Capco is inviting the largest banks and financial service providers in Germany and Austria, who are active in the creation and distribution of retail banking products, to provide their appraisals and experiences with POG in the Capco Product Oversight and Governance Survey 2016.
In the Regulatory Monitoring Newsletters published July 2015 and February 2016 and in the Capco Blog, Capco has discussed the European Banking Authority’s (EBA) new ‘Guidelines on product oversight and governance for retail banking products’ (POG). These guidelines may have a significant impact on financial institutions, and Capco would like your help to gain insight into how POG may affect the industry.
Until the 31st of May 2016, Capco is inviting the largest banks and financial service providers in Germany and Austria, who are active in the creation and distribution of retail banking products, to provide their appraisals and experiences with POG in the Capco Product Oversight and Governance Survey 2016.
Regulation of financial markets and resulting new challenges for all market participants are increasing. Violations of existing rules might be prosecuted severely. A significantly enhanced regulatory framework is shaping consumer protection. On 15 July 2015, with the publication of ‘Guidelines on product oversight and governance arrangements for retail banking products’, the EBA made a further step towards comprehensive consumer protection of retail banking customers. All companies concerned must implement the new guidelines’ requirements, initially for new and significantly modified products, by 03 January 2017.
POG may have major implications for your institution. It targets manufacturers and distributors of retail banking products (for example: mortgages, consumer loans, deposits, payment accounts and payment services as well as EC and credit cards). Besides monitoring the product life cycle, manufacturer (financial institutions) also have to ensure appropriate target market definitions in line with an individual, product-specific definition of the customer target group, which have to be prescribed to distributors to ensure POC-compliant sales processes. Among others, the distributor has the obligation to ensure that its customers are part of the predefined product-specific target market. This will lead to adjustments of current strategies related to products, markets and customers.
The goal of the survey is to create an overview of product manufacturers’ and distributers’ current understanding pertaining to POG. The survey is designed to obtain first insights of ongoing and scheduled activities within the financial sector. In addition to generating an overview of the needs to improve internal rules, bodies and processes, the survey aims to identify how internal IT processes and applications must change to comply with POG.We are confident that your contribution to this survey will provide you with applicable approaches and further insights about how to deal with challenges of POG (i.e., definition of customer value, product design and monitoring). After Capco evaluates the survey results, all participants in the study will receive a summary of the survey findings in June 2016. Additionally, your institution will gain access to the latest knowledge and approaches to POG implementation in practice and links to other current regulations.
For further information and in-depth discussion of the topic, please do not hesitate to contact:
Rolf Enders: +49 172 1315182 / firstname.lastname@example.org
Thomas T Meyer: +49 172 6560055 / email@example.com
Thank you very much in advance for your interest and contribution.