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3.3.6 Investment Choice and Performance

  • Mainly relevant where there is an investment element for the product.

  • The relative importance depends on the client's view of risk and the particular objective in mind when selecting a product.

  • The factors in the pages on Financial Strength, Asset Valuation, Liabilities, and Solvency should be born closely in mind when considering performance.

  • The usual caveats should be kept in mind:


    1. High returns generally will mean high risk, with the reverse being true.
    2. Past performance should not be taken as a guide to future performance.
    3. Performance in the short term should not be taken as a guide to performance in the longer term

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