Suite of FCA measures to boost UK investment culture published

The FCA has published a package of four papers and statements, aimed at reinforcing wholesale markets and empowering retail investors. This is the regulator’s latest move to use regulation to deliver growth, in this case by encouraging greater retail participation in investments. 

The publications include:

• A CP on revisions to the rules on client categorisation, intended to make it easier for firms to draw a distinction between customers who need the protections of retail status, and those who do not.

• Final rules replacing the PRIIPs and UCITS disclosure regimes with a more flexible regime for ‘consumer composite investments.’

• A supervisory statement on the FCA’s expectations where firms work together to manufacture products for retail customers.

• A discussion paper seeking views from industry on how regulation can support retail customers in accessing investments. 

The links above will take you to a separate post on each development. Final rules for the FCA's new targeted support regime will follow in the coming days.

Combined, these changes are intended to make it easier for retail customers to understand the investments there are offered; broaden the range of options open to more sophisticated retail investors; and dispel concerns about consumer duty requirements amongst retail product manufacturers.