The Financial Conduct Authority (FCA) has set out plans to simplify product information supplied to investors to boost confidence and drive investment.
In a move set to make the process of marketing new investment products more straightforward, the regulator has proposed replacing the existing rules around providing fund documents with a flexible and proportionate product information framework tailored to UK markets and firms.
Currently, EU-inherited regulation means that customers purchasing investment funds are supplied with standardised documents, which can be complex and unclear for consumers.
Under the FCA’s proposed system, investment marketing teams will have greater flexibility over how they communicate with customers and prospective clients.
It will be a vital tool for them in helping consumers understand the investment products they are buying and will help them make more informed decisions.
The updated system will also provide firms with the flexibility to innovate, while ensuring consistency and comparability across the market to consumers.
“The way people invest has changed. We want to ensure that firms can communicate with their customers in a way that gets them the information they need when they need it,” said Simon Walls, interim executive director of markets at the FCA.
“High quality product information will give consumers the confidence to invest. Increased participation in this market will not only benefit consumers but will also provide capital to drive the economy and boost growth.”
FCA figures highlight , more than 12.6 million UK investors (23% of all adults) hold investments falling under the Consumer Composite Investment (CCI) regime.
The regulator added that it welcomes views through the consultation about the optimum way to design an outcomes-focused regulation fit for many years to come.
The consultation paper closes on 20 March 2025.