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) Where a projection made in relation to an in-force packaged product is generated using generic assumptions – rather than being based on the information that would be required to comply with the rules in COBS 13 Annex 2 – then the rules in COBS 13.5 do not apply. Other relevant requirements in the FCA Handbook, including under PRIN 2A (The Consumer Duty) and COBS, apply to a firm when communicating such a projection. For example, firms should present such a projection with a clear statement that it has been prepared using generic assumptions that may not reflect the client’s situation.
2. (2) Where a firm communicates a projection in (1), it may signpost to:
   1. (a) a digital pensions calculator or other digital tools;
   2. (b) the availability of advice or targeted support services; and
   3. (c) sources of further information or guidance that may support the client, whether provided by the firm or by a third party such as MoneyHelper.
   4. (3) A firm should only communicate a projection in (1) where doing so is consistent with its obligations under PRIN 2A, including, in particular, the requirements in PRIN 2A.5 to support retail customers’ understanding.

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.