Home FCA Handbook PROD PROD 6 PROD 6.5 Distribution of default options
You are viewing PROD 6.5 Distribution of default options as of . PROD 6.5 Distribution of default options was last updated on 01/12/2023.

PROD 6.5 Distribution of default options

01/12/2023R

A firm must not distribute a default option unless it is compatible with the needs, characteristics and objectives of the retail clients to whom the firm distributes the default option.

01/12/2023R

When carrying out the compatibility assessment in PROD 6.5.1R, a firm must also take into account:

  1. (1)

    the manufacturer’s compliance with the requirements in PROD 6.4; and

  2. (2)

    the financial strength of the manufacturer.

01/12/2023R

A firm must review the distribution arrangements for the default options it distributes at least every 3 years.