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Chapter 9 - Guidelines - Structured Deposits, Switching, Fair Dealing ,…

- - - - The board and senior management responsible, how to
        
        Devise clear strategy
        
        Align policy and practice
        
        provision of financial products : Ensure suitability, due diligence assessment, disclose conflict of interest, assess application
        
        Managing Reps
        
        Recruitment: ethical, fit & proper
        
        Supervise rep on an on-going basis
        
        performance valuation & remuneration to incentive fair dealing
        
        Managing Service quality & feedback
        
        Transparent fee structure
        
        Clear service standards like claim process
        
        whistle blower to report misconduct
        
        process & resolve claim in an independent and timely manner
        
        internal & external communication to emphaise priority
        
        Monitor Policy & strategy
        
        Monitor complain trends
        
        survey customers
        
        mystery shopping
        
        compliance review & audit
    - - product Due Diligence: 1. A financial institution Fully understand and evaluate the features and characteristics of the product, and assess the implications on each customer segment ; 2. identify customer segments for which the product is suitable, and customer segments for which the product is clearly not suitable.
      - Review point-of-sale documents: Services & charges, T&C, marketing material, prospectus, pricing statement, fact sheet, ...
    - - Before allowing a product or service to be marketed to customers, a financial institution should provide training for its representatives on the relevant features and risk-reward characteristics. I
        
        It should also clearly communicate to its representatives the customer segments that the product or service is suitable for, and to take extra care and attention with vulnerable customers.
        
        The financial institution should educate its representatives to consider how a product may or may not be suitable for a customer, given his profile and overall portfolio.
        
        The financial institution should educate its representatives to consider how a product may or may not be suitable for a customer, given his profile and overall portfolio.
        
        To underscore the importance of supervisory oversight, the financial institution should ensure that supervisors are primarily focused on performing supervisory duties and are not distracted by their own sales responsibilities.
    - - Financial Industry Disputes Resolution Centre Ltd (FIDReC).