As part of MiFID II, the FCA introduced the Product Intervention and Product Governance Sourcebook (PROD) rules in January 2018. Research has shown that some advisers are unaware of how the rules apply to them. There are a number of key obligations for advice firms, all of which FundsNetwork have summarised, including:
- Understanding the products you distribute to your clients
- Assessing the product’s compatibility with the needs of the client
- Ensuring a product is only distributed when this is in the best interests of the client
