The FCA has announced a significant overhaul of the regulatory framework governing investment information, aimed at increasing investor confidence and engagement by simplifying the information provided.
This move seeks to replace the complex and sometimes unclear standardised documents, which are a remnant of the UK’s time within the EU, with a more streamlined and flexible system tailored to the UK market.
Under the proposed changes, firms will have greater autonomy in deciding the content, timing, and method of their communications with investors. This initiative is designed to make investment documents more user-friendly and informative, thereby helping investors make better-informed decisions without the deterrent of overly complex information.
Simon Walls, interim executive director of markets at the FCA, emphasized the evolving nature of investment and the need for adaptive communication strategies. “The way people invest has changed. We want to ensure that firms can communicate with their customers in a way that gets them the information they need when they need it,” he stated. He further highlighted that “High quality product information will give consumers the confidence to invest; increased participation in this market will not only benefit consumers but will also provide capital to drive the economy and boost growth.”
The FCA’s proposals also include specific detailed requirements where necessary to maintain consistency and comparability across the market. This approach aims to foster a regulatory environment that supports innovation while ensuring that all investment products are presented clearly and comparably.
The FCA is currently seeking feedback on these proposals through a public consultation process. They are particularly interested in opinions on how to design an outcomes-focused regulation that will be effective for many years to come, indicating a commitment to long-term improvement in financial market transparency.
Copyright © 2025 RegTech Analyst
Copyright © 2018 RegTech Analyst
