UK Finance has published guidance for firms on product governance and retail costs and charges under MiFID 2.

The guidelines on product governance look at the “target market” criteria, which include recommendations on information exchange between manufacturers and distributors. UK Finance notes that MiFID 2 will have the effect of creating industry-wide renegotiations and has developed a standard set of responsibilities it hopes firms will find useful in what it describes as a “colossal re-negotiation and repapering exercise”.

The guidelines on costs and charges take the form of FAQs to help firms understand some key terms and consider how to present required information.

UK Finance stresses the guidance has not received any formal regulatory approval.