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How the CCI risk and return score (1 to 10) is calculated

Every CCI product summary shows a risk and return score from 1 to 10. For most funds it comes from the volatility of 10 years of weekly returns, placed in one of ten bands set by the FCA, then checked and adjusted for risks that volatility misses. This guide explains each step under DISC 5 of the FCA Handbook.

Last reviewed 30 October 2026 · About 6 minutes to read

Please note: this guide summarises the rules as we understand them at the date of review. It is general information, not legal or regulatory advice. Always check the current rules and take professional advice before relying on it. See our Terms and Disclaimer.

1. Which method applies

2. Step 1: measure volatility

• Prices: weekly prices, or monthly where weekly prices are not reasonably obtainable. Actual performance, simulated performance from the underlying assets, or an appropriate benchmark may be used.
• Period: 10 consecutive years, ending no earlier than 60 days before the summary is prepared or reviewed.
• Short histories: the missing years are simulated, or a benchmark is used if simulation is not reasonably possible.
• Consistency: the pricing basis and simulation approach stay the same across the period, adjusted for fund inflows and outflows and for any smoothing.
• Calculation: annualised volatility from non-overlapping returns: 520 weekly or 120 monthly returns over the 10 years.

3. Step 2: place it in a band

The bands are set in DISC 5.4.1R. A fund whose volatility sits close to a band edge can move up or down a score from one review to the next.

4. Products with a pre-set score

• At least 9: contracts for difference, contingent convertibles, derivatives, VCT shares, EIS investments, products whose volatility track record (the price history used under DISC 5.2 or 5.3, including any simulated years) is shorter than 5 years, and products where leverage significantly increases risk, investors could lose more than they invest, or pricing is less frequent than monthly.
• 1: structured deposits.

Lowering a pre-set score is not normally appropriate.

5. Step 3: adjust the score

The final score is a whole number. The calculation and any adjustment must be kept for at least 5 years (DISC 5.6.8R).

6. A worked example

An illustrative global equity fund, not a real product:

1. Prices: 520 weekly total-return NAVs over 10 years.
2. Volatility: annualised volatility of 14.2%.
3. Band: 12% to below 16%, so an initial score of 6.
4. Checks: daily dealing, liquid holdings, no leverage, no losses beyond the amount invested. No adjustment, so the final score is 6.

If the same fund held mainly small, hard-to-sell companies and met the low-liquidity test, its score would rise to 7.

7. How the score is shown

The score appears in the product summary on a horizontal scale from 1 to 10, with a short explanation of what drives it, its limits, and that a score of 1 does not mean risk-free. Material risks, such as currency, credit or counterparty risk, are described in words alongside it. UK factsheets for the same fund should show the same score once the fund switches.

8. Common questions

Is the CCI risk score the same as the PRIIPs SRI or the UCITS SRRI?

No. The KIID and KID use a 1 to 7 scale; the CCI score runs from 1 to 10 with different volatility bands, and the KID's credit-risk element is replaced by the material-risk narrative. A fund's score cannot simply be converted from its current SRRI or SRI.

What if a fund has less than 10 years of prices?

The missing years are simulated from the fund's underlying assets or reference index. Only where simulation is not reasonably possible may an appropriate benchmark be used. If, even with simulation, the volatility track record is shorter than 5 years, the product is given a score of at least 9.

Can the manufacturer change the score?

Yes, within limits. The manufacturer must check that the score fairly reflects the product's risk and may raise it, or lower it cautiously with a documented reason. The calculation and any adjustment must be kept for at least 5 years.

How often is the score recalculated?

Whenever the product summary is reviewed: at least once a year, and after any material change. The 10-year period must end no earlier than 60 days before the summary is prepared or reviewed.

Related

Sources

• FCA Handbook DISC 5: Risk and return information
• FCA Handbook DISC 5.6: Adjusting the initial risk and return score
• FCA PS25/20: final rules for Consumer Composite Investments (PDF)

Important information

This guide has been prepared with care and is believed to be accurate as at 30 October 2026, but it is a general summary only and may not be complete. It is not legal, regulatory or compliance advice and must not be relied on as such. Rules and regulators' interpretations change, and we do not undertake to keep this guide up to date. Before relying on any point, check the current rules and take appropriate professional advice. To the extent permitted by law, autoFactsheet accepts no liability for any loss arising from reliance on this guide; see our Terms and Disclaimer. If you spot something that is out of date, please let us know at info@autofactsheet.com.