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Published date: 22 April 2022

Central Bank reviews identify issues in marketing of complex investment products

  • Retail investment market shifting towards increasingly complex products.
  • Review identified a number of poor practices and weaknesses in firms, which increase risks to investors.
  • Firms required to take specific actions to ensure investors are protected.

The Central Bank of Ireland has written to MiFID investment firms, outlining the findings from a series of targeted reviews of Structured Retail Products (SRPs). These reviews examined SRPs manufactured and distributed by investment firms in the MiFID investment sector. A number of areas were identified where further action is needed by firms to ensure their governance and oversight of SRPs keeps pace with an increasingly complex retail investment market, so that investors are appropriately protected.

The reviews found a number of poor practices and weaknesses in firms’ processes, which increase risks to investors. This includes failure by firms to consider potential difficulties investors may have in understanding the complex featur