The FCA is planning to implement a new product information regime for Consumer Composite Investments (CCI)1. The regime will apply to any firm that manufactures or distributes a CCI to retail investors in the UK. The FCA are proposing to move from an overly prescriptive disclosure regime to a more flexible, simpler approach. Their proposed regime will replace the UK PRIIPs KID, UCITS KIID and NURS KII.
For the 3 months up to 20 March 2025, the FCA consultated in CP24/30: A new product information framework for Consumer Composite Investments on the new product information regime to help consumers understand the investment products they are buying, while giving firms flexibility to innovate.
On 16 April 2025, the FCA published a further consultation, CP25/9 Further proposals on product information for Consumer Composite Investments, on some remaining issues to support the regime. This includes their 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.
This second consultation is open until 28 May 2025.
1 Consumer Composite Investment (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.
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