The Financial Conduct Authority (FCA) has introduced a set of measures designed to empower retail investment, reinforce wholesale markets and maintain the UK’s position as a "world-leading financial centre".

The regulator said the new rules give it the opportunity to play its part in building a stronger investment culture, and that it is seeking view to make sure regulation supports consumers to invest with confidence.

Under these proposals, the FCA will enhance how firms classify their clients to give them confidence when dealing with professional investors. This is set to allow firms to offer a more diverse range of products.

In retail investment disclosures, the regulator will shift away from prescriptive and complex templates that consumers don’t find useful. This is expected to give firms more freedom to put the consumer first, innovate and help their customers understand potential returns, as well as costs and risks.

Furthermore, the FCA is seeking views on how longer-term regulation can keep up with the evolving retail investment landscape and help shift the dial on risk appetite.

Executive director of markets at the FCA, Simon Walls, said: "Today’s measures support investment risk culture right along the spectrum. They ensure that firms can compete to give retail customers material that informs and engages them. They also draw a brighter line for professional markets, defined by contracting parties, informed consent and regulation that is proportionate to that."

Manager for long-term savings policy at the Association of British Insurers, George Ritchie, added that the new package reflects "promising progress through empowering more people to invest".

He concluded: "By June 2027, firms will have the flexibility to deliver clearer information on cost, performance and risk so customers can make better informed investment decisions.

"The FCA’s commitment to reviewing MiFID in 2026 to ensure consistency across the rulebook is welcome news. For maximum success, we now urge the FCA to support the industry in developing practical frameworks for manufacturers and distributors to share information effectively to meet the new requirements.

"Additionally, the discussion paper on expanding consumer access to investments is another step in the right direction. We’re pleased to see the regulator continuing to consider how to move away from our current risk averse culture, and towards a sensible, informed approach which supports innovation while protecting consumers."

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