15 Relationships between advisers and DIMs Product Governance (PROD) Advisers and DIMs have obligations under the Product Governance (PROD) rules and those obligations continue. Firms complying with the PROD rules are likely to meet the requirements of the Products and Services outcome under the Consumer Duty as the requirements are broadly similar. The key requirements under both regimes – PROD and Consumer Duty are as follows: • Advisers must ensure they understand each product or service they are recommending and provide adequate training to relevant staff accordingly. They must also ensure that the product / service is sold only to the identified target market. The launch of a new product or service, which would include the use of a DIM, should be signed off formally at Senior Management level. An adviser firm’s product governance assessment should include how relationships are structured. • DIMs need to understand their distribution channel. They should assess and disclose the target market, and value assessment for their service propositions and make available to advisers, information about their product governance, target market and appropriate distribution channels for their products and services. • Appropriate agreements setting out clearly how the arrangements are structured, and who is responsible for what, also need to be in place. Chapter one - Relationships between advisers and DIMs
RkJQdWJsaXNoZXIy NjM2Njg1