UK FCA Consumer Duty (Principle 12 and PRIN 2A)
PRIN 2A.3: the products and services outcome (manufacturer approval and review, distributor arrangements) – UK FCA Consumer Duty (Principle 12 and PRIN 2A)

UK FCA Consumer Duty (Principle 12 and PRIN 2A) 2a3-distributor-arrangements: Distributors maintain product distribution arrangements that avoid foreseeable harm, obtain adequate manufacturer information, support reviews, review the arrangements regularly and act on issues

What does 2a3-distributor-arrangements require?

A distributor must run, and keep reviewing, distribution arrangements for every product it distributes that avoid foreseeable harm (or mitigate it where avoidance is impractical), support the management of conflicts and keep in view what the target market needs, what characterises it and what it is aiming for. The arrangements must include effective measures for getting enough reliable and adequate information from the manufacturer for the distributor to understand the product, its target market and the intended distribution; a distribution strategy the distributor adds of its own must sit consistently with the manufacturer's; it must provide manufacturers with sales and review information on request; it must review the arrangements regularly to check they remain appropriate; and where it identifies an issue it must amend the arrangements and inform the manufacturer. Where the manufacturer is not subject to PRIN 2A.3 (for example an overseas manufacturer), the distributor takes all reasonable steps to comply with these rules itself.

Maintained by Gerard Blokdyk

Other controls in PRIN 2A.3: the products and services outcome (manufacturer approval and review, distributor arrangements) – UK FCA Consumer Duty (Principle 12 and PRIN 2A)

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