(1) Where an investment firm devises or otherwise creates financial instruments for sale to clients, it shall ensure that -

(a) the financial instruments are designed to meet the needs of an identified target market of end clients within the relevant category of clients,

(b) the strategy for distribution of the financial instruments is compatible with the identified target market, and

(c) the investment firm takes reasonable steps to ensure that the financial instruments are distributed to the identified target market.

(2) An investment firm shall -

(a) understand the financial instruments it offers or recommends,

(b) assess the compatibility of the financial instruments with the needs of the clients to whom it provides investment services,

(c) take account of the identified target market of end clients as referred to in Regulation 23(1)(b) to (e), (2) and (3), and