RiF created the Retail Consumer Interests Study (RCI) in 2013 alongside a group of leading global asset management firms.
Originally launched in direct response to the Financial Conduct Authority’s (FCA) implementation of its Retail Distribution Review, more than a decade later, this study has continually evolved to meet the needs of asset managers. The study has recently been adapted to support new FCA requirements, including UK Consumer Duty, requiring asset managers to “act to deliver good outcomes for retail customers” and the Sustainability Disclosure Requirements (SDR), which contains measures addressing anti-greenwashing and the marketing and labelling of sustainable funds.
The research offers unique and valuable insights into private investing, such as the motivations of the self-directed investor, product selection process, private investor expertise and client satisfaction. The study also features RiF’s signature indexing on findings, covering the FCA’s four vulnerability categories: adverse health conditions, recent life events, capability issues and financial resilience.
RCI consists of four phases throughout the year:
Phase 1. A quantitative study of over 1,700 private investors identifying their characteristics, investment purchase motivations, customer journey, information sources preferences, channel preferences and risk appetite – all aligned to the four outcomes of the FCA’s Consumer Duty.
Phase 2. A two-week online community including qualitative marcomms testing among a diverse group of Private Investors, including representation of those displaying vulnerability characteristics outlined by the FCA. The 30 community participants also include a mix of those who consider themselves more confident in terms of investment experience and knowledge, as well as those less so.
Phases 3 & 4. The second half of the study remains flexible and is determined based on collective opinion after the completion of the community Phase 2, allowing for continued exploration of topics or challenges faced by the syndicate members. This flexibility ensures that the study meets the syndicate members’ needs as they develop in order to continue to meet FCA regulation. For 2024, these flexible phases will provide insight into the recent investment interactions of private investors holding funds with our syndicate members, using the COM-B behavioural modelling framework, to provide insight on how to create targeted actions that lead to positive changes in investing behaviour and outcomes.
The study also offers access to our unique syndicate working group, allowing members the opportunity to meet and discuss challenges with peers in a Chatham House environment.
Interrogation of this information is crucial to ensure that current investment products and any future products address both the needs of the customer and meet consumer expectations. The focus of FCA to place the emphasis of transparency and culpability with the suppliers has meant that there is increasing demand for asset managers to ensure and evidence that they are meeting these regulatory requirements.
For more information on this study please contact Mick Hrabe.
