The FCA has published a direction on a modification by consent relating to the projections rules in Annex 2 to chapter 13 of the Conduct of Business sourcebook (COBS 13) along with a webpage which provides further advice.
The modification will enable firms that are required to provide standardised deterministic projections in accordance with COBS 13 to take account of any contractual obligations owed to the policyholder (such as, capital protections or set rates of investments return).
The modification by consent is valid until 31 December 2016 unless withdrawn before that date. Firms wishing to take advantage of it should write to or e-mail the FCA’s Central Waivers Team. The FCA will then write to the firm to confirm that the modification has been granted and will publish each modification direction granted on its website.
The new projection rates for non-MiFID packaged products came into force on 6 April 2014.
View FCA Direction, 8 April 2014
View Modification by consent of COBS 13 – Annex 2, 8 April 2014