FCA Consults on Simpler Investment Fee Rules as Only 6% of Disclosures Use Plain English
Updated
Updated · Wealth Briefing · Jul 3
FCA Consults on Simpler Investment Fee Rules as Only 6% of Disclosures Use Plain English
3 articles · Updated · Wealth Briefing · Jul 3
Summary
30% of non-advised platform users do not know what they are charged, prompting the FCA to consult on simpler rules for showing product, distribution and advice costs.
The proposals would require distributors to show their own charges alongside product costs in the CCI format and to report the total cost of investing regularly, while also covering fees and interest on client cash.
Only 6% of 132 pre-sale disclosure documents reviewed were written in plain English, and all were more complex than GCSE level, reinforcing the regulator's case for plainer, more consistent communication.
Industry groups broadly backed the added flexibility and digital, more personalized reporting, though some warned that highly detailed cash-cost disclosures for small balances could add complexity with limited consumer benefit.
June 2027 is the key deadline for firms to comply with the FCA's CCI disclosure regime, giving the consultation direct implications for how UK investment products are explained before sale.
As UK finance adopts radical transparency, could the cost of compliance ultimately be passed back to investors?
Will simplifying investment jargon for the 2027 deadline inadvertently hide crucial risks from everyday investors?
With the 2027 deadline near, can AI make complex investment fees simple enough for everyone to understand?
UK Investment Cost Disclosure Overhaul: Navigating the FCA’s Consumer Composite Investments (CCI) Regime and the 2026–2027 Transition
Overview
As of July 2026, the financial industry is adapting to the FCA’s new Consumer Composite Investments (CCI) regime, which introduces updated investment cost disclosure rules. The FCA has focused on aligning the CCI regime with its broader Consumer Duty, aiming to ensure regulatory consistency and streamline compliance for firms. By amending requirements for distributors to report product summary errors in line with Consumer Duty principles, the FCA is fostering a more coherent regulatory environment. These changes help firms simplify their internal processes, making it easier to identify and communicate product errors across both the CCI regime and Consumer Duty frameworks.