The Financial Services Authority (FSA) is to consult on reducing its projection rates after independent research supported the move.
A study by PricewaterhouseCoopers (PwC) looked at the rates which apply to retail investment products such as personal pensions and life products. The research supported a reduction in the current 7% intermediate projection rate and in the adjustment for tax-disadvantaged products. PwC recommended the figure should be brought down to within the range of 5.25% and 6.5%, adding the 1% adjustment for tax-disadvantaged products should be reduced to 0.5%. The products for which the FSA currently produces projection rates includes endowment policies, maximum investment plans, stocks and ...
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