On 8 December 2023, the FCA published ‘Preparing for the future of Consumer Investments’.
This document sets out some of the common aims of the FCA’s forthcoming consumer investments policy initiatives. It aims to outline the direction of travel so that stakeholders can understand the FCA’s strategy.
The document discusses five initiatives that it wants to see in the consumer investments sector:
- Accessible support for consumers, at an affordable cost.
- Diverse products and services to meet different consumer risk appetites. The FCA wants a market where consumers have access to a broad range of investments across the spectrum of risk. It also wants to ensure proportionate protections help consumers find products that are right for their circumstances and risk tolerance. The FCA wants consumers’ needs to be met by regulated firms, minimising the influence of unregulated providers that don’t offer adequate consumer protection.
- Realistic approach to risk. Regulation should support consumers to distinguish between legitimate investment risk and fraudulent products. At times consumers will need additional protection. The FCA is committed to building a regulatory framework that looks at the range of factors influencing investment risk.
- Useful information, consumers should have access to information to help them make good decisions.
- Appropriate protections, there needs to be an appropriate and proportionate framework in place to put things right where things go wrong.
The FCA has also published the following new webpages:
- Consumer Investments data review April 2022 – March 2023 | FCA. The FCA summarises its work to tackle consumer harm in the investment market between 1 April 2022 and 31 March 2023.
- Consumer Investments Strategy – 2 Year Update | FCA. The FCA provides an update on its progress against the workstreams and outcomes it committed to in its Consumer Investments Strategy in September 2021.