Most Brits invest without seeking regulated advice
Almost two thirds (64 per cent) of UK adults who have financial products have not sought regulated advice in the last five years.
According to new research from the Financial Services Compensation Scheme (FSCS), 55 per cent of Brits believe that paying for financial advice is for the wealthy, while 58 per cent said that it should be easy to invest without needing professional financial advice.
Young investors, aged between 18 and 34, were more likely to agree that they should be able to invest without professional advice.
60 per cent of millennials and 57 per cent of Gen-Z investors said that they are able to find good financial advice online. Meanwhile, 44 per cent of Gen-Z believe they can source good financial advice on social media.
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Caroline Rainbird, chief executive of the FSCS, warned that the financial ‘advice gap’ is a concern, as scammers will prey on peoples’ fears and exploit any gaps in their financial knowledge, putting them at greater risk of making poor decisions about their money.
“Our latest research shows that consumers are looking for easy ways to invest, whilst also getting the right support,” Rainbird added.
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“At FSCS we see the impact of poor advice every day. It results in millions of pounds each year disappearing from consumers’ pockets.
“We can only offer protection on financial products and services that are regulated, and we encourage consumers to check if they are likely to have access to FSCS protection if something goes wrong.
“It is important for people to be fully aware and confident about the decisions they are making with their money and the risks that come with taking guidance from unauthorised sources.”
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