CP24/30: A new product information framework for Consumer Composite Investments

Read CP24/30[1]

Why we are consulting 

Consumers often find current product information documents confusing or overwhelming.

We want to make significant changes to the rules for the way product information is presented. Our proposals aim to move from an overly prescriptive disclosure regime to a more flexible, simpler approach.

The new regime looks to prioritise 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.

Through the Consumer Composite Investments (CCI) regime, we want consumers to:

• Be presented with information that is accurate, understandable, and broadly comparable.
• Engage with product information and use it in their decision-making process.
• Be able to compare investments more effectively, and more easily find the best product for their needs.

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.

Next steps

Online response form[2]

Please respond to the consultation paper using our online response form or by emailing [email protected] by 20 March 2025.

We will publish a further consultation with draft rules for consequential amendments and transitional provisions in early 2025.

We plan to issue a policy statement with final rules in 2025.

Background

We published DP22/6: Future Disclosure Framework[3] in 2022 as a complementary paper to the Treasury’s consultation[4] on replacing PRIIPs Regulation and the UCITS disclosure requirements.

The Treasury then published the CCI regulations[5] in 2024 to replace the requirements with a domestic regime for CCIs delivered by the FCA.