As part of the MiFID II product governance requirements, manufacturers of financial instruments have to define a target market of end clients for the products they launch. Distributors have to take account of this target market when they distribute the relevant product.
The latter is only possible in the mass retail market, if the target market for all products is determined according to uniform criteria.
For this reason, the German Banking Industry Committee (GBIC), together with the German Investment Funds Association (BVI) and the German Derivatives Association (DDV) have developed a common standard for the determination of the target markets for securities. The common standard is almost universally used in the German market.