FCA unveils new strategy to confront investment fraud

Answering concerns raised regarding poor guidance and unsuitable assets, along with investment-related scams and fraud, the United Kingdom’s Financial Conduct Authority (FCA) is now planning to adopt a new three-year strategy to combat a wide range of issues within the current retail investment industry.

Over a three-year period, the financial regulator will launch a variety of built-for-purpose initiatives designed to enhance investors’ results within several different areas. According to the FCA, it plans to achieve this goal by:

“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.”

As part of its new strategy, the regulator has set a goal to reduce the number of investors involved with unsuitable and risky investment products by 50 per cent by 2025. It will also cut the number of investors currently stuck on the side lines of investing by 20 per cent. Figures supplied by the FCA indicate that 8.6 million UK investors currently hold investable cash assets worth up to £10,000.

The regulator also plans to review the investor compensation infrastructure presently in place to make sure it remains both appropriate and proportionate.

UK consumers unsure of investment opportunities can gain strong support and financial advice in Chester, Birmingham and other UK cities from wealth managers. Able to provide an expert eye on potential assets, wealth management companies can explain risks associated with different types of investments.

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