UK FCA discussion paper on expanding consumer access to investments

The UK Financial Conduct Authority (FCA) has published discussion paper DP25/3 as part of a set of publications forming a "landmark package to boost UK investment culture." The FCA is seeking views on how its regulatory framework can better support informed risk-taking and consumer confidence in retail investments. This work forms part of its wider five-year strategy to help consumers navigate their financial lives. The paper highlights persistent mismatches between consumers' risk appetite and actual investment choices, driven by low financial literacy and fear of scams, and explores interventions to rebalance risk. Key points for discussion are set out below.

This includes:

• Supporting continued innovation by firms in the retail investment market.
• Ensuring that for similar products, consumers have similar rights and protections.
• Shaping access to high-risk investments that require professional expertise, and ensuring retail consumers cannot easily access inappropriate investment opportunities.
• Regulating how firms communicate and promote to consumers to enable them to make informed decisions, including ensuring they can compare similar investments against each other.
• Introducing positive frictions to enable more considered decision making, such as its financial promotion rules and appropriateness testing.

The FCA highlights its ongoing work in this area, including finalising its consumer composite investments rules, consulting on changes to client categorisation rules, and continuing to streamline rules following the introduction of the consumer duty. The deadline for comments is 6 March 2026.

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