The FCA is consulting on simplifying consumer investment disclosures.
The regulator is proposing to align cost disclosure requirements derived from the MiFID regime with the Consumer Composite Investments (CCI) regime by simplifying and consolidating requirements for MiFID, Insurance Distribution Directive (IDD) and non-MiFID investments business.
Proposed changes include:
- Aligning the pre-sale presentation of product costs under COBS with the disclosure framework for CCIs;
- Removing the MiFID-derived cumulative effect illustration pre- and post-sale, instead requiring firms to show how costs have impacted returns in regular post-sale reporting;
- Allowing firms to use CCI cost categories in regular post-sale reporting, but maintaining the requirement for consumers to be told the total costs they have paid in pounds and pence;
- Removing most prescriptive requirements for businesses with professional clients, but maintaining obligations to provide them with transparent cost disclosures and other core information;
- Embedding expectations for consumers to be clearly informed of the interest rates they will receive on their cash balances, or any fees they will pay on cash held in investment accounts; and
- Simplifying and streamlining rules for MiFID, IDD and non-MiFID investment business in order to remove confusing arising from the co-existence of three similar but distinct regimes.
The consultation closes on 21 August 2026.