On 15 September 2021, the Financial Conduct Authority (FCA) published a new strategy which is designed to ensure UK consumers can invest with confidence by understanding the risks they are taking and what the regulatory protections apply (Strategy).
Whilst the FCA note that it does not restrict consumer choice, the Strategy does propose a number of measures which aim to allow consumers to access and identify investments that suit their investment objectives and their access to risk.
In the Strategy, the FCA identifies a number of areas of significant consumer harm:
- Consumers are losing significant sums of money to investment fraud and scams. 23,378 consumers reported they lost an estimated GBP569 million to investment fraud from April 2020 to March 2021 – an almost threefold increase since 2018.
- Consumers are looking for help in avoiding scams or dealing with their consequences. The number of calls the FCA has received from consumers…