We have a closer look at one of the key regulatory requirements to be observed by the structured products industry once the European Retail Investment Strategy (RIS) comes into force.
Building on existing regulations (such as AIFMD, Mifid 2 and Priips), RIS seeks to improve investor protection. This initiative will preserve strong protections for individual investors, and it also aims to simplify investment procedures. Under new Value for Money (VfM) principles, investment products should only be distributed to retail clients when they can demonstrate good value. Manufacturers and distributors must be able to show that total costs and charges are reasonable. The two European