News CMVM identifies opportunities for improvement in the governance of financial products 07/02/2022

The CMVM (Portuguese Securities Market Commission) informed, through a Circular released on 3 February, which are the requirements in terms of product governance that can be improved by producers and distributors of financial instruments, within the scope of the current transposition of the amendments to the Markets in Financial Instruments Directive II, which will come into force in August.

It should be noted that the CMVM considers it good practice the adoption of product governance procedures by the Management Companies of Collective Investment Undertakings “namely with regard to the approval of production and the periodic review of investment funds, given the need to define of the potential target market and a distribution strategy consistent with that target market, for the purposes of communication to distributors, in order to guarantee greater investor protection.”

You can consult the Circular’s text here, or click on the link to the CMVM page.