Something strange is happening in the world of UK personal finance — the regulator that’s usually known for telling us to be cautious is now actively encouraging retail investors to take more risk.

Yes, you read that right.

In a surprising shift, the Financial Conduct Authority (FCA) has just unveiled a five-year strategy that aims to nudge British savers — especially younger ones — away from cash ISAs and crypto punts, and towards equities and bonds. The goal? To help the UK population build long-term wealth and address one of the country’s biggest ticking time bombs: retirement.

If you’re someone with investible assets and an appetite for returns, this is a trend worth paying attention to.

Let’s break down what the FCA is actually saying, why this pivot matters, and why Curation Connect may be the solution.

What’s Changed?

Historically, the FCA has leaned heavily on consumer protection. And with good reason — the financial industry doesn’t exactly have a spotless record. But under new leadership, the regulator is shifting its tone.

Speaking to MPs and the press, FCA Chief Executive Nikhil Rathi and Chair Ashley Alder made it clear: we need to get more people investing. Not speculating. Not gambling. But making informed, long-term investments in the real economy — particularly in mainstream assets like equities and bonds.

Here’s the headline message: too many young people in the UK are making their first “investment” in crypto. Rathi cited millions of under-35s diving headfirst into digital assets — often without understanding the risks and sometimes even borrowing to do it.

Compare that to the US, where 38% of people own shares directly, or Sweden where it’s over 20%. In the UK, we lag significantly.

The FCA wants to change that.

The Strategy: Rebalance Risk, Build Wealth

The new five-year roadmap from the FCA revolves around four goals — and one of them is helping more UK consumers access better long-term returns by investing in mainstream markets.

Here’s what that looks like in practice:

• Measuring Progress: By 2030, the FCA wants to see a meaningful increase in the number of people with over £10,000 in investible assets who hold equities or bonds.
• Rebalancing Risk: Alder introduced the idea of “informed risk-taking” — a mindset that accepts some volatility in exchange for long-term growth, rather than hiding in savings accounts that erode with inflation.
• Filling the Advice Gap: The regulator is exploring ways to allow more “targeted support” — essentially simplified investment guidance — without triggering full-blown financial advice rules.
• Boosting Trust: The FCA is also doubling down on fraud and financial crime to make people feel safer about entering the market in the first place.

Why the Push Now?

There are two big drivers behind this change.

1. The Ageing Population Crisis

By 2032, the number of people of pensionable age in the UK is expected to rise by 14%. The current system, which leans heavily on property and cash savings, is not equipped to deliver the kind of returns needed for financial security in later life.

The FCA sees capital markets as a solution — but only if people participate.

2. Crypto is Eating the Market’s Lunch

The surge in crypto participation among under-35s was a wake-up call. The FCA doesn’t want to ban crypto, but it does want to refocus retail investors on assets that build real-world value — and that are better understood, regulated, and historically more stable.

Rathi summed it up well: “One thing I think is not great is the sheer number of under 35-year-olds for whom the financial product they invest in first is crypto.”

Risk Isn’t the Enemy — Ignorance Is

A key theme in the FCA’s strategy is reframing risk. Traditionally, regulators have focused on protecting consumers from risk. But now, they’re acknowledging a different kind of danger: the risk of doing nothing.

Staying in cash ISAs while inflation eats your purchasing power. Avoiding equities because they’re “too volatile”. Failing to diversify. All of these are risks too — they just don’t feel as immediate as a bad crypto trade.

As Alder put it: “It isn’t an exchange, or an either/or, of consumer protection or growth. We want to supply retail consumers with far better tools to do this thing that is informed risk-taking.”

What This Means for Investors

If you’re a UK-based retail investor — particularly someone with a high-risk appetite looking for smarter ways to grow wealth — this new regulatory tone opens the door to opportunity.

Here’s how to interpret the signal:

• The regulator is backing long-term market participation: That means we may see reforms that make investing easier, cheaper, and more mainstream.
• Simplified advice and product access may be on the horizon: This could help bridge the gap between DIY platforms and full-service wealth management.
• Discounts on quality assets may emerge: If more money flows into UK capital markets, it could help re-rate undervalued listed investment vehicles, especially those offering exposure to innovation and venture assets (like the ones we explored in our blog — read more here).
• You’re not being asked to go full YOLO: The FCA isn’t saying dump everything into tech stocks. It’s saying: don’t ignore the potential of regulated, growth-oriented investments.

Is This a Green Light for Risk?

Not quite. But it is a recognition that risk isn’t inherently bad — when it’s understood, managed, and aligned with long-term goals.

This isn’t about replacing pensions with penny stocks. It’s about building a system — and a culture — where mainstream investment is normal, accessible, and rewarded.

The simplification of the FCA’s 10,000-page rulebook, the review of disclosure frameworks, and a crackdown on financial crime are all part of a broader shift: one that prioritises participation, trust, and growth.

Curation Connect: A Smarter Way to Bridge the Gap

The UK’s retail investment landscape may be on the cusp of a quiet revolution.

With regulators actively encouraging a shift toward mainstream capital markets, there’s now a clear need for platforms that make that world accessible — not just technically, but intellectually.

That’s where Curation Connect fits in.

Curation Connect helps investors discover and research compelling stock and share ideas — beyond the hype of social media and without the cost or complexity of traditional wealth management. It bridges the growing gap between simple DIY trading apps (which often lack context) and expensive financial advice (which is out of reach for many).

If the FCA wants more people to take informed risks, platforms like Curation Connect give them the tools to do it. Not by telling them what to buy, but by making it easier to explore, learn, and act with confidence.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always consult a financial professional before making investment decisions.

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