The FSA has stressed firms need to have robust controls and transparent product approval methods when developing retail structured products.
In final guidance on the development and governance of retail structured products, published today, the watchdog said several weaknesses remain in product governance arrangements, including a "lack of strategic purpose" in the manufacturing domain. At the governance level, it identified a number of weaknesses in the way firms identify target markets which could have detrimental consumer outcomes. "We found firms focused too much on their commercial position, potentially at the expense of consumer outcomes," the FSA said. It stressed firms must identify the target audience and then ...
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