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-manufacturer-approval: Manufacturers maintain, operate and review a product approval process that fixes a granular target market, assesses needs, characteristics and objectives, and sets the distribution strategy

What does 2a3-manufacturer-approval require?

A manufacturer must run, and keep reviewing, an approval process for each product and each significant adaptation before marketing or distribution. For every product that is not closed, the procedures must pin down the target market with enough granularity, including what the customers in it need, what characterises them and what they are aiming for and of any group with characteristics of vulnerability, must ensure the product is designed to meet those needs and to avoid causing foreseeable harm, must assess the risks to the target market, and must set a distribution strategy appropriate to it. Where firms co-manufacture they must record their respective roles in a written agreement. The rules apply to new products made on or after 31 July 2023 and to existing products; firms already subject to PROD 3, 4 or 7 follow those chapters for the products in scope.

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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