- AJ Bell has urged the FCA to stick to a principles-based approach to setting the rules for investment disclosure, in its response to the FCA consultation on creating a product information framework for Consumer Composite Investments (CCI)
- The investment platform has expressed its concerns that the proposed rules may be too prescriptive and not align with the policy intent
- Instead, AJ Bell urges the FCA to be clearer that manufacturers should create concise, understandable product summaries for a range of consumers. Distributors could then choose to adapt these product summaries, in a move that could encourage innovation in how customers view data
Rachel Vahey, head of public policy at AJ Bell comments:
"We welcome and support the FCA’s efforts to make sure customers have access to accurate and comparable product information, which is crucial for making informed investment decisions. However, we are concerned the proposed rules may be too prescriptive and not fully align with the intended policy goals. Instead, the FCA needs to ditch the detailed rules for distributors and take a principles-based approach to communicating this information.
“Manufacturers should be responsible for creating clear and concise product summaries that are easy for all consumers, including those with less experience, to understand. Overloading customers with too much information has been shown to be counterproductive, often confusing customers into ‘analysis paralysis’ rather than helping them make good decisions.
“This approach would allow distributors to focus on providing key information to customers in the right way at the right time. Distributers shouldn’t be saddled with the additional responsibility of reviewing or amending product summaries from manufacturers, especially when this could amount to considering thousands of platform investments, a clearly unworkable position. Instead, these firms should have the flexibility to adapt these summaries if they choose.”
