FCA proposes simpler investment cost disclosure regime
The FCA proposed simplifying investment cost disclosures for platforms, advisers and wealth managers, aligning with prior product disclosure reforms.
Proposals aim to create a consistent, plain-English investment cost disclosure framework across platforms, advisers and wealth managers. Firms gain flexibility to innovate consumer communications but must ensure clarity and Consumer Duty alignment.
Reshapes distribution disclosures across investment value chain; affects platform, advice and wealth propositions.
Action Required
Assess disclosure templates, plain-English communications and cost calculation methodologies against the proposed simplified regime.
Consolidation of investment disclosure rules has cross-sector operational and Consumer Duty implications.
Review cost disclosure content, formats and language. Engage with consultation, align with Consumer Duty communications standards, and plan implementation of simplified framework.
“The FCA is proposing to simplify how platforms, advisers and wealth managers communicate the costs of investing and reminding firms to communicate with consumers in plain English. The proposals bring all investment cost disclosures into line with previous investment product disclosure reforms.”