On 19 September 2024, the UK Government and the FCA announced their plans to replace the EU-inherited consumer cost disclosure regulations with a new framework tailored to the UK market, with a primary objective of ensuring that UK retail investors can make informed investment decisions. 

One of the intended reform plans is to replace the EU-inherited Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation with a new regime for Consumer Composite Investments (CCIs). The new regulation is expected to deliver more tailored and flexible rules designed to address industry concerns with current disclosure requirements. 

Whilst its consultation on the new CCI regime will begin this autumn, the FCA have put in place immediate interim measures allowing certain investment trusts to be temporarily exempt from the current PRIIPs regulation, which they say should provide some level of certainty for firms ahead of the new regime taking effect in the first half of 2025, subject to Parliamentary approval and the FCA consultation process. 

This is an interesting development in the financial services sector and one that needs a close eye keeping on it to see whether such reform will indeed provide better support to investors than antecedent legislation. We will be following the consultation and providing further updates.

https://www.fca.org.uk/news/statements/reforms-financial-services-retail-disclosure-requirements