All very well Ray, but doesn't this make it more difficult for advisers and customers to make product comparisons where providers are using different growth rates?'
Well, yes - but there's a bigger picture here. We can't use the argument that we should overstate potential returns simply to make comparisons simpler. The danger is that some providers may feel that they can gain competitive advantage by being a little more ‘racy' in their assumptions for some of the asset classes. To avoid this, the industry - possibly led by the ABI / AMPS who are currently looking at issues related to SIPP charges, could provide some guidance and parameters over acceptable levels of growth to be assumed for the underlying asset classes. Failing this, the FSA rules alrea...
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