Firms are required to take all reasonable steps to ensure that a client’s investments align to their investment objectives and personal circumstances. ESMA has recently launched a Common Supervisory Approach (“CSA”) on the application of MiFID II Product Governance rules, to be scheduled in 2021. Gillian Kelly and Shane Garahy of our Risk Consulting team explain.
This action will allow ESMA and the National Competent Authorities to assess the progress made by both manufacturers and distributors of financial products in the application of these Product Governance rules.
Regulatory bodies across financial services have stressed the essential role that Product Governance plays in ensuring that clients’ best interests are placed at the centre, with importance placed on early and proper implementation of guidelines. KPMG have designed a bespoke methodology to arm organisations with tools and techniques to control its product set and align with the evolving and expanding Product Governance and client protection expectations. This methodology focusses on building a comprehensive process to assure products, across the entire product lifecycle with a focus on regulatory compliance, suitability assessments and fair treatment of clients.
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If you have any queries on MiFID II, please get in touch with our Risk Consulting team below; we'd be delighted to hear from you.