COBS 13.5 Preparing product information: other projections

A firm that communicates a projection for an in-force packaged product which is not a financial instrument:

1. (1)

   must include a standardised deterministic projection;

2. (2)

   may also include a stochastic projection except that the most prominent projection must be a standardised deterministic projection; and

must follow the projection rules in COBS 13 Annex 2.

The requirement in COBS 13.5.1R does not apply where a retail client proposes to withdraw the funds in full from their personal pension scheme, stakeholder pension scheme or drawdown pension reducing the value of their rights to zero.

1. (1)

    A firm that communicates a projection for a packaged product which falls within (2) must ensure that the projection is either a standardised deterministic projection or a stochastic projection in accordance with COBS 13 Annex 2.

2. (2)

    This rule applies to a packaged product which is:

   1. (a)

       not a financial instrument or an in-force packaged product; and

   2. (b)

       either:

      1. (i)

          a non-CCI packaged product for which a key features illustration is not required to be provided; or

      2. (ii)

          a consumer composite investment where the projection is not in a product summary.

The requirement in COBS 13.5.2R does not apply where a retail client elects to withdraw the funds in full from their personal pension scheme or stakeholder pension scheme or drawdown pension reducing the value of their rights to zero.

A firm that communicates a projection of benefits for a packaged product which is not a financial instrument, as part of a combined projection where other benefits being projected include those for a financial instrument or structured deposit, is not required to comply with the projection rules in COBS 13.4, COBS 13.5 and COBS 13 Annex 2 to the extent that the combined projection complies with the future performance requirements in either:

1. (1)

   COBS 4.5A.14R where the firm is carrying on MiFID, equivalent third country or optional exemption business; or

2. (2)

   COBS 4.6.7R where the firm is not carrying on MiFID, equivalent third country or optional exemption business.