The financial management body, the Financial Conduct Authority (FCA), published a new strategy to combat investment fraud. Moreover, it plans various steps to boost the usage of regulated financial instruments in investment. The plan is to scale down the non-risk-averse people investing in financial products.
Under the recently launched plan, the FCA aims to split the number of consumers investing in high-risk products by the year 2025. In addition, the regulator will publish the results of the new plan in a short time.
In the coming years, the FCA will undertake adequate procedures to identify and avoid fraud in investment. UK investors lost almost £570 million to investment fraud in the period 2020-21. The number of asset scam cases in the UK has boomed since 2018.
To achieve the stated goals, the FCA has defined a package of measures, including the launch of a new £11 million campaign to ensure that consumers make investment decisions wisely and prevent them from being involved in inappropriate, high-risk investments.
Reflecting on the latest statement, FCA’s Executive Director of Markets, Sarah Pritchard expressed:
“Investors have never had more freedom: technology has democratized the market, new products have become available, and people have better access to their life savings than before. But that freedom comes with risk. We want to give consumers greater confidence to invest and to help them do so safely, understanding the level of risk.”
The report published by the Australian Competition and Consumer Commission (ACCC) in August 2021, comments on the boom in investment scams in the country. And it addresses the loss equal to $70 million during the first 2 quarters of 2021 only by the Australians to the programs of unauthorized investment.
Strategy of FCA
Aside from reducing fraud in investment, FCA plans to boost investment in legal and more simple financial products.
Share this article
‘’The package of measures we have announced today are intended to support the idea that we want people to have greater confidence to invest. We also want to be able to adapt more rapidly to the changing market and be assertive where we see poor conduct and consumer harm.”