FCA Operator Practice Exam 2025 - Free FCA Operator Practice Questions and Guide

Product governance under FCA rules refers to the comprehensive framework and practices that institutions must follow to ensure that financial products are designed and managed with a focus on meeting the actual needs of consumers. This involves considering factors such as the target market, the purpose of the product, and how it can benefit consumers effectively.

The essence of product governance is to promote accountability, transparency, and customer-centric practices throughout the product lifecycle, from conception through to post-sale activities. Organizations are required to conduct adequate testing, evaluation, and monitoring to ensure that their products provide real value to consumers without causing harm.

The context surrounding this concept is significant; it includes not only the design and management processes but also regulatory expectations to prevent mis-selling and ensure that suitable products are offered to the right customers. Fulfilling these governance responsibilities is essential for building trust and maintaining compliance within the financial industry.