Regulatory Alerts2024-12-18
Added · Updated
PS25/20: Final rules for Consumer Composite Investments
The document establishes final rules replacing PRIIPs and UCITS disclosure requirements with a flexible Consumer Composite Investments (CCI) regime for UK retail investors. Manufacturers must produce a consumer-friendly product summary containing standardized metrics on costs, risk, return, and past performance, while distributors are prohibited from creating their own summaries and must highlight key information pre-sale. The rules mandate that the ongoing costs figure serves as the headline disclosure, require a balanced presentation of risk and return, and specify a value-at-risk equivalent volatility model for structured products. The regime applies to manufacturers and distributors of CCIs, with an 18-month implementation period starting 8 December 2025 and full force on 8 June 2027.