Powers proposed for FCA to implement UK retail disclosure framework
The initial draft was published earlier in July, but this updated covers the 'near final version' of the rules, although the Treasury will continue to seek 'technical comments' until 10 January 2024. | Credit: iStock
Alongside Chancellor Jeremy Hunt's Autumn Statement, delivered today (22 November), the government published a statutory instrument outlining key definitions, the scope of the new framework and the provision of powers for the FCA to make and enforce the rules.
The initial draft was published earlier in July, but the updated version covers the «near final version» of the rules, although the Treasury will continue to seek «technical comments» until 10 January 2024. The full legislation will be applied in 2024, subject to parliamentary time allowing.
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The instrument has changed the concept of a PRIIP, moving away from EU language to define products in scope of the new UK framework as Consumer Composite Investments, or CCIs.
PRIIPs were originally introduced in 2018 to standardise the disclosure and providing greater transparency to retail investors for certain products.
Following the Edinburgh Reforms in 2022, and Mansion House consultations throughout the year, the government elected to replace the PRIIPs with an overarching legislative framework, with firm-facing retail disclosure requirements being replaced with rules set by the FCA.
«The new UK retail disclosure framework for CCIs will be proportionate and tailored to UK markets, balancing support for UK businesses with ensuring retail investors receive appropriate disclosure to make informed investment decisions,» the policy note said.
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