Posted on: September 13th, 2023
July 2023 saw the publication of the FCA’s 2022 Financial Lives Survey, which I have ‘cherry picked’ some key numbers from, but would recommend you read via the links provided 🙂
The document that focuses on consumer responses to ESG and responsible investment questions and trends is the following PowerPoint presentation:
https://www.fca.org.uk/publication/financial-lives/fls-2022-consumer-investments-financial-advice.pdf – the relevant information starts on slide 42 .
Some of the key stats highlighting general interest are:
The research also indicates that awareness of responsible investment is growing:
And that this is also a growing opportunity – in other words we there is work to be done if we are to meet clients personal preferences better (the stats are pretty consistent across different age groups and other segments).
Research also indicated that (unsurprisingly) those most likely to have invested in responsible investment already are people with higher levels of money to invest:
This section went on to add that – only a minority of respondents agreed they ‘might’ (very or somewhat) be prepared to pay more (36%) or accept higher risk (37%) to invest responsibly – although that number rose very significantly – to only ‘14% NOT willing to pay more’ – when presented with a real life example. This points, to the benefit of not only client’s seeking advice, but also making sure people understand what funds of this kind are really about… although the subsequent slide indicated that we remain some way from achieving that as people continue to find it difficult to decide which funds were and were not ‘responsible’. (My hope is that the SDR will help move that one in the right direction!!)
Importantly this is supported by ONS research carried out in September/October in 2022 also, which also indicates high interest in the issues underpinning sustainable investment:
Further FCA information is available via the following links: