On 21 January 2013, the International Organization of Securities Commissions (IOSCO) published a final report on suitability requirements in respect of the distribution by intermediaries of complex financial products to retail and non-retail customers. The report informs national regulators and sets out nine principles that cover the following areas:

  • Classification of customers.
  • General duties irrespective of customer classification.
  • Disclosure requirements.
  • Protection of customers for non-advisory services.
  • Suitability protections for advisory services (including portfolio management).
  • Compliance function and internal suitability policies and procedures.
  • Incentives.
  • Enforcement.