(PRWEB UK) 23 October 2011
New research* from Legal & General Investments, one of the UK’s largest investment providers, reveals that almost three quarters (71%) of people find investing confusing.
When consumers were asked which statement best described their outlook on investments, 71% stated that investing was either ‘confusing or very confusing’. 13% of these suggested that investment providers ‘urgently need to rethink how they make their products clearer’ with the other 58% stating that providers ‘could do more to make products clearer’. Investors who have discretionary IFAs who act on their behalf appear to have even less understanding of the markets, with four in five (80%) stating that investing is confusing.
However, all is not lost – almost one in ten (9%) say that providers are supplying ‘more than adequate guidance to investors’. Additionally, one fifth (20%) state that investing isn’t confusing and that providers offer ‘clear products’.
The research from Legal & General Investments coincides with the suggested changes to the IMA managed sector definitions from active, cautious and balanced managed sectors to four sectors named simply: Managed A, B, C and D.
Simon Ellis, Managing Director, Legal & General Investments, said: “We welcomed the IMA’s decision to delay implementing the changes to the managed sectors but we maintain that it is important to get closer to the ‘right’ answer rather than the ‘quick’ one. Legal & General Investments believes that the views of the end consumer must be sought and their needs taken into account more thoroughly. Ultimately, they are the ones most at risk from poor definitions, and it is the lack of clarity at consumer level that has prompted the review.
“If the new definitions are to be recognised as fair and robust by users and regulators, the IMA must evidence that consumers and advisers have contributed in a meaningful way to research and this should form the foundation for any changes.”