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Timeline guidance

COBS 13.5 Preparing product information: other projections

Projections for in-force products

COBS 13.5.1RRP

1A 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 projection2 except that the most prominent projection must be a standardised deterministic projection; and

    2

must follow the projection rules in COBS 13 Annex 2.

COBS 13.5.1AR

3The 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.

Projections: other situations

COBS 13.5.2RRP
222
  1. (1)

    5A 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-PRIIP packaged product for which a key features illustration is not required to be provided; or

      2. (ii)

        a PRIIP where the projection is not in the key information document.

COBS 13.5.2AR

3The 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.

COBS 13.5.2BG

5Where a firm communicates a projection for a packaged product that is a financial instrument,5 the following5 future performance5 requirements are likely to apply:5

  1. (1)

    5article 44(6) of the MiFID Org Regulation (see COBS 4.5A.14UK6) where the firm is carrying on MiFID, equivalent third country or optional exemption business; or

  2. (2)

    5COBS 4.6.7R where the firm is not carrying on MiFID, equivalent third country or optional exemption business.

Exceptions to the projection rules: projections for more than one product

COBS 13.5.3RRP

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 projection4 complies with the future performance requirements in either:4

  1. (1)

    4article 44(6) of the MiFID Org Regulation (see COBS 4.5A.14UK6) where the firm is carrying on MiFID, equivalent third country or optional exemption business; or

  2. (2)

    4COBS 4.6.7R where the firm is not carrying on MiFID, equivalent third country or optional exemption business.

COBS 13.5.4GRP

The general requirement that communications be fair, clear and not misleading will nevertheless mean that a firm that elects to comply with the future performance rule in COBS 4.6.7 R, or, if applicable, the requirement in article 44(6) of the MiFID Org Regulation (see COBS 4.5A.14UK6), will need to explain how the combined projection differs from other information that has been or could be provided to the client, including a projection provided under the projection rules in COBS 13.4, COBS 13.5 and COBS 13 Annex 2. In4 particular, the firm should identify where a projection in real terms is required under COBS 13.

4