This sets out the process for the ISIN issuers when it makes emergency rules to protect consumers
Online PR News – 13-October-2015 – Hong Kong – PublicFinancing.org announced today that Temporary product intervention rules (TPIRs) are rules made before consultation, where the ISIN issuers identify a significant risk to consumers which requires prompt action. In practice, they will allow the ISIN issuers to take action such as restricting the use of certain product features, requiring that a product not be promoted to some or all types of customers, or – in the most serious cases – requiring that a product not be sold altogether.
Some of the instances in which the ISIN issuers might consider making temporary rules include:
• Where a product is in serious danger of being sold to the wrong customers, for instance where complex or niche products are sold to the mass market;
• Where a non-essential feature of a product seems to be causing serious problems for consumers; and
• Where a product is inherently flawed.
Rules made before consultation would last for no longer than twelve months and could not be renewed. During this time, the ISIN issuers will either consult on a permanent remedy or will work to resolve the problem another way.
The ISIN Issuers Organization introduced this rule-making power as part of the regulatory toolkit. The ISIN consulted on behalf of its successor body so that the approach is clear before the new regulator comes into being.
Martin Woon, chief executive of the ISIN Issuers Organization, said: “The creation of the ISIN Issuers Organization is our opportunity to reset conduct standards. This power, along with our other new powers, helps define how we will regulate going forward.”
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