Risk Warnings Review

The Risk Warnings Review was commissioned in July 2025 following a request from the Chancellor, as part of the Government’s Leeds Reforms, which aim to improve the UK’s investment culture and encourage greater long‑term participation in capital markets. The Chancellor asked the Investment Association (IA) to lead a review of how investment risk warnings are presented to consumers, reflecting concerns that existing approaches were not functioning as intended.

The request came against a backdrop of persistently low retail investment participation in the UK, with large numbers of households remaining in cash for the long term. Evidence suggested that standard, loss‑focused risk warnings could reinforce fear and disengagement, rather than supporting informed decision‑making and consumer confidence.

Structure of the Review

In response, the IA convened a pan‑industry Risk Warnings Review, chaired by Chris Cummings, Chief Executive of the Investment Association. The Review was supported by a Steering Group comprising senior leaders from across investment management, platforms, advisers, consumer groups and legal experts.

A Technical Expert Group was also established to consider detailed regulatory and practical issues, working alongside the IA Secretariat. The Financial Conduct Authority (FCA), HM Treasury, and the Financial Ombudsman Service (FOS) participated as observers throughout the process, ensuring close engagement with the regulatory framework while maintaining the Review’s industry‑led nature.

Objectives of the Review

At the outset, the Steering Group agreed a set of clear objectives for the Review, including:

• Reframing the industry’s use of risk warnings on mainstream investment products to improve consumer understanding and support confident participation.
• Aligning risk communication, where possible, with wider regulatory developments, notably the Consumer Duty, the Advice‑Guidance Boundary Review, and Consumer Composite Investments.
• Developing a shared approach across Government, regulators and industry to bring greater consistency and clarity to how investment risk is communicated.
• Identifying areas where further work or regulatory change may be needed beyond the immediate scope of risk warnings.

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