LONDON, Sept 19 (Askume) – Financial policymakers are planning sweeping overhauls of Britain’s retail investment disclosure requirements, replacing rules inherited from the European Union with more flexible regulations they hope will help reinvigorate Britain’s capital markets.
The Treasury and the Financial Conduct Authority (FCA) on Thursday announced plans for a new regime called Consumer Comprehensive Investing (CCI) to address industry concerns about disclosures, particularly cost.
The government said it will introduce legislation as soon as possible to replace regulation of packaged retail and insurance investment products (PRIIPs) inherited from the European Union with a new framework, with the new rules expected to come into force next year.
“Ensuring that retail investors can make informed investment decisions is a vital part of ensuring the health of the capital markets,” the FCA said in a statement.
“As part of this, the Government and the FCA have committed to replacing the EU-derived consumer cost disclosure rules with a new framework better suited to the UK market and companies.”
The FCA said the CCI would help investors “better understand what they are paying for different products and investment vehicles”, including investment trusts, which have been severely impacted by current EU disclosure rules.
Christian Pittard, head of closed-end funds at Aberdeen (ABDN.L) , said in a statement: “We believe this decision reflects the government’s desire to make the UK an attractive place to invest. Goal.”
With over £260 billion of assets under management, investment trusts account for over 30% of the FTSE 250 market.
