margins for prudence included in calculations under the regulatory basis. However, it requires discretionary benefits that are not considered under the regulatory basis, such as final bonuses, to be valued. The extent to which the realistic peak is more onerous than the regulatory peak increases the amount of the CRR.

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.

Capital subject to constraints for the UK regulated life business of £4,286m at 31 December 2015 (2014: £4,730m) represents capital resources held within long-term business funds, or in relation to other regulated entities, the amount of the CRR.

Overseas life operations

Capital resources of £157m (2014: £1,455m) relate mainly to operations in Asia. At 31 December 2014 these also included operations in Canada classified as held for sale. The overseas life capital subject to constraints amounted to £94m at 31 December 2015 (2014: £917m). 

Other activities

At 31 December 2015, capital resources of £1,534m (2014: £1,224m) and capital subject to constraints of £165m (2014: £185m) relate to the Group's investment management businesses and group corporate centre activities. 

Intra-group transactions

The Group, through subsidiaries and joint ventures, provides insurance and other financial services in the UK, Hong Kong, India and China. The Group also provides such services in Ireland and Germany. With the exception of the requirements of the Scheme and the intra-group subordinated debt referred to below and the capital support mechanisms, there are no formal arrangements to provide capital to particular funds or business units. Any allocations of capital would need to be approved on a case-by-case basis by the Board.

SLAL has issued subordinated loans to the Company, which SLAL treats as capital for regulatory purposes. At Group level only subordinated liabilities issued to external parties are included in the Group's capital resources.

Group capital requirement

The Group must also calculate a group regulatory capital position under the Insurance Groups Directive (IGD). The IGD calculation is a prudent aggregate value for the Group's capital resources. The capital held within the long-term business funds of approximately £4,266m (2014: £4,714m) is restricted to the level of the CRR of those funds of £3,484m (2014: £3,637m). Therefore, the Group recognises no net surplus in respect of capital within the long-term business funds.

On an IGD basis, the estimated regulatory capital position at 31 December 2015 is a surplus of £2,654m (2014: £2,912m).

The decrease in the estimated regulatory capital position is due to a £0.2bn net reduction resulting from the sale of the Canadian business comprising of:

·   The removal of its contribution to Group surplus of £0.6bn at 31 December 2014

·   The return of value to shareholders of £1.75bn during the year

·   Partially offset by the disposal proceeds of £2.2bn received in January 2015 

In respect of Group IGD regulatory reporting there were no breaches of regulatory capital requirements at any time during the year.

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.

50.  Related undertakings

The Companies Act 2006 requires disclosure of certain information about the Group's related undertakings which is set out in this note. Related undertakings are subsidiaries, joint ventures, associates and other significant holdings. In this context significant means either a shareholding greater than or equal to 20% of the nominal value of any class of shares, or a book value greater than 20% of the Group's assets.

The particulars of the Company's related undertakings at 31 December 2015 are listed below.

The ability of subsidiaries to transfer cash or other assets within the Group for example through payment of cash dividends are restricted only by local laws and regulations, and solvency requirements. These are not considered significant restrictions on the Group's ability to access or use the assets and settle the liabilities of the Group.  

The Group also has investments in Qualifying Limited Partnerships which are consolidated in these financial statements. For the Qualifying Limited Partnerships, North American Strategic Partners (Feeder) 2006 Limited Partnership and North American Strategic Partners (Feeder) 2008 Limited Partnership an exemption from filing annual accounts with Companies House has been taken in accordance with the Partnership Accounting Regulations (2008).

(a)     Subsidiaries

Name of related undertaking	Country of incorporation or residence	Share class1	% interest held
15 Ramirez de Arellano SA	Spain	Ordinary Shares	100%
1825 Financial Planning Limited	United Kingdom	Ordinary Shares	100%
28 Ribera del Loira SA	Spain	Ordinary Shares	100%
30 STMA 1 Limited	United Kingdom	Ordinary Shares	100%
30 STMA 2 Limited	United Kingdom	Ordinary Shares	100%
30 STMA 3 Limited	United Kingdom	Ordinary Shares	100%
30 STMA 4 Limited	United Kingdom	Ordinary Shares	100%
30 STMA 5 Limited	United Kingdom	Ordinary Shares	100%
330 Avenida de Aragon SL	Spain	Ordinary Shares	100%
4th Contact Limited	United Kingdom	Ordinary Shares	100%
Andaes Sarl	Luxembourg	Ordinary Shares	60%
Aurora Kaasunjakelu Oy	Finland	Ordinary Shares	45%
Bardol Inversiones SL	Spain	Ordinary Shares	60%
Bechtel Properties Limited	United Kingdom	Ordinary Shares	100%
Castlepoint General Partner Limited	United Kingdom	Ordinary Shares	100%
Castlepoint LP	United Kingdom	Ordinary Shares	50%
Castlepoint Nominee Limited	United Kingdom	Ordinary Shares	100%
City Road (Jersey) Limited	Jersey	Ordinary Shares	100%
Crawley Unit Trust	Jersey	Unit Trust	100%
Edmundsbury Nominee (No.1) Limited	United Kingdom	Ordinary Shares	100%
Edmundsbury Nominee (No.2) Limited	United Kingdom	Ordinary Shares	100%
ESP General Partner Limited Partnership	United Kingdom	Limited Partnership	50%
ESP II General Partner Limited Partnership	United Kingdom	Limited Partnership	46%
European Strategic Partners	United Kingdom	Limited Partnership	73%
European Strategic Partners II 'C'	United Kingdom	Limited Partnership	69%
Extra Verde Property BV	Netherlands	Ordinary Shares	60%
Ezraya Sp zoo	Poland	Ordinary Shares	60%
Falcon II Pavlova s.r.o.	Czech Republic	Ordinary Shares	60%
Focus Business Solutions Limited	United Kingdom	Ordinary Shares	100%
Focus Holdings Limited	United Kingdom	Ordinary Shares	100%
Focus Software Limited	United Kingdom	Ordinary Shares	100%
Focus Solutions EBT Trustee Limited	United Kingdom	Ordinary Shares	100%
Focus Solutions Group Limited	United Kingdom	Ordinary Shares	100%
G Park Management Company Limited	United Kingdom	Preference Shares	100%
Gallions Reach Shopping Park (Nominee) Limited	United Kingdom	Ordinary Shares	100%

Name of related undertaking	Country of incorporation or residence	Share class1	% interest held
Gallions Reach Shopping Park Limited Partnership	United Kingdom	Limited Partnership	100%
Gallions Reach Shopping Park Unit Trust	Jersey	Unit Trust	100%
Genesis Business Park (Freehold) Nominee 3 Limited	United Kingdom	Ordinary Shares	100%
Genesis Business Park (Leasehold) Nominee 1 Limited	United Kingdom	Ordinary Shares	100%
Genesis Business Park (Leasehold) Nominee 2 Limited	United Kingdom	Ordinary Shares	100%
GREF Almeda Park SL	Spain	Ordinary Shares	60%
GREF Jersey Esplanade Limited	Jersey	Ordinary Shares	60%
GREF Jersey Holding Limited	Jersey	Ordinary Shares	60%
GREF Jersey Ireland Holding Limited	Jersey	Ordinary Shares	60%
GREF Jersey Ireland Property Limited	Jersey	Ordinary Shares	60%
Gresham Developments Limited	Anguilla	Ordinary Shares	100%
High Street Nominee No. 1 Limited	Jersey	Ordinary Shares	100%
High Street Nominee No. 2 Limited	Jersey	Ordinary Shares	100%
Hundred Sarl	Luxembourg	Ordinary Shares	100%
Ibis (748) Limited	United Kingdom	Ordinary Shares	100%
Ibis (749) Limited	United Kingdom	Ordinary Shares	100%
Iceni Nominees (No.2) Limited	United Kingdom	Ordinary Shares	100%
Iceni Nominees (No.2A) Limited	United Kingdom	Ordinary Shares	100%
Ignis Asset Management Limited	United Kingdom	Ordinary Shares	100%
Ignis Carry Partner Limited	Cayman Islands	Ordinary Shares	100%
Ignis Cayman GP2 Limited	Cayman Islands	Ordinary Shares	60%
IGNIS Cayman GP3 Limited	Cayman Islands	Ordinary Shares	60%
Ignis Fund Managers Limited	United Kingdom	Ordinary Shares	100%
Ignis Investment Management Limited	United Kingdom	Ordinary Shares	100%
Ignis Investment Services Limited	United Kingdom	Ordinary Shares	100%
Ignis Nominees Limited	United Kingdom	Ordinary Shares	100%
Inesia SA	Luxembourg	Ordinary Shares	100%
Inhoco 3107 Limited	United Kingdom	Ordinary Shares	100%
Invest Park 3 Sp. Z.o.o.	Poland	Ordinary Shares	42%
Lake Meadows Management Company Limited	United Kingdom	Ordinary Shares	100%
Lincoln St Marks (One) Limited	United Kingdom	Ordinary Shares	100%
Lincoln St Marks (Two) Limited	United Kingdom	Ordinary Shares	100%
Lothian Development II (Nederland) BV	Netherlands	Ordinary Shares	100%
Lothian Development II SA	Belgium	Ordinary Shares	100%
Lothian Development III (Nederland) BV	Netherlands	Ordinary Shares	100%
Lothian Development III SA	Belgium	Ordinary Shares	100%
Lothian Development V (Nederland) BV	Netherlands	Ordinary Shares	100%
Maidenhead Office Park Management Company Limited	United Kingdom	Ordinary Shares	100%
Martinford Portfolio Inc	Bahamas	Ordinary Shares	100%
Mastscreen Limited	United Kingdom	Ordinary Shares	100%
NASP 2006 General Partner Limited Partnership	United Kingdom	Limited Partnership	62%
Nordic Hydro AS	Norway	Ordinary Shares	45%
Nordic Hydro Holding AS	Norway	Ordinary Shares	45%
Nordic Power AS	Norway	Ordinary Shares	45%

Name of related undertaking	Country of incorporation or residence	Share class1	% interest held
Nordic Power Torsnes AS	Norway	Ordinary Shares	45%
Nordown Developments Limited	United Kingdom	Ordinary Shares	100%
North American Strategic Partners (Feeder) 2006	United Kingdom	Limited Partnership	70%
North American Strategic Partners (Feeder) 2008 Limited Partnership	United Kingdom	Limited Partnership	100%
North American Strategic Partners GP, LP	United Kingdom	Limited Partnership	80%
North American Strategic Partners, LP	United States	Limited Partnership	40%
North East Trustees Limited	United Kingdom	Ordinary A Shares Ordinary B Shares	100%
OVG Projecten LXXIII BV	Netherlands	Ordinary Shares	60%
Pace Financial Solutions Limited	United Kingdom	Ordinary A Shares Ordinary B Shares Ordinary C Shares	100%
Pace Mortgage Solutions Limited	United Kingdom	Ordinary A Shares Ordinary B Shares	100%
Panker Invest Sarl	Luxembourg	Ordinary Shares	60%
Parnell Fisher Child & Co. Limited	United Kingdom	Ordinary Shares	100%
Parnell Fisher Child Holdings Limited	United Kingdom	Ordinary A Shares Ordinary B Shares	100%
Pearson Jones & Company (Trustees) Limited	United Kingdom	Ordinary Shares	100%
Pearson Jones Nominees Limited	United Kingdom	Ordinary Shares	100%
Pearson Jones plc	United Kingdom	Ordinary A Shares Ordinary B Shares	100%
Pitcroft Properties Limited	United Kingdom	Ordinary Shares	100%
PLC Poland 20 Sp zoo	Poland	Ordinary Shares	60%
PLC Poland 25 Sp zoo	Poland	Ordinary Shares	60%
PLC Poland 34 Sp zoo	Poland	Ordinary Shares	60%
Property Corporate Director 1 Limited	United Kingdom	Ordinary Shares	100%
Property Corporate Director 2 Limited	United Kingdom	Ordinary Shares	100%
Ravensbourne Retail Park Limited	United Kingdom	Ordinary Shares	100%
Retail Park Hana a.s.	Czech Republic	Ordinary Shares	60%
Retail Park Ostrava a.s.	Czech Republic	Ordinary Shares	60%
Scottish Mutual International Fund Managers Limited	Ireland	Ordinary Shares	100%
Scottish Mutual Investment Managers Limited	United Kingdom	Ordinary Shares	100%
Scottish Mutual PEP and ISA Managers Limited	United Kingdom	Ordinary Shares	100%
Seabury Assets Fund plc:
No.1 Fund	Ireland	OEIC	100%
The Euro VNAV Liquidity Fund	Ireland	OEIC	67%
The Sterling VNAV Liquidity Fund	Ireland	OEIC	94%
Select Brazil Nominee Limited	United Kingdom	Ordinary Shares	60%
Select Japan (GK Holdings UK) Limited	United Kingdom	Ordinary Shares	60%
Select Japan (TK Holdings UK) Limited	United Kingdom	Ordinary Shares	60%
Select Japan GK	Japan	Limited by members	60%
Select Malta Holdings Limited	Malta	Ordinary Shares	60%
Select Property Holdings (Mauritius) Limited	Mauritius	Ordinary Shares	60%
SL (NEWCO) Limited	United Kingdom	Ordinary Shares	100%
SL Capital Infrastructure I LP	United Kingdom	Limited Partnership	45%
SL Capital Partners (US) Limited	United Kingdom	Ordinary Shares	100%
SL Capital Partners LLP	United Kingdom	Limited Liability Partnership	60%
SLA Belgium No. 1. SA	Luxembourg	Ordinary Shares	100%
SLA Germany No. 1 S.a.r.l	Luxembourg	Ordinary Shares	100%

Name of related undertaking	Country of incorporation or residence	Share class1	% interest held
SLA Germany No 2 S.a.r.l	Luxembourg	Ordinary Shares	100%
SLA Germany No 3 S.a.r.l	Luxembourg	Ordinary Shares	100%
SLA Ireland No.1 Sarl	Luxembourg	Ordinary Shares	100%
SLA Netherlands No.1 B.V.	Netherlands	Ordinary Shares	100%
SLACOM (No.10) Limited	United Kingdom	Ordinary Shares	100%
SLACOM (No.8) Limited	United Kingdom	Ordinary Shares	100%
SLACOM (No.9) Limited	United Kingdom	Ordinary Shares	100%
SLCP (General Partner CPP) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner EC) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner Edcastle) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner ESF I) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner ESF II) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner ESP 2004) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner ESP 2006) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner ESP 2008 Coinvestment) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner ESP 2008) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner ESP CAL) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner Europe VI) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner II) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner Infrastructure I) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner Infrastructure Secondary I) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner NASF I) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner NASP 2006) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner NASP 2008) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner Pearl Private Equity) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner Pearl Strategic Credit) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner SOF I) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner SOF II) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner Tidal Reach) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner USA) Limited	United Kingdom	Ordinary Shares	60%
SLCP (General Partner) Limited	United Kingdom	Ordinary Shares	60%
SLCP (Holdings) Limited	United Kingdom	Ordinary Shares	60%
SLI European Real Estate Club II LP	United Kingdom	Limited Partnership	100%
SLI European Real Estate Club LP	United Kingdom	Limited Partnership	100%
SLI Multi Asset Class Fund LP	Cayman Islands	Limited Partnership	100%
SLIF Property Investment GP Limited	United Kingdom	Ordinary Shares	100%
SLTM Limited	United Kingdom	Ordinary Shares	100%
Standard Life (Asia Pacific Holdings) Private Limited	Singapore	Ordinary Shares	100%
Standard Life (Asia) Limited	Hong Kong	Ordinary Shares	100%
Standard Life (China Holdings) Limited	Mauritius	Ordinary Shares	100%
Standard Life (London) Limited	United Kingdom	Ordinary Shares	100%
Standard Life (Mauritius Holdings) 2006 Limited	Mauritius	Ordinary Shares	100%
Standard Life Active Plus Bond Trust	United Kingdom	Unit Trust	100%
Standard Life Agency Services Limited	United Kingdom	Ordinary Shares	100%
Standard Life Anniversary Appeal	United Kingdom	N/A	50%

Name of related undertaking	Country of incorporation or residence	Share class1	% interest held
Standard Life Assurance (HWPF) Luxembourg S.a r.l.	Luxembourg	Ordinary Shares	100%
Standard Life Assurance Limited	United Kingdom	Ordinary Shares Ordinary B shares	100%
Standard Life Charitable Trust	United Kingdom	N/A	100%
Standard Life Charity Fund	United Kingdom	N/A	100%
Standard Life Client Management Limited	United Kingdom	Ordinary Shares	100%
Standard Life Employee Services Limited	United Kingdom	Ordinary Shares	100%
Standard Life European Private Equity Trust plc	United Kingdom	Ordinary Shares	55%
Standard Life European Trust	United Kingdom	Unit Trust	98%
Standard Life European Trust II	United Kingdom	Unit Trust	100%
Standard Life Finance Limited	United Kingdom	Ordinary Shares	100%
Standard Life Global Equity Trust II	United Kingdom	Unit Trust	100%
Standard Life International Limited	Ireland	Ordinary Shares	100%
Standard Life International Trust	United Kingdom	Unit Trust	100%
Standard Life Investment (Corporate Funds) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investment Company:
Investment Grade Corporate Bond Fund	United Kingdom	OEIC	54%
UK Equity High Alpha Fund	United Kingdom	OEIC	38%
European Equity Income Fund	United Kingdom	OEIC	49%
Short Duration Credit Fund	United Kingdom	OEIC	75%
Global Emerging Markets Equity Income Fund	United Kingdom	OEIC	94%
UK Equity High Income Fund	United Kingdom	OEIC	45%
UK Opportunities Fund	United Kingdom	OEIC	69%
Emerging Market Debt Fund	United Kingdom	OEIC	87%
American Equity Unconstrained Fund	United Kingdom	OEIC	47%
European Equity Growth Fund	United Kingdom	OEIC	42%
Global Equity Unconstrained Fund	United Kingdom	OEIC	36%
Japanese Equity Growth Fund	United Kingdom	OEIC	92%
UK Equity Growth Fund	United Kingdom	OEIC	45%
UK Equity Recovery Fund	United Kingdom	OEIC	44%
Global Emerging Markets Equity Fund	United Kingdom	OEIC	92%
Standard Life Investment Company II:
Standard Life Investments Corporate Debt Fund	United Kingdom	OEIC	100%
Standard Life Investments Ethical Corporate Bond Fund	United Kingdom	OEIC	54%
Standard Life Investments Global REIT Fund	United Kingdom	OEIC	47%
Standard Life Investments Short Duration Global Index Linked Bond Fund	United Kingdom	OEIC	50%
Standard Life Investments European Ethical Equity Fund	United Kingdom	OEIC	95%
Standard Life Investment Company III:
Enhanced-Diversification Growth Fund	United Kingdom	OEIC	95%
MyFolio Market I Fund	United Kingdom	OEIC	46%
MyFolio Market II Fund	United Kingdom	OEIC	53%
MyFolio Market III Fund	United Kingdom	OEIC	63%
MyFolio Market IV Fund	United Kingdom	OEIC	63%
MyFolio Market V Fund	United Kingdom	OEIC	70%
MyFolio Multi-Manager I Fund	United Kingdom	OEIC	52%
MyFolio Multi-Manager II Fund	United Kingdom	OEIC	51%
MyFolio Multi-Manager III Fund	United Kingdom	OEIC	60%

Name of related undertaking	Country of incorporation or residence	Share class1	% interest held
MyFolio Multi-Manager IV Fund	United Kingdom	OEIC	51%
MyFolio Multi-Manager V Fund	United Kingdom	OEIC	55%
MyFolio Managed I Fund	United Kingdom	OEIC	72%
MyFolio Managed II Fund	United Kingdom	OEIC	68%
MyFolio Managed III Fund	United Kingdom	OEIC	75%
MyFolio Managed IV Fund	United Kingdom	OEIC	57%
MyFolio Managed V Fund	United Kingdom	OEIC	66%
MyFolio Multi-Manager Income I Fund	United Kingdom	OEIC	48%
MyFolio Multi-Manager Income II Fund	United Kingdom	OEIC	42%
MyFolio Multi-Manager Income III Fund	United Kingdom	OEIC	51%
MyFolio Multi-Manager Income IV Fund	United Kingdom	OEIC	41%
MyFolio Multi-Manager Income V Fund	United Kingdom	OEIC	54%
MyFolio Managed Income I Fund	United Kingdom	OEIC	52%
MyFolio Managed Income II Fund	United Kingdom	OEIC	52%
MyFolio Managed Income III Fund	United Kingdom	OEIC	52%
MyFolio Managed Income IV Fund	United Kingdom	OEIC	51%
MyFolio Managed Income V Fund	United Kingdom	OEIC	58%
Standard Life Investment Company IV:
Standard Life Investments UK Property Fund	United Kingdom	OEIC	85%
Standard Life Investment Funds Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments - India Advantage Fund	Mauritius	Ordinary Shares	100%
Standard Life Investments (France) Limited	France	Ordinary Shares	100%
Standard Life Investments (General Partner CRED) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (General Partner EPGF) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (General Partner European Real Estate Club II) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (General Partner European Real Estate Club) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (General Partner GARS) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (General Partner MAC) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (General Partner PDFI) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (General Partner UK PDF) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (General Partner UK Shopping Centre Feeder Fund LP) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (Holdings) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (Hong Kong) Limited	Hong Kong	Ordinary Shares	100%
Standard Life Investments (Japan) Limited	Japan	Ordinary Shares	100%
Standard Life Investments (Jersey) Limited	Jersey	Ordinary Shares	100%
Standard Life Investments (Mutual Funds) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (PDF. No 1) Limited	Jersey	Ordinary Shares	50%
Standard Life Investments (Private Equity) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (Schweiz) AG	Switzerland	Ordinary Shares	100%
Standard Life Investments (Trustee No 1 UK PDF) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (Trustee No 10 UK PDF) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (Trustee No 11 UK PDF) Limited	United Kingdom	Ordinary Shares	100%

Name of related undertaking	Country of incorporation or residence	Share class1	% interest held
Standard Life Investments (Trustee No 12 UK PDF) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (Trustee No 2 UK PDF) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (Trustee No 3 UK PDF) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (Trustee No 4 UK PDF) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (Trustee No 5 UK PDF) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (Trustee No 6 UK PDF) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (Trustee No 7 UK PDF) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (Trustee No 8 UK PDF) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (Trustee No 9 UK PDF) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments (USA) Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments Brent Cross General Partner Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments Brent Cross LP	United Kingdom	Limited Partnership	100%
Standard Life Investments Dynamic Distribution Fund	United Kingdom	Unit Trust	49%
Standard Life Investments European Real Estate Club (Offshore Feeder) Limited	Cayman Islands	Ordinary Shares	100%
Standard Life Investments European Real Estate Club II (Offshore Feeder) Limited	Cayman Islands	Ordinary Shares	100%
Standard Life Investments Global Absolute Return Strategies Fund	United Kingdom	Unit Trust	71%
Standard Life Investments Global Real Estate Fund	United Kingdom	Unit Trust	60%
Standard Life Investments Global SICAV:
Asian Equities	Luxembourg	SICAV	51%
China Equities	Luxembourg	SICAV	63%
European Equities	Luxembourg	SICAV	69%
Global Bond	Luxembourg	SICAV	88%
Global Equities	Luxembourg	SICAV	91%
Global Inflation-linked Bond	Luxembourg	SICAV	61%
Japanese Equities	Luxembourg	SICAV	95%
Global High Yield Bond	Luxembourg	SICAV	77%
Euro Govt All Stocks	Luxembourg	SICAV	100%
Global REIT Focus	Luxembourg	SICAV	81%
India Equities	Luxembourg	SICAV	99%
European Smaller Companies	Luxembourg	SICAV	50%
European Equity Unconstrained	Luxembourg	SICAV	90%
Absolute Return Global Bond Strategies	Luxembourg	SICAV	87%
Global Emerging Markets Equity Unconstrained	Luxembourg	SICAV	81%
Global Corporate Bond	Luxembourg	SICAV	86%
Global Emerging Markets Local Currency Debt	Luxembourg	SICAV	97%
Global Focused Strategies	Luxembourg	SICAV	56%
Emerging Market Corporate Bond	Luxembourg	SICAV	87%
Continental European Equity Income	Luxembourg	SICAV	55%
Total Return Credit	Luxembourg	SICAV	100%
Enhanced Diversification GEM Equities Fund	Luxembourg	SICAV	99%
Standard Life Investments GS (Mauritius Holdings) Limited	Mauritius	Ordinary Shares	99%
Liability Solutions ICAV:
Standard Life Investments Liability Aware Absolute Return III Fund	Ireland	ICAV	100%
Standard Life Investments Liability Aware Absolute Return III Nominal Profile Fund	Ireland	ICAV	100%
Standard Life Investments Liability Aware Absolute Return III Real Profile Fund	Ireland	ICAV	100%

Name of related undertaking	Country of incorporation or residence	Share class1	% interest held
Standard Life Investments Limited	United Kingdom	Ordinary Shares	100%
Standard Life Investments Multi Asset Class Company	Cayman Islands	Ordinary Shares	100%
Standard Life Investments Securities LLC	United States	Ordinary Shares	100%
Standard Life Investments Strategic Bond Fund	United Kingdom	Unit Trust	63%
Standard Life Investments UK PDF Investment Limited Partnership	United Kingdom	Limited Partnership	100%
Standard Life Investments UK Property Development Fund L.P.	United Kingdom	Limited Partnership	39%
Standard Life Investments UK Property Feeder Trust:
Standard Life Investments UK Property Accumulation Feeder Fund	United Kingdom	Unit Trust	68%
Standard Life Investments UK Retail Park Trust	Jersey	Unit Trust	54%
Standard Life Investments UK Shopping Centre Feeder Fund Company Limited	Jersey	Ordinary Shares	100%
Standard Life Investments UK Shopping Centre Trust	Jersey	Unit Trust	48%
Standard Life Japan Trust	United Kingdom	Unit Trust	85%
Standard Life Lifetime Mortgages Limited	United Kingdom	Ordinary Shares	100%
Standard Life Master Trust Co. Ltd	United Kingdom	Ordinary Shares	100%
Standard Life Multi-Asset Trust	United Kingdom	Unit Trust	100%
Standard Life North American Trust	United Kingdom	Unit Trust	100%
Standard Life Oversea Holdings Limited	United Kingdom	Ordinary Shares	100%
Standard Life Pacific Basin Trust	United Kingdom	Unit Trust	98%
Standard Life Pan European Trust	United Kingdom	Unit Trust	100%
Standard Life Pension Funds Limited	United Kingdom	N/A	100%
Standard Life Portfolio Investments Limited	United Kingdom	Ordinary Shares	100%
Standard Life Premises Services Limited	United Kingdom	Ordinary Shares	100%
Standard Life Property Company Limited	United Kingdom	Ordinary Shares	100%
Standard Life Savings Limited	United Kingdom	Ordinary Shares	100%
Standard Life Savings Nominees Limited	United Kingdom	Ordinary Shares	100%
Standard Life Short Dated UK Government Bond Trust	United Kingdom	Unit Trust	100%
Standard Life Trustee Company Limited	United Kingdom	Ordinary Shares	100%
Standard Life UK Corporate Bond Trust	United Kingdom	Unit Trust	100%
Standard Life UK Equity General Trust	United Kingdom	Unit Trust	100%
Standard Life UK Government Bond Trust	United Kingdom	Unit Trust	100%
Standard Life Wealth (CI) Limited	Jersey	Ordinary Shares	100%
Standard Life Wealth International Limited	Jersey	Ordinary Shares	100%
Standard Life Wealth Limited	United Kingdom	Ordinary Shares	100%
Suomi Gas Distribution Holdings Oy	Finland	Ordinary Shares	45%
Suomi Gas Distribution Oy	Finland	Ordinary Shares	45%
Tarascon United SA	Bahamas	Ordinary Shares	100%
Telles Holding Sarl	Luxembourg	Ordinary Shares	60%
The Coaching Platform Limited	United Kingdom	Ordinary Shares	100%
The Heritable Securities and Mortgage Investment Association Limited	United Kingdom	Ordinary Shares	100%
The Standard Life Assurance Company 2006	United Kingdom	N/A	100%
The Standard Life Assurance Company of Europe (Nederland) BV	Netherlands	Ordinary Shares	100%
Threesixty Partnerships Limited	United Kingdom	Ordinary Shares	100%
Threesixty Services LLP	United Kingdom	Limited Liability Partnership	100%
Threesixty Support LLP	United Kingdom	Limited Liability Partnership	100%

Name of related undertaking	Country of incorporation or residence	Share class1	% interest held
Touchstone Insurance Company Limited	Guernsey	Ordinary Shares	100%
Unclaimed Asset Trust	United Kingdom	N/A	100%
Vebnet (Holdings) Limited	United Kingdom	Ordinary Shares	100%
Vebnet (Trustee) Limited	United Kingdom	Ordinary Shares	100%
Vebnet Limited	United Kingdom	Ordinary Shares	100%
Welbrent Property Investment Company Limited	United Kingdom	Ordinary Shares	100%
Whiteleys of Bayswater Limited	United Kingdom	Ordinary Shares	100%

¹    OEIC = Open-ended investment company 

     SICAV = Société d'investissement à capital variable

     ICAV = Irish collective asset-management vehicle

All subsidiaries in the table above are consolidated in the Group financial statements. Refer to Basis of consolidation for details of the consolidation assessment.

(b)     Associates

Name of related undertaking	Country of incorporation or residence	Share class1	% interest held
Argonaut Capital Partners LLP	United Kingdom	Limited Partnership	40%
Central Insurance Repository Limited	India	Equity Shares	1%
ESP CPPIB European Mid Market Fund	United Kingdom	Limited Partnership	0.5%
ESP Golden Bear Europe Fund	United Kingdom	Limited Partnership	3%
ESP II Conduit LP	United Kingdom	Limited Partnership	32%
ESP Tidal Reach LP	United Kingdom	Limited Partnership	1%
European Strategic Partners 2006 'B'	United Kingdom	Limited Partnership	10%
European Strategic Partners 2008 'B'	United Kingdom	Limited Partnership	4%
HDFC Asset Management Company Limited	India	Ordinary Shares	40%
HDFC Pension Management Company Limited	India	Equity Shares	26%
HDFC Standard Life Insurance Company Limited	India	Equity Shares	26%
PGPL2 Sp zoo	Poland	Ordinary Shares	15%
PGPL7 Sp zoo	Poland	Ordinary Shares	30%
PLC Poland 1 Sp zoo	Poland	Ordinary Shares	30%
PLC Poland 30 Sp zoo	Poland	Ordinary Shares	30%
SL Capital ESF I LP	United Kingdom	Limited Partnership	1%
SL Capital NASF I A LP	United Kingdom	Limited Partnership	2%
SL Capital NASF I LP	United Kingdom	Limited Partnership	17%
SL Capital SOF I Feeder LP	United Kingdom	Limited Partnership	0.4%
SL Capital SOF II Feeder LP	United Kingdom	Limited Partnership	0.5%
Standard Life Equity Income Trust PLC	United Kingdom	Ordinary Shares	1%
Standard Life Investment Company:
AAA Income Fund	United Kingdom	OEIC	5%
Global Equity Income Fund	United Kingdom	OEIC	13%
Higher Income Fund	United Kingdom	OEIC	34%
UK Gilt Fund	United Kingdom	OEIC	27%
Asian Pacific Growth Fund	United Kingdom	OEIC	29%
Global Smaller Companies Fund	United Kingdom	OEIC	9%
Corporate Bond Fund	United Kingdom	OEIC	35%
Europe ex-UK Smaller Companies Fund	United Kingdom	OEIC	13%
UK Ethical Fund	United Kingdom	OEIC	13%
UK Smaller Companies Fund	United Kingdom	OEIC	33%
Global Emerging Markets Equity Unconstrained Fund	United Kingdom	OEIC	<0.01%

Name of related undertaking	Country of incorporation or residence	Share class1	% interest held
Standard Life Investment Company II:
Standard Life Investments Global Index Linked Bond Fund	United Kingdom	OEIC	12%
Standard Life Investments UK Equity Income Unconstrained Fund	United Kingdom	OEIC	30%
Standard Life Investments UK Equity Unconstrained Fund	United Kingdom	OEIC	26%
Standard Life Investments Emerging Markets Debt Unconstrained Fund	United Kingdom	OEIC	21%
Standard Life Investments Emerging Market Debt Unconstrained Fund	United Kingdom	OEIC	<0.01%
Standard Life Investments European Property Growth Fund L.P.	United Kingdom	Limited Partnership	7%
Standard Life Investments Global Selector Fund	United Kingdom	OEIC	<0.01%
Standard Life Investments Global SICAV:
European Corporate Bond	Luxembourg	SICAV	30%
European High Yield Bond	Luxembourg	SICAV	31%
European Corp Bond SRI Fund	Luxembourg	SICAV	30%
Global Absolute Return Strategies	Luxembourg	SICAV	23%
Emerging Market Debt	Luxembourg	SICAV	31%
Global Equities Unconstrained	Luxembourg	SICAV	17%
American Equity Unconstrained	Luxembourg	SICAV	0.01%
Global Emerging Markets Equity Fund	Luxembourg	SICAV	0.03%
Japanese Equity High Alpha Fund	Luxembourg	SICAV	0.13%
European Corporate Bond Sustainable and Responsible Investment Fund	Luxembourg	SICAV	<0.01%
Standard Life Investments ICVC plc:
Global Real Estate Feeder Fund	Ireland	OEIC	0.05%
Standard Life Investments Ignis Real Estate Funds ICVC:
Standard Life Investments Ignis UK Property Fund	United Kingdom	OEIC	6%
Standard Life Investments Ignis Real Estate Trust:
Standard Life Investments Ignis UK Property Feeder Fund	United Kingdom	Unit Trust	4%
Standard Life Investments Liquidity Fund plc:
Sterling Liquidity Fund	Ireland	OEIC	0.08%
Standard Life Investment Property Income Trust Limited	Guernsey	Ordinary Shares	9%
Standard Life Investments UK Property Income Feeder Fund	United Kingdom	Unit Trust	8%
Standard Life Investments UK Shopping Centre Feeder Fund Limited Partnership	United Kingdom	Limited Partnership	<0.01%
Standard Life Strategic Investment Allocation Fund	United Kingdom	Unit Trust	<0.01%
Standard Life UK Smaller Companies Trust plc	United Kingdom	Ordinary Shares	6%
Tenet Group Limited	United Kingdom	Ordinary B Shares	25%

¹    OEIC = Open-ended investment company 

     SICAV = Société d'investissement à capital variable

     ICAV = Irish collective asset-management vehicle

(c)     Joint ventures

Name of related undertaking	Country of incorporation or residence	Share class	% interest held
Heng An Standard Life Insurance Company Limited	China	Equity Shares	50%

(d)     Significant holdings

The Group has no significant holdings in entities other than subsidiaries, associates and joint ventures.

 

END

 

 

FR XVLLFQLFFBBX