FCA sets out plan to tackle investment harm

15 Sep 2021 09:58 AM

The consumer investments market accounts for £1.6 trillion held or invested by consumers through the services of over 6,000 wealth managers, advisors and investment platforms. While most of this market meets consumers’ needs, there are some areas where harm is occurring.

The FCA has published a new strategy aimed at giving consumers the confidence to invest, supported by a high-quality, affordable advice market, which should lead to fewer people being scammed or persuaded to invest in products too risky for their needs. The FCA will publish metrics to assess whether these outcomes are being met.  

By 2025, the FCA will:

To achieve this, the FCA has set out a package of measures including:

Sarah Pritchard, Executive Director of Markets at the FCA, said:

'Investors have never had more freedom - technology has democratised the market, new products have become available, and people have better access to their life savings than before. But that freedom comes with risk. We want to give consumers greater confidence to invest and to help them do so safely, understanding the level of risk. The package of measures we have announced today are intended to support that – we want people to have greater confidence to invest. 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.'

The FCA has already taken action to improve the market, for example by banning the mass-marketing of speculative mini-bonds and by being more assertive through its ongoing work to stop and disrupt firms and activities causing harm.

The FCA’s Consumer Investments Data Review, published alongside the strategy, shows that between 1 April 2020 and 31 March 2021, the FCA’s work to tackle harm, included: 

The FCA has set out the focus of its role and the changes that will be made to meet current and future challenges in its Business Plan 2021/22. In early 2022, the FCA will publish wholesale and retail strategies to set out the ambitions for these markets. 

Notes to editors

  1. Consumer investments: strategy and feedback statement
  2. The strategy has been informed by responses to the FCA’s Call for Input on the Consumer Investments Market
  3. Consumer investments data review 2021
  4. Consumer investments data review 2020