59 As a result of this trend, the market for new DB plans has shrunk  dramatically in recent years, largely because of concerns over  long-term liabilities.  Investment products and individual and corporate pensions are  distributed widely through independent financial advisors, tied  distribution and, more recently, partnerships with banks. Aegon  UK also maintains close relations with a number of specialist  advisors in these markets. Aegon UK is building and diversifying  its workplace distribution capability, partnering with Mercer and  Barclays in the first half of 2013. ARC is distributed through intermediated advice channels. Aegon UK faces competition from three main sources, life and  pension companies, retail investment firms, and retail platform  service companies. Many DC and “master trust” pension schemes are managed  by a third party with an insurance contract. These are typically  trust-based pensions for which the corporate customer  (an employer) requires investment solutions that are specific  to each pension scheme. These solutions typically require  a nonbranded investment portal and the provision of fund  blending to create scheme default funds. In addition, a growing  number of corporate customers want target dated lifestyle  fund solutions for their members as they approach retirement.  Aegon UK provides a low cost service that uses electronic  messaging to automate the process and minimize risk. In 2013, Aegon UK launched its first non-UK arrangement.  This offers a centrally-funded asset solution to  support a multinational providing employee benefits  in multiple countries.  Aegon UK provides a wide range of personal pensions  and associated products and services. These include: As an alternative to annuities, Aegon UK also offers "Income  for Life", a retirement solution which bridges the gap between  annuities and income drawdown products. It offers customers  a guaranteed income for life, plus continued control over their  investments until the age of 75. Aegon UK offers offshore investment bonds 1 . An offshore bond  is traditionally marketed to high-net-worth individuals. Offshore  contracts offer considerable tax advantages and a wide choice of  investment options. Aegon UK also offers GIAs and ISAs through  its platform. Aegon UK offers a range of investment products which provide  valuable guarantees for the At-Retirement market. There is an  offshore investment plan which provides a guaranteed income  for life and an offshore bond which provides capital guarantees  (offered by Aegon Ireland plc). In addition to monitoring risk exposures in compliance with  Aegon N.V.’s worldwide risk management strategies, investment  exposure to any single counterparty is limited by an internal  framework that reflects the limits set by the appropriate  regulatory regime. This applies both within asset classes  (equities, bonds and cash) and across all investments. 1 The offshore bond is offered by Aegon Ireland plc and is reported separately  in the New Markets segment, rather than as part of the UK segment. Asset liability management (ALM) is overseen by the Aegon UK  Management Investment Committee (MIC), which meets each  month to monitor capital requirements and ensure appropriate  matching of assets and liabilities. A number of Aegon UK directors and senior managers have been  approved by the FCA and/or the PRA to perform one or more  controlled functions. A regulator will only approve a candidate  whom it is satisfied is fit and proper to perform the controlled  function(s) for which they have applied.  The PRA is responsible for the prudential regulation of deposit  takers, insurers and major investment firms. The FCA is  responsible for regulating firms’ conduct in retail and wholesale  markets. It is also responsible for the prudential regulation of  those firms that do not come under the PRA’s remit.  All relevant Aegon UK companies are regulated by the Prudential  Regulation Authority (PRA) and/or the Financial Conduct  Authority (FCA).  Over the past few years, the life and pension market has been  increasingly concentrated among the largest companies and  those perceived to be financially strong. Aegon UK’s competitors  include Legal and General, Standard Life, Lloyds Bank and Aviva.  In the platform market, service companies like Cofunds, Funds  Network and Skandia are among Aegon UK's largest competitors. Regulation and supervision ■ Flexible personal pensions; ■ Self invested personal pensions; ■ Transfers from other retirement plans; ■ Phased retirement options and income drawdown. Individual pensions Investment products Asset liability management Unit-linked guarantees Investment gateway Competition Sales and distribution