PRIIPs and UK Retail Disclosure
This consultation sets out the government’s plans to revoke the PRIIPs Regulation and seeks views on a proposed alternative framework for retail disclosure, as part of the implementation of the Future Regulatory Framework (FRF) Review.
Retail disclosure regulations set the rules on what information and documentation needs to be provided when a member of the public (who is not a professional or institutional investor) buys an investment product. In the UK, some of these rules derive from the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation, an EU regulation that was brought onto the UK statute book following our exit from the EU. The PRIIPs Regulation has been widely criticised due to the misleading information that it requires be provided to investors and the unnecessary burden that it places on firms.
This consultation sets out the government’s plans to revoke the PRIIPs Regulation and seeks views on a proposed alternative framework for retail disclosure. In line with the FRF, the Financial Conduct Authority (FCA) will be responsible for setting detailed disclosure rules. The framework set out in this consultation will empower the FCA to deliver a regime that promotes informed retail investor participation in UK markets.