PROD 2.7 Contextual considerations for product intervention rules

When the FCA is considering whether to make temporary or permanent product intervention rules in response to an identified issue with a product, the following factors may be taken into account:

1. (1)

   The potential scale of detriment in the market. Issues involving products with a large or potentially large client base are more likely to require product intervention.

2. (2)

   The potential scale of detriment to individual clients. Issues that may lead to high detriment for individual clients are more likely to require product intervention.

3. (3)

   The social context. Issues that may lead to detriment for particular groups of clients (such as, in particular, vulnerable client groups) are more likely to require product intervention.

4. (4)

   The market context. Market mechanisms such as information disclosure and competition do not always work to protect consumers.

5. (5)

   Possible unintended consequences. Whether the use of product intervention rules or the timing of the intervention would in itself create undue risk of further consumer detriment, including harm to existing clients and in the market (although this will not necessarily comprise a full cost benefit analysis).