The UK FCA plans to simplify retail investment rules, allowing high-net-worth individuals to choose higher-risk products

The UK's Financial Conduct Authority (FCA) has announced adjustments to retail investment rules to lower investment thresholds and encourage more UK residents to participate in the capital markets.

The policy includes: the abolition of complex information documents, with investment firms no longer required to provide retail investors with "Key Information Documents (KID)", replaced by a simpler "Product Summary". Wealthy individuals can voluntarily opt out of retail protections; individuals with assets of £10 million or those with investment experience can choose to be treated as professional investors, allowing them to invest in higher-risk products but no longer bound by FCA consumer protection obligations. Retail investment in the market is encouraged, as UK household investment rates are lower than in other countries. The government is promoting residents to invest more savings into the market, including the recent reduction of the ISA annual tax-free allowance to £12,000.