How Is The FCA Encouraging Individuals To Invest In The Stock Market

March 15, 2022

In 2020, it was found that a third of people in Britain said that they owned stocks and shares. In addition to this, a large number of additional people are looking into or thinking about buying stocks and shares in the future. This leaves the stock market with a large number of people who could potentially become active under encouragement. The following information explains the main two ways in which this demographic are being encouraged by key players to make plans of future investment a reality.

Online Trading And Investment Apps

The increased accessibility of online trading and investment apps make it a lot easier for people to engage with stocks and shares. This democratisation of the market through utilising new technology has opened it up to a considerable amount of people who would not otherwise be engaging in such activities.

Easy to navigate interfaces that offer an increased amount of support to their users are crucial in making sure that people begin making sustainable investments that are right for them. Such investments will mean that these people are more likely to continue in the future, therefore not only making the practice sustainable for themselves but also the companies in which they are investing.

Actions Of The Financial Conduct Authority

The FCA has invested £11 million into their ‘investment harm campaign’. This aims to reduce the number of people who are making high-risk investments that do not offer worthy benefits should the investment pay off. It is critical that people feel confident when they are investing in stocks and shares, and this move by the FCA aims to increase this feeling.

In 2020/2021 it was estimated that customers within the market lost nearly £570 million as a result of investment fraud. New measures taken by the FCA aim to bring this figure down considerably in the near future which will only increase the levels of trust people have in the market.

These actions taken by key players in the stock market are set to increase the amount of engagement from target demographics. Upon being successful, this will contribute to a positive environment where investors and companies can both practice constructive and beneficiary exchanges.