142. In their stress testing, institutions should assess the relevance and significance of the …

In their stress testing, institutions should assess the relevance and significance of the following exposures to conduct-related risk and associated litigation costs:

• a) the mis-selling of products, in both the retail and the wholesale markets;
• b) the pushed cross-selling of products to retail customers, such as packaged bank accounts or add-on products that customers do not need;
• c) conflicts of interest in conducting business;
• d) the manipulation of benchmark interest rates, foreign exchange rates or any other financial instruments or indices to enhance an institution’s profits;
• e) unfair barriers to switching financial products during their lifetime and/or to switching financial service providers;
• f) poorly designed distribution channels that may result in conflicts of interest with false incentives;
• g) unfair automatic renewals of products or exit penalties; and
• h) the unfair processing of customer complaints.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/