The rollout of targeted support “will try and help to unlock the risk dilemma in the UK”.
This is what Barclays head of private bank and wealth management UK Mohammad Kamal Syed said at the Investment Association Funds Symposium conference on 21 October.
Interactive Investor CEO Richard Wilson added that currently the UK has the wrong balance when it comes to discussing risk.
He gave the example of radio adverts which last for 30 seconds but spend the last 15 discussing the risk involved in investments.
The Wisdom Council head of investor governance Dawn Houghton also outlined that the industry does become “paralyzed around terms like risk”.
Syed agreed and said the UK does a great job of telling investors of the risk but not the rewards.
However, he is hopeful that targeted support will allow professionals to not just talk about the problems surrounding a portfolio but also the solutions.
“Targeted support could change this and help people.”
Hargreaves Lansdown head of targeted support Nathan Long said that targeted support unlocks the power to let people make decisions.
Long also believes targeted support will lead to different shaped products for investors.
Still, Long sees the rollout of targeted support to be a very important issue and said: “we have a lot riding on it.”
Long used to be a financial adviser.
Syed does admit that targeted support is still in its early days but it is a very important piece of work.
In September, Templeton Emerging Markets Investment Trust (TEMIT) portfolio manager Andrew Ness said the UK has “lost its risk perspective and entrepreneurial spirt” whereas emerging markets (EM) are “clamouring” for growth.
Ness added he does not see the same desire for growth in the UK.
