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

Read CP25/9 (PDF)[1]

Why we are consulting

In CP24/30[2], 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. 

Next steps

Onine response form[3]

We are asking for comments on this CP by 28 May 2025. 

You can send them to us using our online response form[3].

Or in writing to: Consumer Investments Distribution Policy, Financial Conduct Authority, 12 Endeavour Square, London E20 1JN 

You can also email: [email protected]

We plan to issue a Policy Statement with final rules in late 2025. We’ll respond to any feedback to CP24/30 and this consultation together. 

Background

CP24/30 closed on 20 March 2025, and we’re currently analysing the responses. This CP is not intended to respond to the feedback received to CP24/30. We intend to respond to feedback to this CP and to CP24/30 together in a single Policy Statement. If you wish to change your response to CP24/30 considering this consultation, you’re welcome to do so.

This is a collaborative policy process, and we will be engaging closely with stakeholder working groups to resolve the main points of feedback from CP24/30, which include aspects of costs and charges disclosure, the balance of responsibilities between manufacturers and distributors, and the best ways to achieve flexibility, innovation and enhanced consumer engagement. We want to bring manufacturers, distributors, industry bodies, consumer representatives, and other stakeholders together to design outcomes-focused regulation that is fit for many years to come.