Structured product providers must consider the needs of the retail consumer at the end of the supply chain and not just regard distributors as the ‘end customer', the FSA has said.
The FSA has criticsed structured product providers for accepting only limited responsibility for product distribution and relying wholly on distributors to identify the appropriate target market, creating an increased risk of mis-selling. Its findings, published today, follow the regulator's recent review of the structured product market. The regulator wants structured product providers to review whether distribution in practice corresponds to what was originally planned or envisaged for distributing their products, given the target market. Providers should also carry out initial ...
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