The FCA is seeking views on how to ensure investors get clear,
helpful information.
The standards for the information disclosed to potential
investors are included in rules known as the Packaged Retail
Investments and Insurance Products (PRIIPs) regime and the
Undertaking of Collective Investment in Transferable Securities
rules, which were created while the UK was in the EU.
The FCA will now be responsible for designing and developing new
disclosure rules which meet the needs of the UK market and
supports investors to make informed investment decisions.
This would include how much information to include about
costs and charges and level of investment risk.
Sarah Pritchard, Executive Director of Markets at the FCA said:
“The current rules make it very difficult for consumers to get
the information they need in the way they need it to help them
make effective investment decisions. We now have the
flexibility to design a new regime which is less rigid and more
focused on the outcome we are seeking – we want consumers to have
the confidence to invest and understand the levels of risk
involved.
“This discussion paper aims to seek views from industry and
consumers to help us design a disclosure regime that delivers to
support that aim, and we welcome views from across the market to
help us do so.”
The FCA is seeking views on when and in what format information
can be delivered to consumers to ensure that what is provided is
useful and supports the experience of buying a product. The
FCA is also considering who should have responsibility for
producing disclosure.
Presentation is key in order to get consumers to engage with the
information they are provided. The FCA is interested in how
information could be presented to consumers better including more
interactive disclosure and whether to introduce the practice of
layering, where firms to include some information upfront with
more detailed information provided later in the process.
The FCA has already made changes to the PRIIPs rules post-Brexit
in order to address some of the areas of harm which post the most
risk to consumers.
Firms will still be required to follow PRIIPs and UCTIS
disclosure requirements until the new regime comes into effect.
The FCA is asking for comments on the Discussion Paper by 7 March
2023.
Notes to editors
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FCA Discussion Paper
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HMT Consultation
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PRIIPs RTS changes
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PRIIPs overview
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Consumer investments
strategy
