Standards of expertise for distributors of products in the financial market
In December 2007, the Ministry of Finance (MF) issued the “Standards of Expertise for Distributors of Products in the Financial Market” for public consultation. The consultation material was the first step in implementing one of the objectives stipulated in the Framework Policy of the Ministry of Finance on Consumer Protection in the Financial Market, which is ensuring that the distributors of financial products have a certain level of knowledge and skills.
According to an analysis performed by the MF, the requirements on the expertise of the distributors contained in current legislation are markedly unbalanced. The MF considers this as problematic and plans to focus its next steps on making the conditions equal across the financial market. The objective is to find a solution that will ensure comparable conditions in terms of consumer awareness and protection in the entire market.
Expertise for the purposes of the mentioned system is understood by the MF to be the expertise necessary to distribute financial products as well as the know-how to apply the expertise in practice. In the MF’s opinion, the distributors’ knowledge and skill should be demonstrated in various areas of the financial market and economics in general, and an integral part thereof should also be knowledge of ethics principles applicable to customer relationships.
The purpose of this document is to summarise the main conclusion of this first phase of consultations and outline the MF’s next steps in securing expertise in the financial market. The MOF received a response from a total of 15 entities, mainly professional associations.
Source: MoF - Financial Market Analyses and Development Department, Consumer Protection Unit - 273: Summary of Outputs from Public Consultaion (Standards of Expertise for Distributors of Products in the Financial Market), published 11/2008, for download in Pdf format, english version