COBS 13.4 Contents of a key features illustration

1 A key features illustration must include appropriate charges information and, if it is a packaged product which is not a financial instrument:

1. (1)

   must include a standardised deterministic projection;

2. (2)

   the projection and charges information must be consistent with each other ;

3. (3)

   it may also include alternative projections except that the most prominent projection must be a standardised deterministic projection.

A key features illustration must not include a generic projection unless:

1. (1)

   there are reasonable grounds for believing that that projection will be sufficient to enable a retail client to make an informed decision about whether to invest; or

2. (2)

   it is a direct offer financial promotion.

There is no requirement to include a projection in a key features illustration:

1. (1)

   for a single premium life policy bought as a pure investment product, a product with benefits that do not depend on future investment returns or any other product if it is reasonable to believe that a retail client will not need one to be able to make an informed decision about whether to invest; or

2. (2)

   if the product is:

   1. (a)

      a SIPP from which no income withdrawals are being taken; or

      4
   2. (b)

      a life policy that will be held in a CTF or sold with basic advice (unless the policy is a stakeholder pension scheme).