45% of new self-directed investors unaware that losing money is a risk of investing

FCA research

James Baxter-Derrington
clock • 1 min read
The research found that adding small amounts of friction to the online investment process, including FAQ disclosures about key investment risks, warnings and tick boxes helped investor comprehension of the risks involved.
Image:

The research found that adding small amounts of friction to the online investment process, including FAQ disclosures about key investment risks, warnings and tick boxes helped investor comprehension of the risks involved.

Almost half of new self-directed investors are not aware that losing money is a potential risk of investing, new research conducted for the Financial Conduct Authority has revealed.

Understanding self-directed investors, produced by BritainThinks for the FCA, found that 45% of self-directed investors, defined as those "who are making investment decisions on their own behalf…without a financial adviser", do not view "losing some money" as a potential risk of investing. FCA: Majority of crypto exchange applications 'withdrawn or refused' This "woeful knowledge" about the risks of investing is particularly worrying given the rise of highly volatile cryptoassets and increase in the cost of living, argued Susannah Streeter, senior investment and markets analyst at Har...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Trustpilot