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PROD guide launched to help advice firms comply with MiFID II

28 October 2019

Clever has launched a PROD Guide to help advice firms to design and deliver the most appropriate financial solutions for their clients whilst working within the regulatory framework of MiFID II.    

The Product Intervention and Product Governance (PROD) sourcebook was introduced by the FCA in January 2018 to help financial firms implement MiFID II product governance obligations.

This involves maintaining robust oversight and governance processes so that the systems financial firms have in place to design, market and manage products comply with regulatory and legal requirements.

The Clever PROD Guide covers:

An explanation of PROD, what it means and who it applies to, including product manufacturers (providers), product distributors (advisers) and platforms.

  • Clear guidelines on how to implement PROD effectively including the importance, and regulatory requirement, of documenting all stages in the advice process.
  • Information on how PROD impacts on Centralised Investment Propositions (CIPs) and the necessity of examining an adviser’s proposition to ensure risks are identified and managed.
  • Cautions about non-compliance, guidance on how to cope with ‘regulation fatigue’ and clarification on who takes responsibility.
  • What PROD means for the industry, compliance and competition and how advisers can make it work for them.

Paraplanners can download their free Clever PROD Guide by visiting https://cleveradviser.pages.salesfusion.com/PROD-guide-download

Patrick Boughton, Sales and Marketing director of Clever said: “It is vital that firms understand the need to comply fully with PROD in order to work within the regulations set out by MiFID II. That said, it’s not always straight forward and, with the best will in the world, some advisers may find that their processes fall short.

Boughton added the Clever PROD Guide has been produced to provide advice firms with support and guidance “in order to get it right”.

“By implementing PROD, advisers will ensure that they are delivering the best value service and products to their clients, something that all advisers and the wider industry strives for. This guide is an important port of call for advisers who are keen to embrace PROD but perhaps need a guiding hand when it comes to putting all the robust processes in place.”

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