Under the Central Bank's Consumer Protection Code, when launching a new investment product, a product producer must provide details of which of the following to any intermediary who will promote and sell that product to consumers?

• A. Projected return over five years.
• B. Nature and extent of any risks inherent in the product.
• C. Projected return, net of charges, over five years.
• D. The name of the senior executive in the product producer's design team.

Answer: (B)

The main idea is risk disclosure to intermediaries. Under the Central Bank’s Consumer Protection Code, when a product producer launches a new investment product, it is essential to share with any intermediary who will promote and sell that product the nature and extent of the risks inherent in the product. This information helps the intermediary understand the risk profile, assess suitability for different consumers, and communicate those risks clearly to customers. It supports responsible selling by ensuring the intermediary can explain what could go wrong, how the product could perform under various market conditions, and what losses might look like, rather than focusing on potential returns or other non-risk details.

Projected returns or returns net of charges are forward-looking and can be misleading without context; they don’t provide the risk understanding needed for suitability assessments. The name of a senior executive in the design team isn’t relevant to the product’s risk or to the intermediary’s ability to assess and explain risk to consumers.