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, nevertheless, been criticised for utilizing generic illustration figures and for missing readability.
Put up 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 adjustments coming down the road have been a part of an “formidable agenda” for UK asset administration.
He mentioned the brand new regime would give traders “ample and significant info” on their investments earlier than they purchase and any adjustments 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 definitely welcome a revocation of the PRIIPs regulation, which has resulted in some situations of price disclosure not reflecting the true prices of an funding. We need to make sure that any substitute regime offers traders ample and significant info to tell their resolution making.
“We sit up for 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 shopper 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 an “alphabet soup” of UCITS, AIFMD and a few components of MIFID.
The goal in the end, he mentioned, was a “smarter regulatory framework.”
On the capital markets facet the FCA is “pursuing a set of landmark proposals to reinforce UK capital markets.”
