Contract design factors

Discussion in 'SA2' started by claire3000006, Apr 12, 2012.

  1. claire3000006

    claire3000006 Member

    In what way is admissibility of assets a contract design factor? Is it just that you would want to invest in matching assets, and if those assets are inadmissible then the design is less desirable?
     
  2. Mark Willder

    Mark Willder ActEd Tutor Staff Member

    Yes, exactly right.

    For example, we may decide not to launch a new variable annuity contract if it could only be matched using inadmissible derivatives.

    Best wishes

    Mark
     

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