Which of the following can act as a product producer to investment intermediaries?

• A. Bank and an investment intermediary authorised for this purpose
• B. Bank only
• C. Bank and an insurance intermediary
• D. Bank and an investment intermediary authorised for this purpose

Answer: (A)

Product producers to investment intermediaries are entities that design, package, and supply investment products to be sold through intermediaries, and they must be authorized for this role. Banks are typically able to act as product producers because they have the capacity to create and package investment products and are regulated for distribution through intermediaries. An investment intermediary that is specifically authorised for this purpose can also function as a product producer, since it already operates within a regulated framework to develop and offer products. Insurance intermediaries are not automatically eligible to be product producers unless they hold the appropriate authorization. Therefore, the option that includes both a bank and an investment intermediary authorised for this purpose best matches who can act as a product producer to investment intermediaries.