initiative<\/a> to make stocks and shares more accessible to individual investors while maintaining consumer protections, according to the FCA.<\/p>\n\u201cThis is one of the biggest weeks for UK retail investment in recent history,\u201d Jonathan Lipkin, Director of Policy, Strategy and Innovation at the Investment Association, told Reuters. \u201cIt is also, relative to the EU, a moment in time where we more clearly define how we\u2019re going to go forward in a post-Brexit environment,\u201d he said.<\/p>\n
<\/p>\n
The FCA stated it will eliminate the EU\u2019s disclosure rules under the Packaged Retail and Insurance-based Investment Products (PRIIPs) regulation. The regulator will replace them with a framework for Consumer Composite Investments (CCI), covering investment funds, investment trusts, and unit-linked life insurance policies, according to the announcement.<\/p>\n
The FCA estimates approximately 12.5 million UK adults hold products that will be covered under the CCI framework. The regulator has consulted on the framework since last year, and the final rules simplify cost disclosures and clarify the connection between risk and reward, the FCA said. The framework is scheduled to take effect in June 2027.<\/p>\n
The regulator also outlined revisions to client classifications to distinguish between retail and professional investors. Professional clients will no longer be covered by the FCA\u2019s consumer duty, which imposes higher standards of care, according to the announcement.<\/p>\n
The threshold for professional status remains high, but individuals holding at least \u00a310 million ($13.3 million) in cash can now opt out of consumer protections, the FCA stated. The regulator is also eliminating the \u201cquantitative\u201d test, previously based on criteria such as trading at least 10 times per quarter, citing potential for misuse.<\/p>\n
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