On Tuesday 15th September, the FCA launched a Call for input on the consumer investment market, stating:
“We have made significant improvements to this market to protect consumers. But there are over 5,000 financial advisor firms and more than 27,000 individual advisors. These chains of intermediation make it easy for bad actors to ‘hide’ and challenging for us to oversee.
Demographic and economic changes also mean more people are living longer and are personally responsible for making complex investment decisions. The nature of long-term savings means that, when things go wrong, it’s often too late to put them right. This is why we identified reducing harm in this market as a priority in our 2020/21 Business Plan.”
The FCA wants views to help them strike the right balance between consumer protection and consumer choice. The closing date for input is 15 December 2020.
The Call for input is focused on the following core questions:
- What more can we do to help the market offer a range of products and services that meet straightforward investment needs?
- How can we better ensure that those who have the financial resources to accept higher investment risk can do so if they choose, but in a way that ensures they understand the risk they are taking?
- How can we make it easier for people to understand the risks of investment and the level of regulatory protection afforded to them when they invest?
- What more can we do to ensure that when people lose money because of an act or omission of a regulated firm, they are appropriately compensated and that it is paid for fairly by those who cause the loss?
- How can people be better protected from scams?
- What more can we do to facilitate effective competition and encourage firms to develop innovative products and services which help consumers to invest?