FCA’s £11m campaign reduces investments in high-risk assets
The FCA is planning for 2021/22 to enable consumers to make “effective investment decisions.”
“We want to see a consumer investment market where consumers can confidently invest.
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“We don’t want to limit consumers if they want to invest, but we want to be able to access and identify investments tailored to the situation and attitude towards risk.”
8.6 million people have over £10,000 in their investmentable assets, and the FCA wants to cut this by 20%.
The FCA’s £11m campaign will reduce the number of investments in high-risk assets.
This could amount to £9.8 billion of additional returns on the Saver.
Long-term social and economic changes have made the consumer investment market more important than ever.
“Consumers are increasingly responsible for making complex decisions about their economic future, such as whether they are investing,” says the FCA.
Laura Suter, AJ Bell’s personal finance director, commented on the FCA’s investment market plan.
“Regulators are taking two broad approaches, while leaving money to more people with cash or trying to protect inexperienced investors to others from risky investments. That’s what I’m saying.”
“The FCA’s plan is to get an additional 2 million investments, as it is currently shown that 8.6 million people have more than £10,000 in cash, making it 20%. We want to cut. If 1.7 million people invest £10,000 in the stock market, that represents a £17 billion inflow of money into the investment market,” Suter said.
“The pandemic has pushed up the savings pots for many people, but most of them are idling with current accounts that get a small return when in fact many of them could be invested. The problem is that many of these people feel they can’t start investing or are not equipped. Everything regulators can do to jump into the stock market for the first time, and providers can do more. We need to praise you for being able to provide your hand.”
