Monday September 18 2017

News Source: Global Exchanges

Focus: MiFID (Global Exchanges)

Type: General




The Cyprus Securities and Exchange Commission (CySEC) has issued a reminder to inform CIFs, UCITs MC and AIFMs on their obligations regarding product governance requirements, which are provided in the Investment Services and Activities and Regulated Markets Law L. 87(I)/2017 and in other documents issued pursuant to this regulation. These requirements will enter into force on 3rd January 2018.

In order to reduce potential risks of failure with investor protection rules, investment firms manufacturing and distributing financial instruments should comply with product governance requirements. For product governance requirements, investment firms that create, develop, issue and/or design financial instruments, including when advising corporate issuers on the launch of new financial instruments should be considered as manufacturers while investment firms that offer or sell financial instruments and services to clients should be considered distributors.

The objective of product governance requirements is to enhance the level of investor protection by regulating all stages of the life-cycle of products or services in order to ensure that firms which manufacture and distribute financial instruments and structured deposits act in the clients’ best interests.

The product governance requirements address issues specific to manufacturers and distributors as well as issues common to both.

Please click on the link above for further information.