Recent developments in MiFID regulation about financial products’ distribution assesses the process of product governance of complex products by financial institutions. The due diligence that should be consequently fulfilled involves adequate internal controls for products and services development in order to avoid detrimental practices toward clients. One of the key points of the regulation is that institutions have to demonstrate that retail clients have sufficient financial knowledge and experience to understand the key features, benefits and risks involved in the investment proposed. Aim of this article is to shed light on the break even analysis as an appropriate practice half on the way between retail client cognitive abilities and financial institutions rules of disclosure in the case of interest rate swap products.
La valenza informativa della break even analysis nelle decisioni di investimento in prodotti derivati IRS.
GENTILE, VINCENZO
2014-01-01
Abstract
Recent developments in MiFID regulation about financial products’ distribution assesses the process of product governance of complex products by financial institutions. The due diligence that should be consequently fulfilled involves adequate internal controls for products and services development in order to avoid detrimental practices toward clients. One of the key points of the regulation is that institutions have to demonstrate that retail clients have sufficient financial knowledge and experience to understand the key features, benefits and risks involved in the investment proposed. Aim of this article is to shed light on the break even analysis as an appropriate practice half on the way between retail client cognitive abilities and financial institutions rules of disclosure in the case of interest rate swap products.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
