ASIC has made its final update to ISC Circular No G.I.2 which prescribes gross and net tax investment returns and inflation rates for policy illustrations between 1 Jan 03 and 10 Mar 04.

The earning rates - set in consultation with the Australian Government Actuary, APRA, IAA and IFSA - will be the same as those for calendar year 2002. Except where expressly permitted, illustrations using rates other than those prescribed in Life Circular No G.1.2 are prohibited.

Life Circulars G.I.1 and G.I.2 will continue to apply until the FSR transition period ends on 10 Mar 04.

ASIC said the period for the updated illustration rates is longer than the 12-month norm because of the transition period for existing product issuers.