The European Banking Authority (EBA) has published final guidelines on product oversight and governance arrangements for retail banking products which set out requirements for manufacturers and distributors when designing and bringing to market mortgages, personal loans, deposits, payment accounts, payment services and electronic money.

The guidelines are the EBA’s response to the increasing risks arising from the conduct of financial institutions in their dealing with consumers and will apply from 3 January 2017.

The guidelines consist of:

  • Requirements for manufacturers with regard to their internal control functions, identification of the target market, product testing, disclosure, product monitoring and remedial actions.
  • Requirements for distributors related to their governance, identification and knowledge of the target market and information requirements.

The final report can be read in full here.