FCA Moves to Simplify Investment Cost Disclosures

The proposed framework aims to harmonize investment product disclosures, forcing distributors to present their own fees alongside product costs. By adopting the Consumer Composite Investments (CCI) format, the FCA intends to move away from static, complex documentation toward dynamic, digital reporting. This shift requires firms to provide ongoing, personalized statements that illustrate the impact of fees in both percentage and pound terms.

Industry reactions are mixed, balancing support for clarity with concerns over implementation burdens. Holly Mackay, founder of Boring Money, praised the move toward pound-denominated fee illustrations but warned that excessive transparency could overwhelm small-scale investors. She suggested that applying materiality thresholds—focusing on larger accounts—would prevent unnecessary administrative noise. Meanwhile, PIMFA senior policy advisor Julia Sage-Bell welcomed the flexible implementation window, noting that effective communication will require rigorous testing and design to ensure consumers truly grasp the underlying financial data.

Regulatory pressure is mounting as the FCA prepares for a June 2027 deadline, when firms must fully adopt the finalized CCI rules. A recent review of 132 pre-sale disclosure documents revealed that only 6 percent were written in plain English, with all samples exceeding the complexity of GCSE-level literacy. By mandating a transition to more accessible language and clearer formats, the regulator hopes to bridge the gap between technical compliance and genuine consumer comprehension.