Investment - Articles - FCA targeted support could help tackle investment scams

Erin Sims, financial services senior analyst at RSM UK said: “Targeted support could bring a boost to the government’s growth agenda following changes to cash ISAs announced in the Autumn Budget. It’s also an opportunity for advisors to help bridge the advice gap. If people can access advice more easily, they can make their money work harder and feel confident to invest, rather than rely on savings accounts which may not give the best returns.

 

“Many novice or first-time investors are currently using sources like AI chatbots and social media for investment advice. While digital tools can help, they’re no substitute for regulated advice, and could even push people towards potentially fraudulent investments and scams. Opening the doors to more people to access affordable advice will help support risk averse investors, while also reducing the risk of them falling foul to scammers. FCA data shows 800,000 people lost money to investment fraud in the year to May 2024, and targeted support, coupled with the new ‘Firm Checker’ tool launched this week, could go a long way to addressing the problem.

 

“The joint statement from the FCA and FOS on how complaints will be handled has helped provide some clarity for advisors, who will have been understandably cautious, particularly given the FOS estimates last month of receiving 1500 extra complaints due to targeted support.

 

“With the pensions dashboards launching next year, people will soon be able to develop a better understanding of what’s in their retirement pot, also prompting more people to seek accessible, affordable professional advice.”