Financial policymakers are planning sweeping changes to retail investment disclosure requirements in the UK, replacing regulation inherited from the European Union with more flexible rules they hope will help invigorate Britain's capital markets.

The UK finance ministry and the Financial Conduct Authority (FCA) on Thursday unveiled plans for a new regime known as Consumer Composite Investments (CCIs) to address industry concerns about disclosures, particularly on the issue of costs.

Legislation to replace the EU-inherited Packaged Retail and Insurance-based Investment Products (PRIIPs) regulation with the new framework would be laid as soon as possible, the government said, with the new rules expected to be in place next year.

"Ensuring retail investors can make informed investment decisions is an important part of ensuring healthy capital markets," the FCA said in a statement, with consultation on proposed rules due this autumn.

"As part of this, the Government and FCA are committed to replacing EU-inherited consumer cost disclosure regulation with a new framework tailored to UK markets and firms," it added.

The FCA said CCIs will help investors "better understand what they are paying for" across a variety of products and investment vehicles, including investment trusts, which have been hit hard by the current EU disclosure rules.

"We believe this decision rightly reflects the government's stated aim of making the UK an attractive place to invest," Christian Pittard, Head of Closed-End Funds at abrdn said in a statement.

Investment trusts represent more than 30% of the FTSE 250 market and manage more than 260 billion pounds in assets in total.

(Reporting by Muvija M and Sinead Cruise; Writing by Catarina Demony; Editing by Kate Holton, William Maclean)