The top UK financial markets watchdog has called for experts’ insights into how to best regulate the consumer investment market.
The Financial Conduct Authority (FCA) argued that consumers often receive lower returns than they should because of unsuitable products with high fees, motivating better regulations of the UK market that holds more than 5,000 advice firms and over 27,000 advisers.
In particularly, the FCA is looking for insights into what more the regulator can do to help the market offer a range of products that meet straightforward investment needs.
It is also hoping for insights into how to improve the ways in which those who have the financial resources to accept the risks of higher risk investments can do so if they wish, but in a way that ensures they understand the risk they are taking.
Looking at financial promotion, the FCA also called for insights into how to better convey the regulatory protections afforded to investors, how to protect people who lose money because of an act or omission of a regulated firm, prevent and protect against from scams, and still ensure that the market remains competitive.
“The consumer investment market is not working as well as it should,” said Christopher Woolard, interim chief executive at the FCA. “There have been too many scams and scandals and too often consumers are offered unsuitable products or advice. As a result, many consumers lack confidence in the investment market.
“This call for input is aiming to help shape the future of consumer investments, including regulation, to ensure consumers can have faith in the market. We’ll be considering all contributions carefully as we open this debate on the future of the consumer investment market.”
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