The International Organization of Securities Commissions (IOSCO) has published its final report on the regulation of retail structured products (FR14/13). The report sets out a toolkit outlining regulatory options that securities regulators may find useful in their regulation of retail structured products. These proposed tools offer flexibility in terms of application and adaptation.
The toolkit covers the potential regulation of:
- the design and issuance of retail structured products. Specifically, the tools concern investor identification, the use of modelling in the product development and disclosure processes, and product approval processes;
- the disclosure and marketing of retail structured products. This includes suggested approaches to disclosures of the features, risks and costs of structured products to retail investors;
- the distribution of retail structured products. IOSCO’s January 2013 report on suitability requirements for the distribution of complex financial products should be considered here; and
- post-sale practices. The toolkit examines what post-sale responsibilities issuers and distributors could have to investors.
View Regulation of retail structured products – final report, 20 December 2013
View IOSCO publishes report on regulation of retail structured products, 20 December 2013