Common Standard for the Determination of the Target Markets for Securities
As part of the MiFID II product governance requirements, manufacturers of financial instruments have to define a target market of end clients for the products they launch. Distributors have to take account of this target market when they distribute the relevant product. The latter is only possible in the mass retail market, if the target market for all products is determined according to uniform criteria. For this reason, the German Banking Industry Committee (GBIC), together with the BVI and the Structured Securities Association (BSW; formerly DDV) have developed a common standard for the determination of the target markets for securities. Due to new regulatory requirements, the concept was supplemented with information on sustainability-related objectives and sustainability factors (so-called "ESG target market concept").
DK, BSW (formerly DDV) und BVI Minimum Standard for the identification of a target market for securities
