UK Financial Conduct Authority consults on a new product information framework for consumer composite investments

The U.K. Financial Conduct Authority has published a consultation on a new product information framework for Consumer Composite Investments. The regime will apply in respect of a CCI which is or may be distributed to a retail investor in the U.K. and seeks to help consumers understand the products they are buying while giving firms flexibility to innovate. The proposals aim to simplify existing requirements, enable better digital communications, and ensure consistency and comparability across the market. The new regime aligns with the Consumer Duty, prioritizing good consumer outcomes. Through the new regime, the FCA wants consumers to: (i) be presented with information that is accurate, understandable, and broadly comparable; (ii) engage with product information and use it in their decision-making process; and (iii) be able to compare investments more effectively and find the best product for their needs more easily. The deadline for comments is March 20, 2025. The FCA plans to publish a further consultation with draft rules for consequential amendments and transitional provisions in early 2025. The FCA also plans to issue a policy statement and final rules in 2025.

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