On 13 December 2022, the FCA published Discussion Paper 22/6: Future Disclosure Framework (DP22/6).

The distribution of retail investments has changed in recent years, and disclosure regulations have not always reflected this. This FCA has seen a trend towards online investment, and subsequently an increase in digital distribution of disclosure. However, most disclosure regulations were designed with advised sales and paper-based disclosure in mind. A review of retail disclosure is necessary to help financial services to be fit for the future.

Furthermore, on 9 December 2022, HM Treasury issued a Consultation Paper on the future of retail disclosure in the UK. This sets out the Government’s intention to revoke the onshored EU Regulation on Packaged Retail and Insurance–based Investment Products (PRIIPs) and the Undertaking for Collective Investment in Transferable Securities (UCITS) disclosure requirements, so that the FCA will become responsible for establishing a future retail disclosure regime. The revocation of the PRIIPs Regulation provides the FCA with an opportunity to design and deliver a retail disclosure framework that is tailored to the UK market and supports retail investors to make informed investment decisions.

Therefore DP22/6 invites feedback on how the FCA can design a good disclosure regime. The FCA believes a replacement regime should be supportive, engaging, accessible and flexible. The FCA also believes that these criteria will safeguard investor protection while increasing choice and reducing unnecessary over prescriptive constraint on firms.

The FCA also seeks input on how they can future-proof retail disclosure regulation. It is important that a replacement regime does not constrain innovation in the market.

DP22/6 is seeking views on:

• The delivery of retail disclosure.
• The presentation of retail disclosure.
• The content of retail disclosure.

The FCA will ensure that its vision for the future disclosure regime will enable firms to meet their requirements under the Consumer Duty. The regulator also believes that the outcomes based objectives of the Consumer Duty will complement its aims in the disclosure space and will provide a basis on which it can design a flexible regime that reduces detailed disclosure rules.

The deadline for feedback on DP22/6 is 7 March 2023. The FCA will then provide feedback and issue a Consultation Paper.