On Dec. 27, RUS CB issued financial product management principles.
RUS CB issued recommendations on the principles of financial product management.
Principles Overview
RUS CB recommended when developing new products, firms should proceed from an analysis of customer needs and possible risks, and inform consumers about these.
It is also proposed that financial firms should monitor the quality of sales and people's satisfaction with these products at all stages of their life cycle, to assess its suitability.
This will allow the development of financial products needed by and understandable to the client, so they can make informed choices, focused on need, financial capabilities.
This approach will help protect citizens and increase confidence in the financial market.
Financial institutions are advised to ensure timely disclosure of necessary and material financial information for the consumer product information about the financial product.
They should also bring to the attention of their employee to the product information, so that they all understand the nature and characteristics of the proposed product(s).
Application of RUS CB recommendations will help develop culture and responsibility of financial organizations and minimize sale of financial products without customer value.
To assist, RUS CB has produced guidance for firms to use to assess various products, as well as providing detailed information in the various appendices within guidance.
Implementation Requirements
Financial institutions are advised to inform RUS CB on the status of implementation of the principles in its activities in the form in Appendix 5, by no later than end Q3, 2024.
