There is a lot of detail in the Autumn statement beynd the headline grabbing news of National Insurance cuts and alchohol duty freezes. With respect to our industry, we have the following:

UK Retail Disclosure Framework – The government has published a draft statutory instrument setting out how it will replace the retained EU law Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation with a new framework tailored to the UK. The accompanying policy note confirms the scope of the new framework, including its application to overseas funds, and sets out the government’s intention to fully resolve legislative issues with cost disclosure.

The accompanying policy note  – which you can read in full here – recognises the problems that the investment company industry has been facing on cost disclosures.

The government has also noted some stakeholders’ concerns with current cost disclosure requirements, and in particular their potential impact on the investment company sector. The UK has a world leading investment company sector, which is highly aligned with the government’s priority to promote long term, productive investment. Representing over £260 billion of assets, investment companies provide a key source of capital and liquidity to support economic growth.

Our reading is that the old inflexible and misleading EU rules will be swept away. What isn’t yet clear is what will replace them. We see that:

The FCA will publish a consultation on their draft rules to replace the PRIIPs Regulation, and certain MiFID provisions related to cost disclosure, in due course.

It is also worth highlighting that:

HM Treasury intends to legislate in 2024, subject to Parliamentary time.

Fingers crossed!