Inclusive Investing: Key Reflections and Takeaways

After attending the TISA conference on inclusive investing this week, one theme stood out to us: the UK may be at a turning point in how retail investment is understood, communicated and regulated. The conversation was not about product innovation; it was about people and the behavioural, cultural and structural barriers that shape financial decisions.

The scale of the challenge

Several data points highlighted the size of the issue:

• 12.4 million people experience an “advice gap”;
• 39% of UK adults are not saving enough for even a minimum lifestyle in retirement;
• more than half of those with over £10,000 in cash have never considered investing;
• in 2022, 70% of people surveyed had never contemplated opening a Stocks & Shares ISA; and
• the gender pensions gap remains above 30% (amounting to the average woman receiving £5,000 less in retirement income annually).

Behind these figures sit familiar behavioural themes, namely anxiety, loss aversion, short‑term bias, shame about “not knowing enough”, and a distrust of financial services. For many, investing still feels like “a different language”.

Is communication a barrier or an opportunity?

One of the most striking threads was the role of communication. We heard that:

• investors want clarity and context, not less information;
• risk presented in isolation leads to an overestimation of downside;
• contextualised warnings increased investment take‑up by 10% (rising to 14% with illustrations); and
• one firm saw a 23% reduction in drop‑off during client onboarding after it redesigned its disclosures to include more balanced language.

There is growing recognition that warnings without balance or context can unintentionally create worry rather than understanding. The question is not whether to disclose risk, but how. 

This aligns with the direction of travel under the new Consumer Composite Investments (“CCI”) regime, which encourages firms to innovate responsibly in how information (including performance and benchmarks) is presented. For funds lawyers and product manufacturers, this goes directly to how disclosure is structured and delivered.

Another element of consumer communication concerned the presentation of data. Studies by TISA found that consumers prefer information to be available in multiple formats, such as visual charts, numbers, and a brief accompanying narrative. 

Starting earlier and building trust

Another consistent message was timing. Many individuals feel overwhelmed long before they reach product comparison, such as students navigating debt, people entering parental leave, those dealing with inheritance, or widows and widowers managing finances while grieving (with around 70% of widows switching adviser after their spouse’s death).

Often the barrier is not the product but the feeling of “where do I even start?”. Early, accessible education and clear language build confidence, and trust, once established, supports better long‑term outcomes. For firms, taking time to educate consumers on how to prepare for investing (for example, by building up an emergency fund or paying off consumer debt) may mean delaying a sale in the short-term, but can ultimately create a loyal, long-term customer base. 

Representation matters too. For many people, investing still feels like something “for someone else”. Normalising investing means making it culturally accessible, whether by adapting industry jargon or using real-life examples that consumers can recognise and relate to. In this context, legitimate financial content creators may have an important role to play. 

The regulatory lens

The FCA’s contribution to the conference made it clear that inclusive investing is not just an industry aspiration. Priorities include:

• clear, jargon‑free communication;
• stronger governance and accountability;
• better support for vulnerable customers;
• balanced risk and reward explanations; and
• progress on Targeted Support to bridge the guidance/advice gap.

The message was that the regulator and industry are mutually aligned in wanting to improve consumer engagement. For firms serving retail investors, this reinforces the need for strong governance around communications, customer journeys and client classification.

A broader understanding of vulnerability

Vulnerability was a recurring theme and not only relative to life events or health, but also to low financial literacy, numeracy challenges, choice paralysis and the fear of getting it wrong. As explored in our previous post on vulnerable customers and financial communications, consumers often make decisions in “fast‑thinking” mode, while disclosures assume slow, analytical engagement. Bridging this gap requires more than simplification, it requires recognising how real people process information in real contexts.

Are we seeing a cultural shift?

Comparisons with other jurisdictions, from Singapore’s compulsory savings to the US's approach to individual responsibility, prompted discussion about whether the UK is at a “once in a generation” moment. The Retail Investment Campaign, regulatory reform and experimentation in consumer communication all point in that direction. However, cultural change also requires consistency; reform fatigue and mixed messages can create friction of their own.

The retail investor at the centre

The strongest message was that attitudes of retail investors, behaviours and lived experiences, must sit at the centre of product design, policy and regulation. Clarity does not mean less information. Risk does not need to be hidden; it must be contextualised. Education must start early and trust must be earned.

For those of us advising on retail products, these themes are fundamental. Inclusive investing is not only about access but also about understanding. And that may prove the most important reform of all.

You can read more thought leadership like this by subscribing to our monthly financial services regulation update. If you would like to speak to one of our financial services experts, we would be happy to discuss this in more detail. 

Written by Sarah Logeswaran and Emily Williams