Developments in the markets for financial services in recent years have shown that failures in the conduct of financial institutions towards their customers can, not only cause significant consumer detriment, but also undermine market confidence, financial stability and the integrity of the financial system. In order to address some of the causal drivers of conduct failure, and following the initial work carried out by the Joint Committee of the three European Supervisory Authorities (phase 1), the EBA has developed detailed product oversight and governance Guidelines for manufacturers and distributors of retail banking products that fall within the EBA’s regulatory remit, i.e. mortgages, personal loans, deposits,payment accounts, electronic money, and payment services such as credit and debit cards(phase 2).
The requirements for manufacturers cover the manufacturer’s internal control functions, identification of the target market, product testing, disclosure, product monitoring, remedial actions and distribution channels. The requirements for distributors, in turn, cover the distributor’s internal arrangements, identification and knowledge of the target market, and information requirements. The Guidelines are forward-looking in nature; they do not simply address past failings but rather provide a framework for robust and responsible product design and distribution to avoid future cases of detriment. Developing products with the consumer’s interest, objectives and characteristics in mind from the outset is a cornerstone of ensuring good consumer outcomes, and should help to re-establish and maintain confidence in retail banking.
75 Seiten p.