Investment Association publishes its Risk Warnings Review in collaboration with Boring Money

The Risk Warnings Review, commissioned by the Chancellor as part of the Leeds Reforms and undertaken by industry, government and regulators, has today published its final report – ‘Supporting a New Retail Investment Culture’. The report sets out how investment risk can be communicated more effectively so consumers can make properly informed decisions.

Drawing on a range of evidence, including commissioned research by Boring Money, we collectively demonstrate that how we communicate investment risk across a saver to investor journey is a key driver for consumer decision making. The research evidences how risk messages need to be more intuitive, better timed, and more aligned with real consumer behaviour.

In conjunction with Risk Warnings Review, we put together a research report featuring qualitative, in-depth interviews with 16 savers and low-confidence investors to examine how risk and reward are communicated across the customer journey.

You can access the report for free and read the full press release here.

PRESS RELEASE, 09 April 2026, London

Risk Warnings Review recommends rebalancing of risk warnings to help consumers take better informed investment decisions

The Risk Warnings Review, commissioned by the Chancellor as part of the Leeds Reforms and undertaken by industry, government and regulators, has today published its final report – ‘Supporting a New Retail Investment Culture’. The report sets out how investment risk can be communicated more effectively so consumers can make properly informed decisions.

With the lowest rate of personal investment in the G7 and large numbers of people holding cash savings, the report supports the new direction of the UK’s investment risk culture and is part of the wider collective effort of government, industry and the regulator to help more people harness the benefits of investing to achieve their long-term goals,

The landmark report recommends a series of practical changes, including moving away from the widespread use of standardised risk warnings. It observes that these are either widely misunderstood by savers, deterring their engagement with long-term investing, or frequently ignored by seasoned investors.

Drawing on a range of evidence, including research commissioned by the Review and conducted by The Wisdom Council and Boring Money (published today), the report also found that simple and accessible explanations of how investments can rise and fall, presented alongside relevant benefits and explicit time horizons, are seen as more likely to encourage positive actions, including starting to invest.

Alongside the final report, the Risk Warnings Review also today publishes Risk Warnings Guidance, setting out steps firms can take now to improve how risk is communicated in mainstream investment promotions. This includes moving away from routine use of “capital at risk” as a default and focusing on information that meets consumers’ needs, prioritises comprehension and supports effective, timely and properly informed decisions around risk and reward.

Chris Cummings, Chair of the Review and Chief Executive of the Investment Association, said: “This Review marks an important turning point in how we talk about investing in the UK. For too long, well‑intentioned rules and industry caution have resulted in warnings that overwhelm rather than inform, discouraging people from taking the long‑term decisions that could strengthen their financial resilience. Our findings show a clear path forward – one where firms can communicate risk in a way that is balanced, contextual and genuinely helpful for consumers.

“In the months ahead, we will support firms to put the recommendations into practice, deepen our engagement with the FCA and industry partners, and continue testing what truly works for savers and investors. By embedding more effective risk communication across the consumer journey, alongside the upcoming Retail Investment Campaign, we can help build a healthier investment culture. Together, both projects will enable more people to feel confident in investing, participate in the growth of the economy and secure better long‑term outcomes for themselves and their families.”

Sarah Pritchard, Deputy Chief Executive of the FCA, said: “We want to see a stronger investment culture in the UK, so consumers are better supported in navigating their financial lives. Consumer confidence underpins a strong investment culture and confidence comes from clear, balanced information about the potential rewards and risks.

‘We welcome the review’s push to make the way risk and reward is communicated clearer to consumers, rather than a tick box exercise.

“We will continue to support this work and look forward to seeing the difference the review makes alongside our new rules on targeted support which should help millions make financial decisions.”

Claire McAlees, Senior Financial Promotions Compliance Manager at Hargreaves Lansdown & Chair of the Technical Working Group, said: “I am proud of the deeply collaborative effort that has gone into translating the Review’s ambition into practical guidance for firms. This work has been grounded in a clear principle: risk communication is most effective when it reflects how consumers actually read, interpret and act on information, not how the industry assumes they should.

“The Review’s findings, which were supported by research from Hargreaves Lansdown, show that standardised, loss-focused warnings are too often misunderstood, ignored, or even deter long-term investing, whereas clearer, more contextual explanations are more likely to be understood and trusted. The guidance helps firms move away from formulaic wording and towards more meaningful communication. It encourages firms to explain risk in a way that is proportionate, relevant to the product and aligned with consumers’ long-term objectives.

“By focusing on comprehension, timing, and real-world decision-making, firms can practically support informed and confident investment decisions, while maintaining strong standards of consumer protection.”

Recommendations to ensure long-term clarity in investment risk communication from the report include:

• Amend the FCA’s financial promotion rules – specifically Conduct of Business (COBS 4) – to support clearer, more contextual explanations of how investment risk works in practice.

• Reform the standalone compliance principle to enable plain‑language explanations of risk and reward across the consumer journey, rather than formulaic repetition, and to better align supervisory practice with outcomes‑based regulation.

• Ensure that the impact of current guidance and any future reforms is reinforced through consistent application across supervision, enforcement and dispute resolution, including closer alignment between FCA policy, supervisory expectations and Financial Ombudsman Service decisions.

• Encourage ongoing collaboration between industry and regulators in achieving shared objectives of more effective risk communication.

Anna Lane, CEO of The Wisdom Council, said: "In over a decade of talking to customers about long-term savings and investments, The Wisdom Council (TWC) have been all too aware that perceptions of risk are a major barrier for potential investors. When customers ask about the risks associated with a product, what they really mean is ‘will I lose all my money’? As an industry, we have been adept at reinforcing this negative framing. TWC welcomes the shift towards greater balance in communications, informing rather than warning. We are proud to have brought an important customer perspective to the project and look forward to working with the industry as they implement the Investment Association’s guidance."

Holly Mackay, CEO & Founder of Boring Money, said: “For too long, risk has been the 4-letter word of investing. It’s regularly cited as the main barrier to investing by those who keep everything in cash – 50% say this is the main reason they don’t invest, up from 42% in 2025. Too many people keep their long-term savings in cash and are closed to the concept of investing, whatever their timeframes. Over 4 in 10 cash-only savers today say they would never consider investing in shares.

“These changes enable a more informed conversation with consumers which presents a much more balanced view of how cash and shares are both important parts of a balanced long-term financial diet.”

You can also access the findings on the Investment Association website here.

ENDS

Notes to editors

• The Risk Warnings Review was commissioned by the Chancellor in July 2025 as part of the Leeds Reforms to improve how investment risk is communicated to consumers.

• The Review draws on extensive evidence, including: consumer testing by The Wisdom Council (survey of 1,010 participants), qualitative in-depth interviews with 16 low‑confidence savers and investors in November 2025 to map the consumer journey conducted by Boring Money, literature reviews, firm insights and regulatory analysis.

• The Wisdom Council research included an A/B test of different risk and reward statements with 1,010 savers and novice investors, fielded 18th November – 2nd December 2025. When presented with ‘capital at risk’, almost 2 in 5 thought they could lose everything, and 3 in 5 (59%) took away the message that investing is risky.

• The accompanying Risk Warnings Guidance as well as The Wisdom Council and Boring Money research is published alongside the final report.

• The Review was supported by a Steering Group and Technical Expert Group comprising senior representatives from across investment management, platforms, advisers, consumer groups and legal experts, with the FCA, HM Treasury and the Financial Ombudsman Service participating as observers.

• The Investment Association’s latest ISA Barometer found that almost half (48%) of Cash ISA savers cite risk as the biggest barrier to investing. The report and guidance form part of the IA’s continued work to support a stronger UK investment culture, aligned with the Government’s growth agenda, Consumer Duty and the Retail Investment Campaign.

List of firms, trade bodies, consumer groups and experts involved:

• The Investment Association (Chair and Secretariat)

• Hargreaves Lansdown (Chair of the Technical Expert Group)

• Aberdeen/Interactive Investor

• AJ Bell

• Association of Investment Companies

• Barclays Private Bank & Wealth Management

• BlackRock

• Boring Money

• Evelyn Partners

• Eversheds Sutherland

• Fidelity International

• Moneybox

• Nationwide

• Ninety One

• Octopus Investments

• Personal Investment Management & Financial Advice Association

• Quilter

• Robinhood

• Schroders Personal Wealth

• St James's Place

• The Association of British Insurers

• The Investment and Savings Alliance

• The Wisdom Council

• UK Finance

• Vanguard

Observers

1. Financial Conduct Authority

2. Financial Ombudsman Service

3. HM Treasury