Consultation Paper: Derivatives Issuer Standard Condition on Suitability

First published 8 September 2014

In November 2013 the Financial Markets Authority consulted on the minimum standards and conditions for derivatives issuers wishing to be licensed under the Financial Markets Conduct Act 2013 (the Act).

As part of that consultation we sought responses on a condition relating to the assessment of suitability of products for clients. Two options were provided, one being disclosure based and the other an assessment by the issuer.

Submitters noted this standard should focus on assessing suitability for retail investors. They noted the potential for overlap with other regulatory requirements and sought greater clarification on what the requirement would be.

Update

14 April 2015

We have reviewed this feedback and updated the standard conditions.  The new standard condition (no.12) comes into effect on 1 December 2015.