As we announced in a blog post from the end of last year, the Financial Conduct Authority (FCA) together with HM Treasury had started consultations on replacing the EU-derived Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation with a new UK-specific framework for Consumer Composite Investments (CCIs). HM Treasury plans to introduce legislation promptly to grant the FCA the necessary powers to implement this reform.
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As we announced in our blog post at the end of last year, the Financial Conduct Authority (FCA) together with HM Treasury had started consultations on replacing the EU-derived Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation with a new UK-specific framework for Consumer Composite Investments (CCIs). HM Treasury plans to introduce legislation promptly to grant the FCA the necessary powers to implement this reform.
The new CCI regime will offer more customized and flexible rules, addressing industry concerns related to current disclosure requirements, particularly around costs, with the goal to help investors better understand what they are paying for and the value they receive across the distribution chain, whilst addressing concerns raised about the current PRIIPs rules.
There are two important conclusions that can be drawn from the statement of the FCA, published on September 19, 2024:
- Timeline: The UK’s new retail disclosure regime is expected to be in place in the first half of 2025. This is subject to UK Parliament approval and the FCA’s consultation process. A draft for consultation should be available in the second half of 2024, giving us a clearer picture of the CCI rules that will replace PRIIPs regulation in the UK by the end of the year. This means that industry should have a better understanding of the CCI rules, which will replace PRIIP within UK already by the end of the year
- Temporary Exemptions: Simultaneously, the UK Government has implemented a temporary exclusion to allow listed investment trusts to opt out from the requirements of the PRIIPs regulation or certain MiFiD Org Regulation requirements until the legislation takes effect. Investment trusts will be included in the future UK retail disclosure framework under the new CCI regime. For more details, visit the FCA website.
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What This Means for You: The new CCI framework promises to provide more tailored and flexible rules, potentially making it easier to understand the costs and benefits of different investment options.
cleversoft’s regulatory watch is closely monitoring all regulatory developments. As part of our Compliance Commitment guarantee, we are happy to offer our customers continuously evolving regulatory services that take into account regulatory changes and new disclosure requirements.
For more information on our PRIIPs services, please visit our website.
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