Investment trusts can choose to opt out of the requirements of PRIIPs Regulation and associated technical standards until new legislation comes into force, the FCA said in a statement today.

They may also choose to opt out of the requirements of Article 50(2)(b) and Article 51 of the MiFID Org Regulation.

The packaged retail and insurance-based investment products (PRIIPs) regime was an EU directive adopted by the FCA as part of a swathe of retail investment regulation.

It has, however, been criticised for using generic illustration figures and for lacking clarity.

The FCA statement confirms that it will not take supervisory or enforcement action if a fund chooses not to follow those requirements.

The regulator had previously “issued forbearance” in November to give investment trusts greater ability to explain their costs and charges to consumers.

The FCA said that the approach was intended as an interim measure as investment trusts will be included within the cope of the future UK retail disclosure framework.

The regulator noted that investment trusts must still continue to comply with other relevant rules and regulations.

The FCA is currently working on a new post-Brexit PRIIPs regime to improve retail asset management regulation. It intends to consult on its proposed replacement for PRIIPs this autumn, with the rules to be finalised in the first half of next year.

In today’s statement the FCA said the Treasury has confirmed that it will “lay legislation as soon as possible to provide the FCA with the appropriate powers” to deliver the new rules.

The regulator added that the new CII regime will deliver more tailored and flexible rules which will address concerns across the industry around currently disclosure requirements, including costs.

Investment trusts are a well-established investment vehicle in the UK representing over 30% of the FTSE 250 and investing in over £260bn in assets in total.