In PROD we trust: Why it's not too late for firms to act on new product governance regime

Understanding of rules is low, but time is of the essence

In February, the Financial Conduct Authority published a report concluding there was significant scope for asset managers to improve their product governance arrangements.

Having examined how a sample of asset management firms, as product providers (manufacturers), took into account the product governance rules in its Product Intervention and Product Governance sourcebook (PROD), the report found that several asset managers were not fully complying with the regime. The sentiment behind the product governance rules from the FCA - that both the manufacturer and distributor are responsible for who buys the investment - is well-founded. Thou shall not pass: Who governs the gatekeepers? There is an obligation on the side of the manufacturer to understand ...