The draft Consumer Composite Investments (Designated Activities) Regulations 2024 have been published, together with an explanatory memorandum. The Regulations establish a proposed new legislative framework for the regulation of Consumer Composite Investments, formerly Packaged Retail and Insurance-based Investment Products. They replace the following assimilated law relating to PRIIPs: (i) the PRIIPs Regulation; (ii) the PRIIPs Regulations 2017; (iii) Commission Delegated Regulation (EU) 2017/653; and (iv) Commission Delegated Regulation (EU) 2016/1904. The Regulations take into account feedback that HM Treasury received on the original version of the draft statutory instrument, which was published for technical comments in November 2023.
The instrument specifies activities relating to CCIs as designated activities for the purposes of the Financial Services and Markets Act 2000 and provides the U.K. Financial Conduct Authority with rule-making and certain supervision and enforcement powers to enable it to set the detailed rules that firms must adhere to. The instrument also makes transitional provisions and consequential amendments to other legislation to ensure the CCI regime remains operable. The instrument will bring Undertakings for Collective Investment in Transferable Securities funds into scope of the new regime. UCITS were previously exempt from providing the PRIIPs key information document and instead provided modified disclosure specifically for UCITS. The government will continue this transitional arrangement until December 31, 2026, as the FCA finalizes the replacement retail disclosure framework. UCITS funds may also choose to transition earlier to the new disclosure requirements under the CCI Regime, once FCA rules are in place.
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