Securities body issues guidance for sale of complex products

Laura Miller
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The International Organization of Securities Commissions (IOSCO) has published guidance for intermediaries who advise on complex financial products, including a report detailing nine principles on best practice.

Principle one requires advisers to adopt and apply appropriate policies and procedures to distinguish between retail and non-retail customers when distributing complex financial products. The classification of customers should be based on a reasonable assessment of the customer concerned, taking into account the complexity and riskiness of different products, the report said. Principle two states that irrespective of the classification of a customer as retail or non-retail, intermediaries should be required to act honestly, fairly and professionally and take reasonable steps to manage...

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