The Financial Conduct Authority (FCA) has published a discussion paper as it is looking for views from industry on the best way to replace the current packaged retail insurance-based investment products (Priips) regulation.
Chancellor Jeremy Hunt revealed on 9 December that the Priips rules will be scrapped in a bid to move away from legislation inherited from the EU after Brexit.
Hunt said the UK regulator will be responsible for designing and developing an alternative disclosure system tailor-made for the British market.
This will include deciding what type of information retail investors should receive in order to make an informed decision on what financial products to purchase.
More specifically, the FCA wants to hear from industry about when and in what format the information can be delivered to consumers so that it can be useful and supportive of their buying experience.
As part of the discussion paper, the watchdog is also seeking views on who should have responsibility for product disclosure.
Less rigid regime
Sarah Pritchard, executive director of markets at the FCA, said: “The current rules make it very difficult for consumers to get the information they need in the way they need it to help them make effective investment decisions.
“We now have the flexibility to design a new regime which is less rigid and more focused on the outcome we are seeking – we want consumers to have the confidence to invest and understand the levels of risk involved.
“This discussion paper aims to seek views from industry and consumers to help us design a disclosure regime that delivers to support that aim, and we welcome views from across the market to help us do so.”
Comments on the matter can be submitted to the FCA by 7 March 2023.