Summary
Starting in April, banks and financial firms in the UK will begin offering investment recommendations to people based on common financial profiles. This is part of a new plan from the UK’s financial regulator to help more people make better financial decisions without needing costly individual advice.
Key Facts
- The UK financial regulator is allowing banks to offer investment advice based on group profiles.
- This service aims to help people who currently seek financial advice from friends or social media.
- Nearly 20% of people in a survey rely on family and friends for financial advice.
- Many people in the UK have little to no savings, but about seven million have over £10,000 and could benefit from investing.
- The new advice plan is not the same as personalized financial advice, which requires a fee.
- Only 9% of people received regulated financial advice in the 12 months to May 2024.
- There are concerns that the new rules must not lead to companies taking advantage of customers.
- The government has set a goal to encourage more investments to boost economic growth.
