The European Securities and Markets Authority (ESMA) has published an opinion on certain aspects linked to the manufacturing and distribution of structured retail products.
ESMA considers that, when supervising firms that manufacture or distribute a structured retail product, competent authorities should promote, in their supervisory approaches, the examples of good practices which is set out in the opinion’s annex.
Whilst the good practices focus on structured products sold to retail investors, ESMA considers that they may also be a relevant reference for other types of financial instrument (such as asset backed securities, or contingent convertible bonds), as well as when financial instruments are being sold to professional clients.
View ESMA opinion on structured retail products – good practices for product governance arrangements, 27 March 2014