Maijoor: board intervention is strongest supervisory tool

Author: Danielle Myles | Published: 5 Jun 2014
Esma’s chair spoke about manufacturers’ obligations regarding financial product governance and oversight
Intervening at board level and removing board members involved in poor conduct and poorly designed financial products is a regulator’s most effective supervisory tool, according to the chair of the European Securities and Markets Authority (Esma).

Speaking at the European supervisory authorities’ (ESA) Consumer Protection Day on Wednesday June 4, Steven Maijoor stressed manufacturers’ continuous and permanent responsibilities to ensure their financial products meet the principles laid out in the ESAs’ joint position paper on product oversight and governance processes.

This means product intervention by regulators should be a last resort in protecting consumers.

But the financial sector – and boards, in particular – must realise that the onus of creating instruments that lead to fair outcomes and don’t cause consumer detriment falls on them.

"One of the most productive and effective measures I have seen as a...