Bank of Italy: the importance of a product oversight and governance (POG)

The Supervisory Authority communicates to the banks and the financial intermediares the importance to have a coherent product oversight and governance.

The latest reports (2019 and 2020) of the European Banking Authority (EBA) highlights best practice and criticality in the European countries.

The monitoring activities conducted by Bank of Italy has led results close to points of attention of EBA:

• not appropriate engagement of Compliance to the process of reviewing products;
• weaknesses in the product design and limited engagement of prospects;
• incompleteness of review activities of the products;
• not well-trained staff and criticality in the IT procedures necessary to assist the distribution network in the of customer satisfaction;
• complexity of product portfolio.

The Bank of Italy want to raise awareness on potential risk of customer’s financial exclusion from same products or services related to financial or digital field.

Read or download here: 

Guidelines for intermediares about the product oversight and governance (POG)