The UK Government and the Financial Conduct Authority (FCA )
are working to reform capital markets. They aim to help retail investors make
informed investment choices. A key aspect of this effort is replacing the
EU-inherited consumer cost disclosure regulation. The goal is to create a new
framework tailored to UK markets.
Treasury Proposes New CCI Framework
The Treasury has proposed replacing the current Packaged
Retail and Insurance-based Investment Products (PRIIPs) Regulation with a new
system called Consumer Composite Investments (CCIs).
Legislation will be
introduced to grant the FCA the necessary powers to implement this change. The
new CCI regime is designed to address industry concerns about current
disclosure requirements, especially regarding costs.
The new disclosure framework is expected to be in place by
the first half of 2025, pending Parliamentary approval and FCA consultations.
The FCA plans to consult on the proposed rules for CCIs this autumn. This
process will allow stakeholders to provide input to ensure the framework
functions effectively.
I have listened to industry concerns with the impact of EU-inherited disclosure rules for investment trusts. The government and FCA will reform the UK’s retail disclosure regime and provide interim relief for the sector.
Read the full statement here: https://t.co/JUxOIX7O86— Tulip Siddiq (@TulipSiddiq) September 19, 2024
Government Seeks Investment Trust Feedback
The CCI framework aims to help investors understand the
costs and value of their investments. The Government and FCA are also seeking
feedback from the investment trust sector on the existing cost disclosure
requirements, which may affect these investment vehicles.
Investment trusts are significant in the UK, making up over
30% of the FTSE 250 and holding assets worth more than £260 billion. Factors
such as investment performance and market sentiment can influence their
valuations.
In response to industry feedback, the Government will
legislate to exempt listed investment trusts from the current PRIIPs Regulation
and amend other relevant laws. This measure will be temporary, as investment
trusts will later fall under the new UK retail disclosure framework.
In light of these changes, the FCA will apply new
forbearance measures. From September 19, it will not take action against
investment trusts that do not comply with PRIIPs regulations until the new
legislation is enacted. This is a temporary solution while long-term reforms
are developed.
The UK Government and the Financial Conduct Authority (FCA )
are working to reform capital markets. They aim to help retail investors make
informed investment choices. A key aspect of this effort is replacing the
EU-inherited consumer cost disclosure regulation. The goal is to create a new
framework tailored to UK markets.
Treasury Proposes New CCI Framework
The Treasury has proposed replacing the current Packaged
Retail and Insurance-based Investment Products (PRIIPs) Regulation with a new
system called Consumer Composite Investments (CCIs).
Legislation will be
introduced to grant the FCA the necessary powers to implement this change. The
new CCI regime is designed to address industry concerns about current
disclosure requirements, especially regarding costs.
The new disclosure framework is expected to be in place by
the first half of 2025, pending Parliamentary approval and FCA consultations.
The FCA plans to consult on the proposed rules for CCIs this autumn. This
process will allow stakeholders to provide input to ensure the framework
functions effectively.
I have listened to industry concerns with the impact of EU-inherited disclosure rules for investment trusts. The government and FCA will reform the UK’s retail disclosure regime and provide interim relief for the sector.
Read the full statement here: https://t.co/JUxOIX7O86— Tulip Siddiq (@TulipSiddiq) September 19, 2024
Government Seeks Investment Trust Feedback
The CCI framework aims to help investors understand the
costs and value of their investments. The Government and FCA are also seeking
feedback from the investment trust sector on the existing cost disclosure
requirements, which may affect these investment vehicles.
Investment trusts are significant in the UK, making up over
30% of the FTSE 250 and holding assets worth more than £260 billion. Factors
such as investment performance and market sentiment can influence their
valuations.
In response to industry feedback, the Government will
legislate to exempt listed investment trusts from the current PRIIPs Regulation
and amend other relevant laws. This measure will be temporary, as investment
trusts will later fall under the new UK retail disclosure framework.
In light of these changes, the FCA will apply new
forbearance measures. From September 19, it will not take action against
investment trusts that do not comply with PRIIPs regulations until the new
legislation is enacted. This is a temporary solution while long-term reforms
are developed.
This post is originally published on FINANCEMAGNATES.
