SPIS INDUSTRY CODE
The Industry Code aims to provide guidelines and a common standard for what should be considered good industry practice, particularly with regard to the disclosure of information in the marketing material. The Industry Code deals with how information about a product shall be designed, for example regarding risks, fees, characteristics, underlying assets and its historical development, etc. The information will be designed so that it is comprehensible and accessible so as to be understood by the average retail Investor.
An arranger affiliated with SPIS should actively promote these codes of conduct. In order for the goal of the industry code to be reached, organizers, must in turn set clear requirements on their Distributors so that all relevant information is pursuant to this industry code and reaches the Investors.
Distributor which provides any of the services incumbent on the arranger shall in all respects be considered arranger. The arranger shall annually inform themselves about the Distributor’s operations and circumstances, for example by SPIS distributor questionnaire.
Pertaining to the industry code is also a glossary containing terms and definitions relating to certain structured products. The Industry code is continuously revised in line with market developments. The guidelines for the disclosure of information in the industry code is in addition to the information requirements set out by law, regulation and the Financial Supervisory Authority to the contents of prospectuses and marketing materials.
The affiliated companies’ compliance with industry code is reviewed by SPIS biannually based on a checklist containing 43 audit points. After each audit SPIS compiles reports regarding the outcome, partly on a aggregate level to industry council and also at the individual level to the individual Company.