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.