The draft Consumer Composite Investments (Designated Activities) Regulations 2024 have been published. The Regulations will repeal all assimilated law relating to PRIIPs and create a UK regime of “consumer composite investments”. The Regulations specify activities relating to CCIs as designated activities for the purposes of the “designated activities regime” introduced into FSMA 2000 by FSMA 2023 and give the FCA rule making and certain supervision and enforcement powers in relation to them.
The Regulations:
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define a CCI
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provide that anyone manufacturing, advising, offering or selling a CCI to a UK retail investor will be in scope of the FCA’s retail disclosure rules regardless of their regulatory status
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give FCA the power to create tailored rules for retail disclosure that can apply to firms not authorised in respect of any RAO regulated activities
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give the FCA tailored supervision and enforcement powers and
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establish civil liability for breach of FCA Rules.