On 11 July 2023, HM Treasury published a response to its consultation on UK retail disclosure, which was published on 9 December 2022 as part of the Edinburgh Reforms.
In its previous consultation, HM Treasury set out the government’s plans to revoke the Packaged Retail Investment and Insurance Products (PRIIPs) Regulation and sought views on a proposed alternative framework for retail disclosure, as part of the implementation of the Future Regulation Framework Review. The framework set out in the consultation would empower the FCA to deliver a regime that promotes informed retail investors’ participation in UK markets.
The consultation response confirms the government’s intention to entirely remove from legislation all firm-facing retail disclosure requirements currently in the PRIIPs Regulation and ensure that the FCA can deliver a new UK retail disclosure regime which is tailored and proportionate to the UK market.
The response also outlines the government’s vision for the new retail disclosure framework and further details on next steps to deliver this reform.
Following publication of the consultation response, the government plans to publish a draft statutory instrument by 2024 to enable the FCA to deliver the new retail disclosure regime, following the repeal of the PRIIPs Regulation (and related secondary legislation). The FCA is also expected to publish a consultation paper seeking industry feedback on its draft rules for the new retail disclosure regime, building on the principles discussed in this consultation and the FCA’s December 2022 Discussion Paper.