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.

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