Regulatory Frequently AskedQuestions78

The ongoing costs of any investee closed-ended investment fund do not need to be aggregated into the ongoing costs figure of the investor fund, but they must still be disclosed separately in the product summary.

Where past performance exists, it must be presented in a line graph assuming reinvestment of any dividends. The graph must show either (i) 10 years of performance ending on a date no earlier than 60 days before the production of the product summary, or (ii) the entire period since the CCI was manufactured, where this is shorter, again ending no earlier than 60 days before the production of the summary. Where no past performance is available, the risk and return section must instead include a narrative explanation of the key drivers of performance.

The manufacturer must review the core information disclosures on a regular basis and at least once every 12 months. The disclosures and the product summary must be revised or updated as necessary to ensure they remain accurate, up to date, and compliant with applicable requirements.

Where material changes are made, the manufacturer must provide each distributor with a reasonable summary of those changes. If no revisions or updates are required following the review, the manufacturer must communicate this fact to the distributors.

The volatility of the consumer composite investment must be calculated and rescaled to an annual basis using the standard volatility formula.

The risk and return score for the consumer composite investment must be presented clearly and prominently in the product summary on a horizontal linear scale ranging from 1 to 10, in the manner prescribed by the FCA.

The manufacturer is responsible for calculating costs and charges. These must be calculated over the preceding 12-month period, or over the life of the product where this is shorter than 12 months, using the assumed investment amount. Costs and charges must always be presented in GBP; where the product is denominated in a foreign currency, the exchange rate used must be disclosed.

The CCI regime has an 18-month transition period starting on 8 December 2025, allows early adoption from 6 April 2026, and becomes fully mandatory on 8 June 2027.

Where the time series covers more than 10 years, the manufacturer may proceed directly to the volatility calculation. Where the time series covers less than 10 years, a simulation approach must be used, based on historical values of either a reference asset or an appropriate benchmark. In all cases, the time series must not end more than 60 days before the calculation date.

Yes. The CCI regime applies to non-UK products if they are made available or marketed to UK retail investors. The jurisdiction of the product or issuer is not relevant; what matters is whether UK retail investors are being targeted.

Not necessarily. A score of 7 can indicate either that the product allows losses beyond your initial investment or that it exhibits extremely high volatility. Some funds, such as certain crypto funds, are classified as 7 due to their volatility, even when losses are limited to the initial investment amount.

No. Firms are not required to describe a target market. The FCA considers that the information included in the product summary provides consumers with sufficient information to assess whether a product is suitable for their needs.

Yes they are in scope of CCI. Just like CEIFs (listed Closed-Ended Investment Fund).