On 13th December 2022 the UK Financial Conduct Authority (“FCA”) published Discussion Paper 22/6: Future Disclosure Framework (“DP22/6”). The purpose of DP22/6 is to solicit opinions on the FCA’s ideas for creating a UK-specific retail disclosure framework. [While the formal discussion period has concluded, the ideas remain highly relevant as the FCA continues to shape future rules.]

The discussion paper functions as an early-stage policy note, signalling how the FCA may draft rules and supporting legislation.

Who should consider the Future Disclosure Framework?

DP22/6 (and this article) will be of interest to:

  • Stockbrokers;
  • providers and distributors of investment trusts and other listed retail investment vehicles;
  • issuers of structured products and derivatives;
  • firms operating retail distribution platforms;
  • firms which manufacture non-PRIIP packaged products, PRIIPs, UCITS and certain non-UCITS retail schemes; and
  • those who advise on or distribute these.

Quick recap: The PRIIPs regulation

The Packaged Retail and Insurance-based Investment Products (“PRIIPs”) regulation entered into force on 1st January 2018. Since then, firms involved in manufacturing or distributing (advising on or selling) certain retail investment products have been required to:

  • create a Key Information Document (“KID”) for each in-scope investment product;
  • publish these KIDs on their websites; and
  • provide the relevant KID to retail clients before they purchase an in-scope investment product.

A broad range of retail products are caught by PRIIPs. This includes derivatives such as options, futures and contracts for differences. KIDs are standalone documents that must contain a specified range of information to help investors understand the key features, risks and costs of an investment product.

[More information is available on the FCA’s website under PRIIPs disclosure guidance.]

What would a UK retail disclosure framework mean for the PRIIPs Regulation?

The existing PRIIPs regulation is expected to be revoked as part of the UK’s evolving post-Brexit regulatory strategy. The FCA intends to establish its own retail disclosure regime tailored to UK markets. This work is part of the FCA and Treasury’s broader strategy to modernise the UK’s disclosure regime following Brexit.

A draft statutory instrument (SI) will be required to implement the new framework, outlining the technical details that replace the PRIIPs regulation. Firms should continue to monitor FCA and Treasury communications, as the publication of a draft SI will mark the beginning of formal legislative changes.

As part of the evolving landscape, the FCA is also reviewing disclosure expectations for other investment vehicles, including the potential introduction of a new CCI regime (for collective consumer investments). This may affect the classification and treatment of certain products under the new disclosure framework.

Why replace PRIIPs?

The FCA’s motivations include:

  • Keeping pace with digitisation: The current PRIIPs framework was built in a paper-based era. However, the FCA cites research suggesting UK investors are among the most digitally savvy in Europe, and more likely to engage with mobile-first and interactive content than with static PDFs.
  • Improving proportionality and flexibility: The FCA believes that strict length and format rules have led firms to focus more on compliance than usability. For example, KID length prescriptions (three A4 pages) may limit the effectiveness of communication.

This work complements the FCA’s broader Consumer Duty agenda to improve consumer outcomes.

Key ideas for a Future Disclosure Framework

DP22/6 explores several reforms to make disclosures more useful and accessible to investors:

  • Technology neutrality: The FCA is considering the role of machine-readable disclosures for use by aggregators or comparison tools. However, it also recognises that many consumers still prefer or require paper disclosures and is likely to retain “durable medium” requirements for now.
  • Distributor-led disclosures: The FCA explores whether retail product distributors might be better positioned than manufacturers to design disclosures, given their day-to-day engagement with retail clients.
  • Liability for inadequate disclosure: Under current rules, manufacturers are liable for failing to provide KIDs. The FCA is assessing whether distributors should share responsibility when failing to provide required disclosures.
  • From prescription to good design: The FCA supports moving away from strict presentation requirements toward principles of good communication design. Features might include:
    • plain language over jargon;
    • visual aids like charts and graphics;
    • layering of information (simple summaries with links to more detail);
    • dashboards summarising costs, risks, and minimum holding periods; and
    • interactive features like pop-ups for definitions.
  • Retaining prescription where necessary: For example, how costs and charges are disclosed may remain prescribed to ensure comparability, though design principles may improve their presentation.
  • Customisation over one-size-fits-all: Disclosures should be adaptable to specific products and investor types. For instance, more complex products may require more detailed disclosures, while simpler retail offerings can use streamlined formats.

Implications for retail firms

[Although the consultation period for DP22/6 has passed, the FCA’s intentions point to a significant shift in approach.]

Firms distributing or manufacturing retail products should begin considering how their current disclosure practices would align with:

  • more visual, layered, and interactive disclosures;
  • shared responsibility across product and distribution chains;
  • new expectations under Consumer Duty;
  • integration with digital-first communications strategies.

Proactive firms may find opportunities to pilot or test new approaches to disclosure, gaining early insight into investor preferences.

Summary

As the FCA continues to modernise the UK’s retail disclosure regime, firms can expect a shift away from uniform, paper-based formats toward a more flexible and user-focused approach. The ultimate goal is smarter regulation that supports investor understanding, transparency, and trust—without reducing consumer protection.

About us

C&G’s consultants have substantial experience designing and implementing compliance programmes for firms serving retail clients. We help clients navigate regulatory change, develop effective disclosure strategies, and align with FCA expectations.

Contact us if you would like support in reviewing your current disclosure framework or preparing for anticipated reforms.

References

  1. DP22/6: Future Disclosure Framework, Financial Conduct Authority. Available at: https://www.fca.org.uk/publications/discussion-papers/dp22-6-future-disclosure-framework (last accessed 3rd January 2023).
  2. PRIIPs disclosure: Key Information Documents. Available at: https://www.fca.org.uk/firms/priips-disclosure-key-information-documents (last accessed 3rd January 2023).