Reset to Today

To access the FCA Handbook Archive choose a date between 1 January 2001 and 31 December 2004.

Content Options:

Add to favourites

View Options:

More Resources:

External link Handbook Publications

You are viewing the version of the document as on 2023-09-29.

Timeline guidance

Alternative versions

  3. Point in time
    2023-09-29

PROD 3.1 General

[Note: ESMA has also issued guidelines: Guidelines on MiFID II product governance requirements, 05/02/2018, ESMA35-43-620]2

Interpretation: financial instruments and structured products

PROD 3.1.1 R

1For the purposes of PROD 3, references to financial instruments include structured deposits.

Proportionate application of rules

PROD 3.1.2 R
  1. (1)

    A firm must, when manufacturing financial instruments or deciding on the range of financial instruments and investment services it intends to distribute to clients, comply, in a way that is appropriate and proportionate, with the requirements set out in this chapter.

  2. (2)

    In complying with these requirements, a firm must take into account:

    1. (a)

      the nature of the financial instrument or investment service; and

    2. (b)

      the target market for the financial instrument.

[Note: articles 9(1) and 10(1) of the MiFID Delegated Directive]

PROD 3.1.3 G

A proportionate application of the requirements in this chapter may mean that complying with the rules could be relatively simple for simple financial instruments distributed on an execution-only transaction basis where such financial instruments would be compatible with the needs and characteristics of the mass retail market.