Risk management in investment products' design and massive selling with corporate policies of product governance
DOI:
https://doi.org/10.51302/ceflegal.2020.9587Keywords:
product governance, private banking, investment products, risk management, MiFIDAbstract
Financial entities are in continuously development of their corporate policies in order to manage and mitigate risks associated to banking activity. Banks have to address multiple risks indeed but there is a risk that stands out among others when it comes to product governance: regulatory and legal risk. Product governance is a system of oversight and control of product and services, based on the principle of self-regulation, that it must be implemented. Financial entities have to establish and make employees comply with an internal approval process of new products and also entities must monitor the whole lifecycle of any product: from its design until the massive selling to the target market.
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References
Ferran, E. et al. (2012). Crisis driven regulatory reform. En The Regulatory Aftermath of the Global Financial Crisis (pp. 1-110). Cambridge University Press.
