In July 2022, ESMA published a statement announcing the findings of the CSA. The results showed that while firms do define a target market, the definition of a target market is approached as a tick box exercise and is not completed with sufficiently clearly defined terms.
Additionally, a firm’s definition of a target market does not necessarily correlate to the distribution strategy applied by firms. Developing a robust Product Assurance Framework will enhance the current product review processes in place. KPMG has designed a bespoke Product Assurance Framework to arm firms with tools and techniques to control their product set and align with the evolving and Product Governance and investor protection expectations.
For more, contact our team
