On 10 October 2024, the draft Consumer Composite Investments (Designated Activities) Regulations 2024 were published (the draft Regulations) were published on legislation.gov.uk, along with a draft explanatory memorandum.
The draft Regulations replace assimilated law relating to the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation, establishing a new legislative framework for the regulation of Consumer Composite Investments (CCIs), formerly PRIIPs. The currently PRIIPs regime was widely criticised for imposing prescriptive requirements and leading to the presentation of misleading information to retail investors.
The new CCI framework created by the draft Regulations will replace the PRIIPs regime with a new UK retail disclosure regime. The draft Regulations specify activities relating to CCIs as designated activities for the purposes of the Financial Services and Markets Act 2000 and provide the Financial Conduct Authority with rule-making and certain supervision and enforcement powers to enable it to set the regulatory provisions that apply to persons carrying out designated activities relating to CCIs. The draft Regulations also make transitional provisions and consequential amendments to other legislation to ensure the CCI regime remains operable.