These good practices that product providers could put in place to improve their ability to deliver on investor protection in particular focus on:<\/p>\n
\u2022 the complexity of the structured retail products they manufacture and distribute;
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\u2022 the nature and range of investment services and activities undertaken in the course of business; and
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\u2022 the type of investors they target.
\nESMA expects national competent authorities to embed these good practices in their supervisory approaches to structured retail product providers.<\/p>\n
Steven Maijoor, ESMA chair, said: \u201cThe good practices published today provide a roadmap for both firms and national competent authorities on the practices they should embed, as manufacturers, distributors and supervisors, to ensure the existence of sound product governance arrangements and consistent supervisory practices needed for adequate investor protection across the European Union.\u201d<\/em> <\/p>\n Structured Retail Products \u2013 Good practices for product governance arrangements<\/strong><\/p>\n ESMA considers these good practices will bridge the gap until the MiFID II product governance requirements are further developed and in place. The good practices cover the following areas:<\/p>\n \u2022 general organisation of product governance arrangements; Although the good practices focus on structured products designed for retail customers, they may also be a relevant reference for other types of financial instruments such as asset-backed securities, or contingent convertible bonds, as well as when financial instruments are being sold to professional clients.<\/p>\n","protected":false},"excerpt":{"rendered":" The European Securities and Markets Authority (ESMA) has published an opinion on structured retail products, setting out good practices for firms when manufacturing and distributing these products.<\/p>\n","protected":false},"author":20,"featured_media":33690,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1508],"tags":[1655,1673,1675,1674,1651,1437,1837,1865,1970],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/33692"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=33692"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/33692\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/33690"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=33692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=33692"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=33692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\u2022 product design;
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\u2022 product testing;
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\u2022 target market;
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\u2022 distributing strategy;
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\u2022 value at the date of issuance and transparency of costs;
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\u2022 secondary market and redemption; and
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\u2022 review process.<\/p>\n