4. Product oversight and governance arrangements for manufacturers

1.1 The manufacturer should establish, implement and review effective product oversight and governance arrangements. The arrangements should aim, when products are being designed and brought to the market, (i) to ensure that the interests, objectives and char-acteristics of consumers are taken into account, (ii) to avoid potential consumer detri-ment and (iii) to minimise conflicts of interest.

1.2 The product oversight and governance arrangement should be reviewed and updated by the manufacturer on a regular basis.

Guideline 2: Manufacturers’ internal control functions

Guideline 3: Target market

4.1 Before a product is brought to the market; an existing product is sold to a new target market; or significant change is made to an existing product, the manufacturer should conduct product testing, in order to be able to assess how the product would affect its consumers under a wide range of scenarios, including stressed scenarios. Manufacturers should make appropriate product changes where the scenario analysis gives rise to poor results for the target market.

5. Once the product is brought to market, the manufacturer is ultimately responsible for product monitoring and should monitor the product on an ongoing basis to ensure that the interests, objectives and characteristics of consumers continue to be appropriately taken into account.

6.1 If the manufacturer identifies a problem related to the product in the market, or when monitoring the performance of the product as required in Guideline 5.1 above, the man-ufacturer should take the necessary action to mitigate the situation and prevent a re-occurrence of detriment.

6.2 The remedial action should include promptly notifying the distributor of changes or mod-ifications to the existing products and any additional actions that need to be taken to remedy the situation.

Guideline 7: Distribution channels

8.1 Where relevant, the manufacturer should provide the distributor with a description of the main characteristics of the product; its risks and any limitations; and the total price of the product (as known, or reasonably expected to be known by the manufacturer) to be borne by the consumer, including all related fees, charges, and expenses.

8.2 The information and details of the products to be provided to distributors should be of an adequate standard, clear, precise and up to date.

8.3 The manufacturer should ensure that the information given to the distributor includes all relevant details to enable them:

• a) to understand and place the product properly on the market, and
• b) to recognise the target market for which the product is designed (see Guideline 3.1), and also to recognise market segments whose objectives, interests and characteristics are considered likely not to be met (see Guideline 3.5) .