DISC 2A.3 Distribution and promotion of consumer composite investments

1. (1) A firm must not distribute a consumer composite investment to a retail investor unless the conditions in (2) are met.
2. (2) The conditions are that the firm must:
   1. (a) ensure that an up-to-date product summary for the consumer composite investment is available;
   2. (b) make the product summary available to the retail investor at an appropriate stage in the provision of the service or carrying on of the distribution activities;
   3. (c) take reasonable steps to promote engagement by the retail investor with the following information about the consumer composite investment, whether it is provided via the product summary or via any additional product communication:
      1. (i) its characteristics, reflecting the information disclosed under DISC 4.1.1R(5) and DISC 4.1.1R(9), as applicable;
      2. (ii) its ongoing costs figure, one-off entry costs figure and one-off exit costs figure, as applicable;
      3. (iii) applicable performance fees or carried interest, as per the information disclosed under DISC 6.3.6R;
      4. (iv) its risk and reward score and relevant material risks; and
      5. (v) any applicable warnings; and
   4. (d) provide the retail investor with a copy of the product summary in a durable medium at the time the sale is concluded or as soon as reasonably practicable afterwards and, in any case, before the retail investor is bound by any agreement to buy or otherwise invest in the consumer composite investment.

1. (1) The purpose of the steps required under DISC 2A.3.1R(2) is to help ensure the retail investor is equipped to make effective, timely and properly informed decisions about the merits of investing in the consumer composite investment, in keeping with firms' obligations under DISC 3.1.2R.
2. (2) In the FCA's view, the appropriate stage for making the product summary available to the retail investor will normally be early on in the investment journey and before the investor has initiated the transaction to buy or otherwise invest in the consumer composite investment, or provided instructions to the firm to arrange it for them.
3. (3) If it is not reasonably practicable to provide the retail investor with access to the product summary at an early stage in the investment journey, the firm should endeavour to provide it as soon as it is practicable.

1. (1) Where the conditions in (2) apply, the firm's obligations under DISC 2A.3.1R will be met by the firm if it complies with DISC 2A.3.1R(2)(d) and takes reasonable steps to encourage the retail investor to consider the information within the product summary before they are bound by the agreement to buy or otherwise invest in the consumer composite investment.
2. (2) The conditions are that:
   1. (a) the retail investor has approached the firm to buy or otherwise invest in the consumer composite investment or to give instructions for the firm to arrange a deal in the consumer composite investment for the retail investor to enter into as buyer; and
   2. (b) the firm has neither promoted the consumer composite investment to the retail investor nor advised the retail investor on the merits of investment in the consumer composite investment.

A firm is not required to comply with DISC 2A.3.1R where the consumer composite investment is distributed to or through a discretionary investment manager acting on behalf of a retail investor.

A firm may satisfy its obligations under DISC 2A.3.1R by providing the product summary to a person who is legally empowered (solely or jointly with others) to make investment decisions on behalf of the retail investor.

DISC 2A.3.1R does not apply where a distributor is acting on instructions of another distributor who is its client.

Where DISC 2A.3.6R applies, the responsibility is on the distributor with a direct relationship with the retail investor to ensure the retail investor is provided with a product summary in compliance with DISC 2A.3.1R.