19 February

We have published a Consultation Paper on the subject of simplifying disclosure. This consultation seeks views on our proposal to introduce into guidance a new disclosure document to replace the existing IDD and Menu. We encourage all firms to read the CP and provide us with your views by 19 May 2008.

The IDD and Menu aimed to address certain market failures but our research suggests that there is scope to improve their design. We are therefore proposing a new single disclosure document, the 'Services and Costs Disclosure Document', to replace the IDD and Menu, which is less prescriptive and allows for more free text. This proposal fits with our move away from prescriptive requirements to a more principles based approach as has also been the case in our reform of the Conduct of Business Sourcebook (COBS).

We also propose to update the Combined Initial Disclosure Document (CIDD) in order to have consistency between our proposed services and costs disclosure document and the investments section of the CIDD. To help firms we will provide templates (including an updated CIDD template) and update the 'build your own' tool on the website. However, as this is guidance, firms have the flexibility to develop their own disclosure material if they wish.

Subject to the consultation's findings, the new guidance will be incorporated into COBS and take effect from 6 August 2008. There will, however, be a transition period until 31 August 2009 for firms who wish to continue to use the IDD and Menu until then.

CP08/3: Simplifying Disclosure: Information about services and costs