Reforms to Financial Services retail-disclosure requirements

The Government and FCA announce plans to reform UK retail disclosure rules, and will temporarily exempt investment trusts from assimilated EU law requirements.

The Government and Financial Conduct Authority (FCA) are committed to the ongoing reform programme to reinvigorate the UK’s capital markets. Ensuring retail investors can make informed investment decisions is an important part of ensuring healthy capital markets. As part of this, the Government and FCA are committed to replacing EU-inherited consumer disclosure regulation with a new framework tailored to UK markets and firms.

The Treasury consulted on replacing the EU-inherited Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation with a new framework for Consumer Composite Investments (CCIs). HM Treasury will lay legislation as soon as possible to provide the FCA with the appropriate powers to deliver this reform. The new CCI regime will deliver more tailored and flexible rules which will address concerns across industry with current disclosure requirements, including for costs.

The UK’s new retail disclosure regime is expected to be in place in H1 2025, subject to Parliamentary approval and the FCA consultation process. The FCA intends to consult on proposed rules for the CCI regime this autumn.

The UK’s new framework for CCIs will support investors to better understand what they are paying for and the value they are receiving through the distribution chain. The FCA’s consultation process will provide an opportunity for a full range of stakeholders to provide feedback on the new regime, to ensure it works as intended.

The intent is that the new CCI framework will be proportionate and will allow more bespoke arrangements to address concerns that have been raised with the current PRIIPs framework.