Clarifying product classifications

There is some understandable confusion regarding how certain products are classified. The FCA Handbook uses different terminology to classify different groups of products and some of the terms used are not mutually exclusive. The introduction of MiFID II and the Insurance Distribution Directive (IDD), with the accompanying product classification terms, hasn't helped. This article is intended to clarify the issues for you.

The main relevant categories of investment that come under this definition are transferable securities, money market instruments and units in collective investments as described below. Derivatives are also included.

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