FCA chairman Ashley Alder has confirmed that the FCA is working intensively on a brand new post-Brexit PRIIPs regime to enhance retail asset administration regulation.
In a speech within the Metropolis this week he mentioned new guidelines have been on the best way.
The packaged retail and insurance-based funding merchandise (PRIIPs) regime was an EU directive adopted by the FCA as a part of a swathe of retail funding regulation.
It has, nonetheless, been criticised for utilizing generic illustration figures and for missing readability.
Submit Brexit, the FCA has mentioned it wished to introduce a brand new regime for packaged merchandise.
In a speech to the Bloomberg Purchase-side Discussion board this week, Mr Alder mentioned the PRIPPs modifications coming down the road have been a part of an “formidable agenda” for UK asset administration.
He mentioned the brand new regime would give buyers “enough and significant info” on their investments earlier than they purchase and any modifications can be in tandem with the work on the advice-guidance boundary to “re-set” how customers have interaction with monetary merchandise.
He mentioned: “We actually welcome a revocation of the PRIIPs regulation, which has resulted in some cases of price disclosure not reflecting the true prices of an funding. We wish to make sure that any alternative regime provides buyers enough and significant info to tell their determination making.
“We look ahead to consulting on a brand new regime that’s proportionate and tailor-made to the market and merchandise right here within the UK, and which permits corporations to design a extra partaking client journey. Along with our work on the advice-guidance boundary, we expect that this has the potential to basically re-set how customers have interaction with monetary merchandise.”
Mr Alder mentioned updating and changing EU regulation would take time because the FCA sorted by means of an “alphabet soup” of UCITS, AIFMD and a few elements of MIFID.
The intention in the end, he mentioned, was a “smarter regulatory framework.”
On the capital markets aspect the FCA is “pursuing a set of landmark proposals to boost UK capital markets.”
