Responding to the FCA’s consultation on a new product information framework for Consumer Composite Investments (CCI), Jonathan Lipkin, Director for Policy, Strategy and Innovation at the Investment Association, said:
“A well-designed retail disclosure regime can empower investors with clear, decision-useful information, while supporting a more dynamic and competitive UK retail investment market. Alongside other regulatory reforms, such as targeted support, the CCI initiative presents an important opportunity to increase consumer engagement in an increasingly digital world.
“It is crucial that the lessons of PRIIPs and MiFID are fully learnt to ensure that the new framework genuinely results in a better information set for UK retail investors. Currently, the proposals fall short of achieving this, in particular on costs and charges, with the flawed methodologies from PRIIPs carried forward.
“Greater clarity is also needed on the purpose of the Product Summary, its place in the information and sales process, and the role of distributors. Resolving this will help strike the right balance between ensuring comparability of information, while offering greater flexibility to provide fund information in a more engaging and accessible manner.
“These are significant concerns, and we look forward to discussing them with the regulator and other stakeholders before definitive decisions are taken about the final shape of the proposals.”
For further information, please contact:
Helen Ayres, Head of Communications: helen.ayres@theia.org
T: +44 (0)20 7269 4620
Ellen Hodgetts, Communications Manager: ellen.hodgetts@theia.org
T: +44 7548841289
IA Press Office: press@theia.org
About the Investment Association (IA):
- The IA champions UK investment management, supporting British savers, investors and businesses. Our 250 members manage £9.1 trillion of assets and the investment management industry supports 126,400 jobs across the UK.
- Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
- Our purpose is to ensure investment managers are in the best possible position to:
- Build people’s resilience to financial adversity
- Help people achieve their financial aspirations
- Enable people to maintain a decent standard of living as they grow older
- Contribute to economic growth through the efficient allocation of capital.
- The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
- The UK is the second largest investment management centre in the world, after the US and manages 37% of all assets managed in Europe.