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DISC TP 2 Consumer composite investments: transitional provisions

Application

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  1. (1) During the transitional period:
    1. (a) the rules in these transitional provisions are to have effect; and
    2. (b) the other rules in DISC are to have effect only as specified in these transitional provisions. 

  2. (2) The transitional period begins on 6 April 2026 and ends on 7 June 2027.

     

Disclosure document: preparation and publication

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  1. (1) Subject to (4), for each consumer composite investment it manufactures, a manufacturer must prepare either:
    1. (a) a product summary in accordance with DISC 3; or
    2. (b) whichever of the following the manufacturer had to or would have had to prepare in relation to the consumer composite investment on 5 April 2026:
      1. (i) a key information document under the PRIIPs Regulation and the PRIIPs technical standards;
      2. (ii) a key investor information document under COLL 4.7 and the KII Regulation; or
      3. (iii) an EEA key investor information document under the provisions requiring the preparation of that document.
  2. (2) In these transitional provisions a ‘disclosure document’ means a document prepared by a manufacturer under (1).
  3. (3) In respect of each consumer composite investment for which it must prepare a disclosure document, a manufacturer must provide that document to a distributor in good time before the consumer composite investment is made available by that distributor for distribution to retail investors.
  4. (4) Where the consumer composite investment is:
    1. (a) a share in a closed-ended investment company that is UK-listed, the manufacturer is not required to prepare a disclosure document;
    2. (b) manufactured by an operator of a standalone scheme or sub-fund that is a recognised scheme by virtue of regulation 62 of the Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019, the manufacturer must prepare a disclosure document of the type specified in paragraph (1)(a) (a product summary prepared in accordance with DISC 3) in respect of that consumer composite investment; or
    3. (c) a product for which a manufacturer would not have had to prepare a document set out in (1)(b)(i), (ii) or (iii) on 5 April 2026, a manufacturer may produce whichever of those documents it considers most appropriate in relation to the consumer composite investment as an alternative to producing a product summary under (1)(a).
  5. (5) A manufacturer must publish a disclosure document it prepares in accordance with requirements in this rule on a publicly accessible website before the consumer composite investment is made available to a retail investor.
  6. (6) In this rule:
    1. (a) ‘closed-ended investment company’ has the meaning given in article 2.3 to 2.7 of Regulation (EU) No 1286/2014 of the European Parliament and of the Council; and
    2. (b) ‘UK-listed’ is interpreted in accordance with article 2.3 and 2.8 of Regulation (EU) No 1286/2014 of the European Parliament and of the Council.
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  1. (1) The effect of DISC TP 2.2R is to give most manufacturers the choice to either produce a product summary or continue to produce whichever disclosure document was or would have been required in respect of the consumer composite investment on the day before the commencement of the transitional period. This will be either a key information document, a key investor information document or an EEA key investor information document. Included are consumer composite investments that are new to market or were not otherwise subject to the previous disclosure regimes under the PRIIPs Regulation or the UCITS Directive the day before the commencement of the transitional period.
  2. (2) A document produced for a product before 6 April 2026 which meets the requirements of one of the regimes set out DISC TP 2.2R(1)(b)(i), (ii) or (iii) can continue to be used as a disclosure document during the transitional period, provided it continues to meet the requirements of the relevant regime. This includes for the purposes of the requirements of any source books as applied by DISC TP 2.11R.
  3. (3) Shares in closed-end investment companies that are UK-listed (interpreted as per DISC TP 2.2R(6)) are not subject to that requirement. For those shares, the manufacturer is not required to prepare a disclosure document during the transitional period.
  4. (4) A manufacturer which is recognised under regulation 62 of the Collective Investment Schemes (Amendment etc.) (EU Exit) Regulations 2019 and is therefore within the temporary marketing permission regime may only produce a product summary in respect of consumer composite investments it manufacturers under these transitional provisions. Should such a manufacturer do so, under regulation 66(1A) of those regulations it will not be required to produce a key investor information document. Should such a manufacturer continue to produce a key investor information document (and comply with the other provisions of regulation 66 of those regulations) under regulation 8 of the Consumer Composite Investments Regulations, these designated activity rules will be disapplied and it will not be required to produce a product summary. That exemption expires on 1 January 2027.
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Manufacturers which are authorised persons are reminded of their obligations under the FCA's rules – in particular, under the Consumer Duty (Principle 12 and PRIN 2A) –  which remain relevant during that period. 

Distribution of a consumer composite investment

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  1. (1) A firm must not distribute a consumer composite investment to a retail investor unless it provides the disclosure document for that consumer composite investment to the retail investor sufficiently early to allow the investor enough time to consider the disclosure document before being bound by any contract or offering relating to that consumer composite investment.
  2. (2) The requirement in (1) does not apply to a consumer composite investment for which a manufacturer is not required to prepare a disclosure document under DISC TP 2.2R(4)(a).
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DISC TP 2.5R(1) prohibits a firm from distributing a consumer composite investment to a retail investor without providing that investor with the disclosure document prepared for that consumer composite investment by the manufacturer. 

Disclosure document: review and revision

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  1. (1) In respect of each consumer composite investment it manufactures, a manufacturer must:
    1. (a) review any disclosure document prepared regularly and at least once in every 12-month period; and
    2. (b) revise or update the disclosure document where necessary so that it is up to date and compliant with DISC TP 2.2R.
  2. (2) Following a review under (1), a manufacturer must publish a revised or updated disclosure document on its website.

Financial promotions

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The rules in COBS 4 (relating to financial promotions) do not apply to a disclosure document, other than a product summary, provided the disclosure document complies with the relevant content requirements in DISC TP 2.2R(1)(b).

Additional product communications

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A firm must ensure that any additional product communication is consistent with the disclosure document prepared for the relevant consumer composite investment and the terms and conditions applicable to it.

Product summaries filed with the FCA

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  1. (1) Where an authorised fund manager prepares a disclosure document for a UCITS scheme or a non-UCITS retail scheme which it manages, it must file that disclosure document, and any amendments thereto, with the FCA.
  2. (2) The authorised fund manager of a feeder UCITS or feeder NURS must, in addition to (1), file the disclosure document of its master UCITS or qualifying master scheme, and any amendments thereto, with the FCA.

Consequential amendments

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  1. (1) Subject to (2), provisions in the following sourcebooks apply in respect of a consumer composite investment for which a disclosure document specified in DISC TP 2.2R(1)(b)(i), (ii) or (iii) is prepared, or is not required to be prepared by virtue of DISC TP 2.2R(4)(a), as they would have applied to that consumer composite investment on 5 April 2026:
    1. (a) BCOBS;
    2. (b) COBS;
    3. (c) COLL;
    4. (d) DEPP;
    5. (e) ESG;
    6. (f)  the Investment Funds sourcebook;
    7. (g) GEN; and
    8. (h) PRM.
  2. (2) References in the sourcebooks set out in (1) to requirements of the PRIIPs Regulation, the PRIIPs technical standards, COLL 4.7, the KII Regulation and the provisions requiring the preparation of the EEA key investor information document are to those requirements as applied by DISC TP 2.2R(1)(b).
  3. (3) In these transitional provisions the definitions below should be read as they had effect in the Handbook Glossary on 5 April 2026:
    1. (a) EEA key investor information document;
    2. (b) key information document;
    3. (c) key investor information document;
    4. (d) KII Regulation;
    5. (e) PRIIPs Regulation; and
    6. (f)  PRIIPs technical standards.
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Consequential amendments have been made throughout the Handbook as a result of the revocation of the PRIIPs-based framework and its replacement with rules and guidance, including in DISC, relating to consumer composite investments. 

DISC TP 2.11R preserves the effect of those rules and that guidance as they were before those amendments were made for a disclosure document with the same content as a key information document, a key investor information document or an EEA key investor information document. 

The effects of those glossary terms used in these transitional provisions are also preserved for the purposes of these provisions.