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Product providers

Product Provider/ Lenders

Product providers face a number of challenges as their activities frequently cut across four key areas for FCA activity afnd scrutiny. This is the case where provider's activities encompass product design, product governance, sales and post-sale administration. Firm culture is key in ensuing the right outcomes for customers linked to sound governance, risk and compliance.

There are a significant number of regulatory challenges in the product provider arena with interlinking relationships and dependencies giving rise to a number of regulatory obligations and compliance risks.

Product Providers

Challenge: Intermediary Governance and Reputational Risk

Intermediaries, distributors and third party firms present a number of challenges and risks to product providers and lenders, especially where these firms rely on the intermediary to distribute their products or where the product requires advice. A firm’s risks arising out of the FCA’s RPPD (Responsibilities of Providers and Distributors in the Fair Treatment of Customers) is a significant challenge especially where the activities of other firms can give rise to the potential of a back book product review and customer outcome risks.

Challenge: Product governance is a key regulatory requirement

Measuring and monitoring risks throughout a product’s life cycle (from design, marketing, sales (pre and post), cancellations and complaints) allows a firm to ensure that it is monitoring the conduct risks. Considering areas such as the following all bring their challenges

  • Product and customer strategies;
  • Product governance process and structure;
  • Product review; and
  • Management information and reporting.

Challenge: Regulatory Change and knowing what is right

The volume of regulatory change and challenge has never been greater.

Our solution

Eversheds Sutherland is able to help product providers, wholesale firms and lenders with the regulatory and compliance challenges that arise out of their relationships with intermediary and wealth management firms.

Our multi-disciplined team have worked on product governance throughout the financial services industry and have delivered effective governance frameworks, systems and controls for firms across different industry sectors.

We can also provide comprehensive assistance in the following key areas that providers and lenders should be managing as part of their regulatory obligations;

  • Product or service design
  • Information to distributors
  • Intermediary Governance Frameworks and controls
  • Providing information to customers
  • Selecting distribution channels
  • Post-sale responsibility

 

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