With this proposal, a custom framework for Consumer Composite Investments (CCIs) will take the place of the EU-inherited Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation.

The new framework, which is slated for quick legislative approval, aims to provide the FCA sufficient ability to carry out these reforms. The updated regulations promise to be more individualized and adaptable by resolving issues with the current PRIIPs structure. This will have a big influence on how expenses and other important information are revealed to investors.

Expected to take effect in the first half of 2025, the UK's new retail disclosure framework is pending parliamentary approval and an autumnal consultation process managed by the FCA. In order to guarantee the CCI framework's efficacy and conformity with market demands, a wide range of stakeholders' perspectives will be gathered throughout the consultation.

Additionally, in response to the investment trust sector's concerns about the present cost disclosure regulations, the Government and the FCA have taken action. Notably, until the new framework is completely implemented, investment trusts—which manage assets worth over £260 billion and account for over 30% of the FTSE 250—will shortly be exempt from the current PRIIPs requirements. This exception is a component of larger initiatives to improve financial rules so they better accommodate various investment vehicles and financial products.

With effect from September 19, the FCA has implemented a forbearance mechanism in response to these regulatory amendments. Investment trusts that do not adhere to the PRIIPs criteria will not be subject to supervisory or enforcement proceedings until the new amendments are implemented. The FCA's dedication to a seamless transition to a more efficient and inclusive regulatory environment is demonstrated by this temporary action.