Introduced in January 2018, the FCA’s Product Intervention and Product Governance Sourcebook (PROD) rules aim to make sure that the investment solutions and products being recommended to clients meet the needs of one or more identifiable target markets, are distributed appropriately and deliver good customer outcomes.
The regulator will be looking to see that you have a clear target market and, using a combination of provider material and your own client information, you can clearly define your distribution strategy.
Importantly, PROD also requires you to identify any groups of clients a product or service isn’t suitable for.
This set of rules and guidance isn’t new – they’re an evolution of the FCA’s sourcebook – and any breaches could result in enforcement action.
Here’s some simple steps to help you design your PROD process and links to the material we’ve created to support you.
To find out more about how we can help you with your target market analysis, download our product target market statements or speak to your usual Royal London sales contact.