Advisers Miss the new PROD Rules – Quoted Post

Senior Managers Regime 2018, senior managers regime summary

Just 5% of advisers aware of PROD obligations – IRESS

70% unsure if they can fully comply

Mark Loosmore: “Advisers need to take notice of PROD. It is no longer guidance – it is rules based now.”

Just one-in-20 (5%) advisers are aware of their obligations under the FCA’s ‘PROD’ product governance rules, which were introduced alongside MiFID II in January, research by IRESS has suggested.

The study, undertaken by consultancy the lang cat on behalf of the technology solutions business, also revealed more than half of the 64 advisers polled were still unaware of PROD – the Financial Conduct Authority’s (FCA) term for its product governance and product intervention sourcebook.

Furthermore, the study found almost three-quarters (70%) of advisers to be unsure if they were able to evidence the suitability of product services by client segment, while one-third (33%) use back- office technology to help segment clients.

“The new rules in PROD have caught many people in the industry unaware,” said IRESS executive general manager (wealth) Mark Loosmore. “There seems to be widespread confusion and concern around the steps advisers should be taking to ensure client suitability processes are evidenced appropriately.

If you need assistance with this area of regulation, Compliance Consultant are available – just call us today on

0207 097 1434

or download our introductory brochure HERE