Target Market Statements
The FCA’s PROD rules require the product manufacturer to consider a number of points when designing products such as:
- specify an identified target market;
- identify relevant risks to the target market;
- make sure the distribution strategy is appropriate for the target market; and
- take reasonable steps to make sure the product is distributed to the target market.
The PROD rules also require the product manufacturer to share information about the intended target market for their products with their distributors. Freedom, the product manufacturer, has developed ‘Target Market Statements’ for each of its products to provide this information.
Our Target Market Statements are intended to clarify who our products are designed for, who they are not intended to support and how we expect the product to be offered to customers. They are aimed at advisers offering Freedom products to their clients and should not be shared with the client.
Selling outside the target market
The target market statement is intended to be a broad description of a general customer group and you should not assume a product is suitable simply because the customer is in scope and fits the broad description. A client may benefit from the product even if they are out of scope. It is the responsibility of the advisor to identify their client’s demands and to make a suitable recommendation in response.