Michael LewisThe FCA is consulting on ways to simplify investor disclosures relating to Consumer Composite Investments. It says nearly a quarter of UK adults hold a product which comes within the UK’s new concept of a CCI (that is, a PRIIPs, UCITS, NURS or a non-PRIIP packaged product that is not a pension product), and has already consulted on some elements of the product information regime, following the passing of legislation under the Designated Activities Regime to create the product and give the FCA necessary powers. It is now consulting on:
- calculation of transaction costs;
- changes to current cost disclosure requirements under the MiFID Org Reg;
- transitional provisions so firms can move across to the new regime as soon as they are ready; and
- consequential handbook changes.
Overall, the FCA wants to make it easier for consumers to compare products and find the best one for their needs, and so wants to bring information under one cohesive framework, underpinned by the Consumer Duty.
Consultation closes on 28 May. The FCA will feed back its response to both this paper and its previous consultation (which closed on 20 March) to which it received a lot of responses.