11 November 2020
Communiqué

Publication of the second EBA Report on the application of the Guidelines on Product Oversight and Governance (POG) arrangements

The CSSF would like to draw the attention of the public to the publication of the second EBA Report on the application of the Guidelines on Product Oversight and Governance (POG) arrangements (the “Report”).

The Report highlights findings from the EBA’s second assessment of the way in which financial institutions have applied the EBA Guidelines on Product Oversight and Governance (POG) arrangements (EBA/GL/2015/18, the “POG Guidelines”) and includes a number of good practice examples.

The Report concludes that many financial institutions do not sufficiently put the required focus on ensuring that consumers’ needs are met in line with the POG Guidelines. Therefore, the EBA as well as the CSSF encourage financial institutions to ensure that the interests, objectives and characteristics of consumers are taken into account when applying POG arrangements, in order to avoid consumer detriment.

The CSSF expects all entities subject to the supervision of the CSSF and which act as manufacturers of retail banking products to consider the good practices identified by the EBA in the Report and, where applicable, to improve their application of the POG Guidelines accordingly.

Please find below a link to the EBA webpage related to the Report:

https://eba.europa.eu/eba-encourages-financial-institutions-put-required-focus-consumers’-interests-when-applying-product