Financial Product Development and Governance Audit Checklist

A comprehensive checklist for auditing financial product development and governance processes, covering aspects such as product design, risk assessment, regulatory compliance, customer suitability, and performance monitoring to ensure responsible and effective product management.

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About This Checklist

In the rapidly evolving financial services landscape, effective product development and governance are crucial for innovation, compliance, and customer satisfaction. This Financial Product Development and Governance Audit Checklist is an indispensable tool for ensuring that new financial products are developed, launched, and managed responsibly. By systematically evaluating product design processes, risk assessments, regulatory compliance, customer suitability, and ongoing performance monitoring, this checklist helps financial institutions identify potential issues, enhance product quality, and mitigate risks associated with new offerings. Regular implementation of this checklist not only safeguards against regulatory scrutiny but also contributes to sustainable growth and customer trust in an increasingly competitive financial marketplace.

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Industry

Financial Services

Standard

MiFID II - Markets in Financial Instruments Directive

Workspaces

Bank branches

Occupations

Product Manager
Compliance Officer
Risk Management Specialist
Internal Auditor
Customer Experience Analyst
1
Is the financial product compliant with MiFID II Product Governance requirements?
2
What is the customer suitability score for the financial product?
Min1
Target7
Max10
3
Is there adequate documentation for the product development process?
4
What is the risk level associated with this financial product?
5
When was the last performance review conducted for this product?
6
What were the key findings from the last performance review?
7
What is the current status of the action plan derived from the last review?
8
What percentage of performance improvement has been observed since the last review?
Min0
Target10
Max100
9
What innovative features does the financial product offer?
10
How would you rate customer feedback on the innovative features?
11
What is the total investment made in product innovation?
Min0
Target500000
Max10000000
12
When was the last update made to the innovation strategy?
13
Is there documentation for each stage of the product lifecycle?
14
What is the current status of the product in its lifecycle?
15
What is the average duration of the product lifecycle in months?
Min1
Target24
Max120
16
What challenges have been faced during the product lifecycle?
17
What methodology is used for assessing the risks associated with the financial product?
18
How many risks have been identified for this financial product?
Min0
Target5
Max100
19
When was the last risk assessment conducted for this product?
20
What mitigation strategies are in place for the identified risks?

FAQs

These audits should be conducted at key stages of the product lifecycle, including pre-launch, post-launch review (typically 6-12 months after introduction), and periodically thereafter, usually annually.

Key areas include product design and approval processes, risk assessments, regulatory compliance checks, customer suitability analysis, pricing strategies, marketing and disclosure practices, and ongoing performance monitoring mechanisms.

These audits are typically conducted by a cross-functional team including product managers, compliance officers, risk management specialists, and internal auditors, sometimes with input from external consultants for specialized products.

The checklist includes items that assess the alignment of product features with target customer needs, the clarity of product disclosures, and the effectiveness of customer suitability assessments, helping to ensure products are appropriate for their intended audience.

Yes, the checklist can be customized to address specific requirements of various financial products, such as investment funds, insurance policies, or lending products, while maintaining core governance and development audit elements.

Benefits of Financial Product Development and Governance Audit Checklist

Ensures compliance with product governance regulations and internal policies

Identifies potential risks and issues in product design and implementation

Enhances product suitability and alignment with target customer needs

Improves transparency and fairness in product features and pricing

Strengthens overall product lifecycle management and performance monitoring