FCA Introduces the Consumer Composite Investments (CCI) Framework

Currently, UK financial services firms disclose charges and fees under old EU standards.  You may have heard the terms:

• PRIIPS – Packaged Retail And Insurance-Based Investment Products.
• UCITS - Undertaking for Collective Investment in Transferable Securities.

These set out the format for issuing key facts documentation and illustrations to consumers and retail investors.

The FCA wants disclosure to be more flexible than the above prescribed methods but also to be consumer outcome focused.

The aim will be to make financial products more transparent and easier for the consumer to understand.

Comments

We agree that consumer documentation is still to complex, but we do not see the new CCI framework being anything other than improving the shortfalls and complexities of PRIIPS and UCITS standards.

In its CCI framework, the FCA has already proposed:

• A simpler Product Summary and
• A Machine-Readable file containing more information including:
• The Product Summary that can then be used by many different platforms and tools to display/deliver the required information in an understandable format adapted for the particular access platform a consumer is using.