1 2This chapter does not affect the application of other requirements in the FCA Handbook or onshored regulations3 applying to firms within the scope of this chapter. Firms within the scope of PROD 1.3 (Application of PROD 3), PROD 1.4 (Application of PROD 4), PROD 3 (Product governance: MiFID) and PROD 4 (Product governance: IDD) must continue to comply with those provisions.
A firm to which the record-keeping rules in SYSC 3 (Systems and controls) or SYSC 9 (Record-keeping) apply should maintain, in relation to its manufacture of pathway investments, a record of the process undertaken to approve each pathway investment, and of the review conducted for each pathway investment to comply with PROD 6.2.1R.
the price and complexity of the pathway investment; and
A becomes aware of a pattern of retail clients choosing to stay with A and not transferring to B; and
A considers that this choice is unlikely to be in the interests of those retail clients, having regard to their objectives and characteristics; then
A must promptly inform B of its concerns in (1) and (2); and
A and B must each take reasonable steps to minimise the potential harm to retail clients.