LV= backs FSA push to keep projected product growth rates 'realistic'

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LV= says it welcomes further FSA moves to press providers into using realistic growth projections for retirement products.

Customer outcomes can be "significantly" overstated when standard, not realistic, growth rates are used in projections, the insurer says its own data suggests. The FSA this week sent a letter to all compliance officers citing concern over the reliance on a caveat to suggest growth rates may overstate the potential benefits. The FSA letter says: "Many firms appeared to seek an actuarial opinion on the general appropriateness of the standard rates, rather than taking a bottom-up approach to determine if the actual asset mix of the fund or product justifies these rates. "Firms rarely ...

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