Regulatory Frequently AskedQuestions86
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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Yes they are in scope of CCI. Just like CEIFs (listed Closed-Ended Investment Fund).