Social media and the younger investor
13/08/2021
13/08/2021
The Financial Conduct Authority (FCA) is concerned about the influence social media is having on younger investors, who it believes are taking on significant financial risks.
This younger, more diverse group of investors, it said, is highly reliant on social media platforms such as YouTube, Instagram and TikTok for investment tips and advice, but lacks the knowledge and understanding required to make informed choices.
The FCA expressed concerns that these investors are putting their money into riskier products, despite a ‘striking’ lack of awareness of the hazards associated with investing. Shockingly, 45% did not associate ‘losing some money’ as a potential risk. They also showed low levels of financial
resilience, with research showing that a significant loss could have a fundamental impact on the lifestyles of 59% of inexperienced investors.
A ‘digital disruption’ campaign has been launched by the FCA to make investors aware of the risks, by encouraging them to ask five questions:
Don’t risk jeopardising your financial future. We can help develop an investment plan suited to your long-term goals and risk profile.
This article has been provided by Simplybiz. It is important to take professional advice before making any decision relating to your personal finances. Information within this newsletter is based on our current understanding of taxation and can be subject to change in future. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. If you withdraw from an investment in the early years, you may not get back the full amount you invested.
Lloyd & Whyte (Financial Services) Ltd are authorised and regulated by the Financial Conduct Authority. Lloyd & Whyte Ltd is registered in England No. 03686765. Lloyd & Whyte (Financial Services) Ltd is registered in England No. 02092560. Registered Office: Affinity House, Bindon Road, Taunton, Somerset, TA2 6AA. Calls may be recorded for use in quality management, training and customer support.