CP25/9: Further proposals on product information for Consumer Composite Investments

Read CP25/9 (PDF)[3]

Why we are consulting

In CP24/30[3], we put forward proposals for a new product information regime for Consumer Composite Investments (CCIs). We want to design a flexible regime that prioritises good consumer outcomes through empowering consumers to make effective, timely and properly informed decisions, and enables firms to tailor their communications to meet consumers’ needs.

As signposted in CP24/30, we’re now consulting on some remaining issues to support the regime. This includes our proposals for: 

• A revised approach to the calculation of transaction costs.
• Revisions to current cost disclosure requirements under the MiFID Org Reg.
• Transitional provisions to allow firms flexibility to move across to the new regime as soon as they’re ready.
• Consequential amendments to the FCA Handbook.

Who this is for

The regime will apply to any firm that manufactures or distributes a CCI to retail investors in the UK.

Under our proposed rules, a CCI is an investment where the returns are dependent on the performance of, or changes in, the value of indirect investments. This includes funds, structured products, insurance-based investment products, contracts for difference and other complex investments like derivatives.

This consultation will be of interest to:

• Consumers and consumer organisations.
• Those who manufacture Packaged Retail and Insurance-based Investment Products (PRIIPs), Undertakings for Collective Investment in Transferable Securities (UCITS) (including overseas funds), non-UCITS retail schemes (NURS), or non-PRIIP packaged products (excluding pensions products), including:
  • Issuers or underwriters of securities that are or may be classed as PRIIPs (including businesses that do not require Part 4A authorisation under FSMA 2000).
  • Fund managers, including overseas fund managers.
  • Issuers of structured products and derivatives.
• Those who advise on or sell PRIIPs, UCITS, NURS, or non-PRIIP packaged products, including:
  • Wealth managers, financial advisers and stockbrokers.
  • Discretionary investment management firms.
  • Life insurance companies.
  • Firms providing services in relation to insurance-based investments.
  • Firms operating retail investment platforms.
• Industry bodies that represent or provide professional services to these groups.