We have today set out temporary measures to give investment companies greater ability to explain their costs and charges to help consumers make better informed investment decisions.
We are taking steps to address concerns that current disclosure obligations are producing unhelpful cost information for consumers.
To support better cost disclosure, we will allow funds to provide a factual breakdown of the component parts of their costs.
This will enable funds to provide additional context where they are concerned that the aggregate figure currently required by legislation does not accurately reflect ongoing costs.
This measure is not intended as a long-term solution, but is a step towards wider reform.
Investment companies, and funds that invest in investment companies, can also consider how they reflect this additional information in their wider disclosure documents. We also expect firms to consider their obligations under the Consumer Duty.
These changes support our objectives under the Consumer Duty, that consumers receive the information they need, at the right time, and presented in a way that they understand.
We are already working towards wider changes to the cost-disclosure regime, subject to legislative change, including the revocation of PRIIPs Regulation.
In its recent Policy Statement, the Treasury has committed to repeal relevant MiFID cost and charges provisions. This will allow us to design and deliver a comprehensive and cohesive cost disclosure framework. We look forward to the opportunity to implement the future retail disclosure regime.
The FCA will continue to work closely with the Treasury to ensure the Future Disclosure Framework improves market transparency, competition, and consumer protection.
Further information
Read our statement on communications in relation to PRIIPs and UCITS.