The Financial Conduct Authority (FCA) has launched a consultation on simplifying how advisers, wealth managers, and platforms communicate the costs of investing.

The proposals aim to bring all investment cost disclosures in line with previous product disclosure reforms for retail investments to create a more consistent framework.

Cost disclosure requirements derived from the Markets in Financial Instruments Directive (MiFID) will be aligned with the FCA’s Consumer Composite Investments (CCI) regime, while the disclosure requirements for MiFID, Insurance Distribution Directive (IDD), and non-MiFID investments business will be simplified and consolidated.

The regulator said the proposals would allow firms to innovate, test, and compete to inform and engage retail investors, communicate in plain English, and give information in engaging ways.

It argued this would help consumers to compare products more easily and invest with greater confidence.

Under the proposals, distributers would present their own costs alongside product costs, consistent with the CCI format, when selling products.

They will also be required to account regularly for the total cost of investing.

The FCA’s proposals cover firms’ disclosures to consumers when they charge fees or pay interest on client cash.

From June next year, firms will need to follow the FCA’s CCI rules, altering how they explain investments to consumers before they buy.

“We want more consumers to feel confident investing by getting clearer information in plain English on products and charges,” commented FCA director of consumer investments, Lucy Castledine.

“The changes will give firms more freedom to innovate and communicate in ways that build trust and support informed decisions to help consumers navigate their financial lives.”

Broadstone head of personal financial planning, Rob Hillock, said: "This consultation reflects a recognition that investment disclosures have become increasingly complex, making it difficult for consumers to understand what they are paying and the value they receive.

"A simpler, more consistent approach to presenting product, advice and distribution costs has the potential to improve consumer understanding while reducing unnecessary complexity for firms.

"The key will be ensuring that simplification doesn't dilute transparency or make it harder for consumers to compare products and services.

"Firms should use the consultation period to review how they communicate costs and consider what operational changes may be needed if the proposals are implemented."

The consultation closes on 21 August 2026.

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