FS26/3: Expanding consumer access to investments: Feedback to DP25/3

Read FS26/3 (PDF)[2]

Why we asked for feedback

The retail investment market has changed significantly. Consumers now have access to a wider range of investments, through more varied ownership models and with greater ease than ever before. AI also has a growing role.

Investing involves some level of risk, and we want consumers to be able to make informed choices about the risks they are willing to take and the potential rewards. In our discussion paper DP25/3 (PDF)[3], we asked for views on how we can help more people to invest with confidence, while keeping the right protections in place.

Who this is for

This feedback statement will primarily interest:

• Consumers and consumer organisations.
• Industry bodies.
• Firms that operate retail investing and trading platforms.
• Firms that advise on or sell:
  • Fractional investments.
  • Speculative products including: contracts for difference, leveraged exchange traded products, margin lending, structured products, Horizon contracts.
  • Peer-to-peer loans.
  • Qualifying cryptoassets.

Next steps

We are taking the next step in our work to help more people invest with confidence, expanding access without weakening protections for higher-risk products. The next phase is about supporting investing in practice, not just in principle.

We want more people who can afford to invest to be able to do so in a way that helps them plan for the future. We do not intend to take forward every potential reform at once.

We will prioritise areas where we think we can make the greatest difference to consumers while giving firms and the market time to engage with and prepare for change. 

Our next steps include:

• High risk investments: We will review our financial promotion rules for high-risk investments and if these rules treat products with similar risks in a consistent way.
• Risk information: We plan to consult in early 2027 on changes to our rules and guidance on risk information for mainstream investments.
• Appropriateness assessment: We will review how the assessment works in practice, the impact of the current model and the merits of alternatives, with planned stakeholder engagement in 2027.
• Model portfolio services: We have begun our multi-firm review examining how firms manufacturing these services deliver good consumer outcomes. We expect to publish findings by the first quarter of 2027.

Background

A stronger investment culture matters for consumers, firms and the wider UK economy. When consumers have the confidence, support and information they need to make investments, they are better able to plan for their future and benefit from investment returns.

Our role is to make sure the regulatory framework helps consumers take those decisions with confidence.