We are consulting to remove a number of disclosure requirements which we identified as not being effective in terms of informing consumers about a product or service and to reduce the regulatory burden on firms. This reflects our commitment to create a sustainable regulatory framework.
Why are we issuing this Consultation Paper?
In our Discussion Paper on Smarter Consumer Communications, we committed to improve the effectiveness of communications to consumers. We also outlined our intention to remove disclosures which have not been as effective as initially envisaged in terms of providing appropriate information to consumers. This CP delivers on this commitment.
This Consultation Paper proposes to amend rules and guidance related to the following disclosures:
- The ‘Consumer-Friendly Principles and Practices of Financial Management’ (CFPPFM)
- Short report
- The Initial Disclosure Document (IDD)/ Combined Initial Disclosure Document (CIDD)
- Combined Initial Disclosure Document (CIDD)/ Services and Costs Disclosure Document (SCDD)
Who is this consultation aimed at?
- The proposal to remove the requirement for firms to produce a CFPPFM will be of direct interest to insurance companies operating with-profits business, their customers, potential customers and firms providing advice on this business.
- The proposal to delete the requirement on firms to produce a short report will be of interest to authorised fund managers (AFMs) of UCITS schemes and non-UCITS retail schemes, and service providers such as platforms or third-party administrators.
- The proposal to delete the IDD and CIDD will be of interest to home finance and investment firms as well as general insurance firms.
- The proposal to delete the template for the SCDD will be of interest to all firms that offer advice to retail clients or arrange transactions for them in relation to packaged products.
What are the next steps?
We want to know what you think of our proposals. Please send us your comments via our online form[2] or by email to [email protected] by 18 December 2015.