Product governance requirements impose that providers take explicitly into account the interest of consumers when designing new products, and test them to assess if they will really serve the interests and the needs of the consumers. This evolution poses a number of challenges to supervisors dealing with financial intermediaries’ market conduct.
Pillar 3 Since the release of the Basel II framework, most of the focus has been on the first two pillars but we should not forget the third – and certainly not the least – of the three pillars. Market discipline is made possible by effective disclosure requirements and is a critical complement to the other two pillars of Basel II.