PROD 1.1 Application and purpose
Purpose
1The purpose of PROD is to improve firms’ product oversight and governance processes and to set out the FCA’s statement of policy on making temporary product intervention rules.
Product oversight and governance refers to the systems and controls firms have in place to design, approve, market and manage products throughout the products’ lifecycle to ensure they meet legal and regulatory requirements.
Good product governance should result in products that:
- (1)
meet the needs of one or more identifiable target markets;
- (2)
are sold to clients in the target markets by appropriate distribution channels; and
- (3)
deliver appropriate client outcomes.