Failure to comply with regulations or obligations related to the distribution and product development of financial products may result in regulatory actions. The regulator may issue a warning and give you the opportunity to submit an improvement plan. If this proves insufficient, they may provide the financial service provider with specific instructions, which will be visible in the regulator’s register. Additionally, the regulator has the authority to impose fines. 

To avoid penalties, promptly ensure compliance with laws and regulations regarding the distribution of your products (including IDD) and product development (PARP). Maximum fines can amount to up to 10% of your turnover, as determined at the European level (EU directive). These penalties are comparable to those imposed for violations of privacy legislation. It’s important to note that these distribution rules also apply to advisors.