One in three of all investors fall into regulator’s definition of vulnerable
9 Aug, 2022
Press release
New research from Boring Money indicates that one in three of all investors fall into regulator’s definition of vulnerable.
One of the focusses of the recently released Consumer Duty Policy Statement is how investment firms look after and manage vulnerable customers. In further guidance, vulnerability is classified as those customers who need special consideration because of 1) health, 2) life events, 3) financial resilience and/or 4) capability (knowledge and confidence).
If we ask investors about physical, emotional and financial vulnerability, 1 in 5 of all investors today classify themselves as vulnerable
Thinking about confidence, a significant 27% of all investors say that their confidence about investing is 2 or less out of 10
The net total of investors today who report vulnerability on the regulator’s stated criteria is 34%
These vulnerable customers are more likely to be young, female and less well off. The median asset value for vulnerable investors is £38,000 compared to £100,000+ for non-vulnerable investors.
Boring Money CEO Holly Mackay comments, “Vulnerable is a powerful word and it’s easy to think of this as a small minority of investors, particularly as we know that investors are typically the most affluent segment of society. However, if we think about the full range of criteria, from physical and mental health, to impactful life events such as divorce or bereavement, as well as the double whammy of low financial resilience and confidence, it’s striking to see that one-third of all investors today self-classify as vulnerable by the regulator’s standards. With financial resilience set to come under pretty heavy fire from this Autumn, this percentage seems only likely to increase and it’s a real call to action for firms to truly understand their customer base, when creating and marketing investment products and services.”
Sample size: 20th and 21st July, survey with 4,500 UK adults (of whom 1,414 were investors).
Boring Money is helping advice firms, platforms and asset managers to plan how they will respond to this new policy and focus on creating better customer outcomes. With over 5 years’ experience in understanding and tabling the customer voice, we can help with data and insights on both consumers in general and your more specific customer base. For more information on the Consumer Duty policy, click here.
