The FCA has today published its consultation paper (CP 24/30): A new product information framework for Consumer Composite Investments. The new regime looks to prioritise good consumer outcomes through empowering consumers to make effective, timely and properly informed decisions, and enables firms to tailor their communications to meet consumers’ needs. It should improve on the existing PRIIPs disclosure regime.
Charlotte Wightwick, Head of Conduct Regulation at the ABI, said:
“Navigating the financial world can be confusing for many consumers, so it’s vital we do more to help people better understand investing and make informed decisions.
We welcome the FCA's consultation on a new disclosure framework for Consumer Composite Investments which takes a principles-based approach and aims to put consumer understanding at the heart of product disclosure. The framework should facilitate helpful comparison of the costs, risks and performance of similar products and avoid inaccurate comparison of very different investments. It builds on the Consumer Duty, rather than duplicating it, and distributors should have more freedom to deliver product information at the point in the customer journey that is most appropriate.
Timing may be a challenge if the final rules are delayed beyond June 2025, as this would eat into the necessary implementation time. The Government should consider exempting UCITS from PRIIPs beyond 31 December 2026 if necessary.”
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