Lewis Davison and William MacLeod: FCA's CCI a step backwards for investment companies

'Double-counting' issue back on the table

On 22 November, the UK government passed a new law excluding investment companies from requirements to produce a Packaged Retail and Insurance-based Investment Products (PRIIPs), Key Information Document (KID) and removed the requirement to publish aggregated costs.

This followed tireless campaigning from the industry and provided some relief from the issue of double-counting of 'costs' in product disclosures, due to the nature of investment companies as listed entities. But this is not the end. There are still issues that need to be addressed if we are to have a comprehensive and fair regulatory system for investment companies. The same group behind the lobby effort for the PRIIPs exemption are still engaged with this issue, led by Baroness Sharon Bowles, who continues to raise questions in the House of Lords and at the Financial Services Regula...