Regulatory Alerts2021-06-25
Order on Product Approval Procedures
The Danish Financial Supervisory Authority issued this order to implement MiFID II requirements, mandating that financial product developers and distributors establish robust product approval and governance procedures. It requires developers to define target markets, conduct scenario analyses, and manage conflicts of interest, while distributors must ensure products suit their clients' needs and maintain adequate information exchange with developers. The regulation enforces these obligations through organizational requirements, ongoing product reviews, and penalties for non-compliance, replacing the previous 2017 order.
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