The Financial Conduct Authority (FCA) has called for greater focus on investments after finding the majority of people with more than £10,000 held most of their investible assets as cash.

Its latest Financial Lives survey revealed that 61 per cent of people with more than £10,000 in investible assets held at least three-quarters of them in cash rather than investments.

This led to the FCA stating that even more affluent people could take steps to improve their long-term financial health, and it wanted more people to hold mainstream investments to increase long-term returns.

The survey also found that just 8.6 per cent of people received financial advice on investments, pensions, or retirement planning over the past 12 months.

While this was up from 8.3 per cent in the 2022 survey, the FCA said it was working to improve people’s access to help, guidance, and advice to make informed decisions about their financial future as part of a new strategy.

The FCA also wanted to ‘deepen’ people’s trust in itself as a regulator and in the financial services sector, with its survey revealing that only 39 per cent of adults had confidence in the financial services industry.

Just 36 per cent of survey respondents felt that most financial firms were honest and transparent in the way they treat them.

“Our data shows that finances are stretched for many - with some unable to save for a rainy day,” commented FCA executive director of consumers and competition, Sarah Pritchard.

“And we know that some do not have the confidence to invest. But there are improvements – more people with current accounts and less digital exclusion. Our strategy will build on this to help people better navigate their financial lives.”

Platforms Association chief executive, Keith Philips, argued that the FCA’s findings presented both a challenge and an opportunity for the investment platform sector.

“With the UK government’s key mission focusing on growth, unlocking investment plays a key role in making that goal a reality,” he continued.

“As the vast majority of pensions and investments are now exclusively managed through platforms, our industry will play a key role.

“This will include building financial resilience with clearer pathways from saving to investing, transparent and easy to understand information about risks and potential returns and low-barrier entry points to allow consumers to start small and build their confidence to invest.

“The FCA's commitment to new guidance rules to allow for targeted support for more people aligns perfectly with our sector's strengths.

“This alongside the Consumer Duty gives us both a responsibility and framework to ensure we're genuinely improving outcomes.”

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