SIFA 9.14 Projections
Why do you need to follow these rules?
To avoid committing an offence under section 397 of the Act (Misleading statements and practices) you should ensure that all forecasts of future values of investments are not misleading, false or deceptive. In respect of packaged products COB 6.6 amplifies Principle 7 which requires a firm to pay due regard to the information needs of its clients and communicate information to them in a way that is clear, fair and not misleading. A projection needs to be carried out on a basis of consistent rates of investment return so that firms do not seek to compete on the basis of wholly speculative forecasts as to the potential value of future benefits from an investment.