HM Treasury has been meeting with the Financial Conduct Authority over elements of PRIIPs, the EU's packaged retail and insurance-based investment product regulation.
At the end of March the FCA confirmed changes to PRIIPs, which included divergences from the EU regulation. One such change was the removal of performance scenarios in a Key Information Document, to be replaced by a "narrative description of disclosure".
At the time of the announcement, the FCA also noted that HM Treasury were "committed to carrying out a review of retail disclosure in the future" and said they would "work closely with them as this develops".
Following the announcement, the Association of Investment Companies called on the Treasury to "make good on its promise" and conduct a full review of the consumer disclosure regime.
Investment Week understand HM Treasury are saying the review will take time and it would not be appropriate to pre-judge the outcome. They are also noting the government fast-tracked urgent reforms by giving the FCA new powers.
The FCA declined to comment.
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Last week, the Treasury made clear that it wanted to reform the UK financial sector post-Brexit, with the announcement of the Financial Services and Market Bill during the Queen's Speech (10 May).
The bill "delivers on the ambitious vision" for the financial services sector set out by the Chancellor last year, according to a HM Treasury release.
The release stated that the bill would "make the most of the opportunities of Brexit" and revoke EU law on financial services, replacing it with an "approach to regulation that was designed for the UK".
It will also update the objectives of the regulators to "ensure a greater focus on growth and international competitiveness".
