FCA publishes consumer investments strategy and feedback statement

By Zhuan Faraj

On 15 September 2021, the FCA published a Strategy and Feedback Statement on consumer investments. The statement considers consumer harm in the context of mainstream investments, higher risk investments, scams and fraud, and the redress system.

Key measures arising from the statement include the following:

• Mainstream investments – The FCA will explore regulatory changes to make it easier for firms to provide more help to consumers who want to invest in relatively straightforward products.
• Scams – The package of measures includes being more assertive and agile in how the FCA detects, disrupts, and takes action against scammers, thereby reducing investment scams.
• Appointed Representatives – The FCA plans to increase supervision activity to reduce the risk posed by Appointed Representatives. It also proposes to consult on changes to its rules to clarify expectations of Principals and ensure it can more effectively challenge Principals on their ability to oversee the activities of Appointed Representatives.
• Strengthening the financial promotions regime – The FCA will use feedback from its Discussion Paper published 29 April 2021 to consult on new rules later in the year.

 For further information the full statement can be found here.