THE City watchdog has revealed measures to get more people investing in shares in a bid to boost the uncertain London market.
The Financial Conduct Authority aims to make it easier for ordinary savers to put money into stocks and shares and take informed risks rather than just leaving their cash in low-return accounts.
A key shift could see the end of blanket “your capital is at risk” warnings.
Instead, firms would have to give clearer, more useful information that is tailored to the investment, so people understand what they are getting into.
The FCA also wants a sharper divide between retail customers and professional investors, who do not always need the same protections, so that firms can treat each group appropriately with the minimum of red tape.
The FCA’s executive director of markets Simon Walls said the “measures support investment risk culture right along the spectrum”.
The plans align with Chancellor Rachel Reeves’s push to build a stronger retail investing culture.
In her Budget last month, Ms Reeves cut the ISA cash allowance from £20,000 to £12,000, with the remaining £8,000 still available tax-free in stocks and shares ISAs.
She also announced a three-year tax exemption on shares bought in new UK flotations, to help London compete for blockbuster listings.
RATE CUT HOPE
MILLIONS of borrowers could get an early festive boost, with the Bank of England widely expected to cut the base rate from 4 per cent to 3.75 per cent on December 18.
Money markets are indicating there is a greater than 90 per chance of a reduction, with big banks including HSBC and Goldman Sachs also predicting a cut.
Bank of England Governor Andrew Bailey may give hints in a speech tomorrow.
HIGH FOR LOWS
THE choice of low-deposit mortgages is at its highest since 2008 — in a positive sign for first-time buyers.
At the start of December, there were 476 products on the market for borrowers with a 5 per cent deposit, and 917 deals for people with a 10 per cent deposit, according to financial website Moneyfacts.
The firm’s Rachel Springall said the news “painted a positive picture for borrowers”.
SALES QUITE A LOTTO LESS
NATIONAL LOTTERY donations to good causes have taken a knock after a sharp fall in summer sales.
Operator Allwyn reported a £118million drop in takings between July and September, leaving £24million less for charities.
EuroMillions sales plunged £99million, while scratchcards were also down on a year ago.
Weekly scratchcard sales slipped £10million to £36million compared to Camelot’s final months.
Allwyn blamed normal fluctuations and said returns are up £70million year on year on a like-for-like basis.
