On Wednesday, a press release revealed that 42% of UK investors – those between the ages 18 and 24 – do not do their research prior to investing. The poll also showed that these traders tended to invest as whilst in the middle of another, leisure, activity. The research further detailed that 37% of UK adults hold steady investments ranging from £100 and £50 000. Meanwhile, 44% wished they had done more research prior to investing.
Concerns surrounding these numbers have been raised by both the FCA and the Financial Services Compensation Scheme (FSCS). As Lila Pleban commented,
“With almost two in five adults holding investments in the UK, it’s clear there’s a growing appetite to start investing… but…carving out time to research and look into investment opportunities is not always top of people’s to-do lists and unfortunately, puts them at a higher risk of being scammed or putting their money with an unprotected platform”
The survey results disclosed that 22% did not even check if they are FSCS-protected, while more than 25% of all the surveyed prefer time-bound investing opportunities. All the research points to a large audience of investors that is at a higher risk than any other group of being defrauded.
Mark Steward, head of the FCA’s Enforcement team said that scammers will always find new channels through which to defraud consumers, so it’s crucial for these same consumers to do the necessary research. A few minutes of research can be detrimental to one’s capital.
The FCA continues to fight the good fight against scammers as an increasing number of UK traders are being targeted.