The regulatory framework outlined in this policy document for the Introduction of new products aims to:
(i) Improve the time-to-market for financial institutions in introducing new products or implementing changes to existing products;
(ii) Promote sound risk management practices by ensuring that product risks are appropriately assessed and mitigated during the product development and marketing stages; and
(iii) Further strengthen the duty of care owed to consumers, ensuring that products developed and marketed are suitable for the needs, resources, and financial capabilities of the targeted consumer segments.
This policy document sets out the applicable regulatory procedures and the Bank’s expectations regarding the management and control of risk associated with the development, offering and marketing of new financial products and services by financial institutions. It also addresses the responsibilities of financial institutions towards consumers in ensuring that products sold or recommended are suitable, and that consumers are clearly and fully informed of the nature and risks associated with these products.
This document belongs to Bank Negara Malaysia (BNM). Full access to the original source is available here: https://www.bnm.gov.my/banking-islamic-banking
