UK plots post-PRIIPs policy

The Government and Financial Conduct Authority plan to put in place the UK’s new retail disclosure regime by summer 2025.

According to a joint statement:

• HM Treasury will lay legislation to introduce a new framework for Consumer Composite Investments as soon as possible
• The FCA will consult on proposed rules for the CCI regime this autumn

The Government and FCA aim for the new CCI framework to be more proportionate than the current rules for packaged retail and insurance-based investment products (PRIIPs).

As an interim measure, the Government also intends to exempt close-ended UK-listed investment trusts from the current UK PRIIPs Regulation. However, these funds will be included in the scope of the replacement CCI regime because it will cater for a wider variety of products and investment vehicles.

In a related statement, the FCA says that - pending the exemption taking effect - it will not take supervisory or enforcement action if an investment trust chooses not to follow the requirements of the PRIIPs Regulation and certain related rules. Despite this regulatory forbearance, firms must still make sure that they meet other relevant rules such as the Consumer Duty and requirements to ensure that communications are fair, clear and not misleading and to act honestly, fairly and professionally in clients' best interests.