Product Governance
Definition
The regulatory framework requiring manufacturers and distributors of financial products to implement processes for product design, approval, monitoring, and review. Product governance rules mandate the identification of a target market, assessment of product suitability for that market, and ongoing monitoring to ensure the product continues to meet the target market's needs.
Regulatory Context
Product governance requirements exist under MiFID II, IDD, and the FCA's Consumer Duty. They represent a shift from point-of-sale regulation to whole-lifecycle oversight, requiring firms to consider customer outcomes from product conception through to post-sale monitoring.