Updated: Oct 3, 2021
The FCA has recently published a new consumer investment strategy aimed at giving consumers more confidence to invest, whilst supported by high quality advice.
In addition, the regulator plans to halve the number of consumers who are investing in higher risk products that are not suitable to their needs.
FCA executive director markets Sarah Pritchard said:
“We want to give consumers greater confidence to invest and to help them do so safely, understanding the level of risk. We also want to be able to adapt more rapidly to the changing market and be assertive where we see poor conduct and consumer harm.”
To support this strategy the FCA has set out a package of measures to achieve the following outcomes by 2025:
· Reduce by 20% the number of consumers who could benefit from investment earnings but are currently missing out.
· Halve the number of consumers who are investing in higher risk products that are not aligned to their needs.
· Reduce the money consumers lose to investment scams perpetrated or facilitated by regulated firms.
· Stabilise the £833m compensation bill for the Financial Services Compensation Scheme, and target a year-on-year reduction in the Life Distribution and Investment Intermediation (LDII) funding classes from 2025 to 2030.
The FCA will publish metrics to assess whether these outcomes are being met.
Alongside this strategy, the regulator have also published a Consumer Investments Data Review on their work to tackle harm in the market over the last year.
Read the full FCA press release here: https://www.fca.org.uk/news/press-releases/fca-sets-out-plan-tackle-investment-harm