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
Esma’s chair spoke about
manufacturers’ obligations regarding
financial product governance and oversight
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
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...