Over two million DIY investors could be at risk

As many as 2.2 million DIY investors are at risk of putting their savings into unsuitable investment products without proper advice and are in danger of harming their future financial health as a result, online investment adviser, Wealth Horizon has warned.
Wealth Horizon believes that as many as one in five of the UK’s 11 million DIY investors who manage their own finances could be investing in markets that are unsuited to their financial needs. Indeed, this is compounded by the fact that many investors lack access to professional financial advice, which could increasingly lead to investors being exposed to unnecessary risk.
Wealth Horizon is calling on investment companies that do not offer advice to enforce responsible risk requirements to ensure that people with limited financial resources are prevented from investing until they are in a position to do so safely.
Chris Williams, CEO of Wealth Horizon, said: “Around one in five investors who enter our online advice process are not in a position where they can comfortably invest and we have a duty of care to advise them not to. We are looking out for their best interests and feel that more online investment companies that do not offer advice, should adopt similar policies so that they do not leave their customers at risk.
“The rise in the number of platforms and businesses offering an affordable way for savers to grow their nest egg is a great thing, as the investment industry as a whole needs to find a solution to help the large number of consumers who are looking to invest, but are unable to afford it.
“Yet a number of these new services are enabling people to put their money into products without providing any real advice as to whether it is suitable for them to do so; something which could increasingly lead to investors being exposed to unnecessary risk.
“What the investment industry does not need is quick fixes; consumers need protection and an advice process that works for them, not a service that purely benefits the company receiving the money.
“When people invest their hard earned savings, it can be a life changing moment, and companies need to behave responsibly and not simply accept people’s cash with no understanding of individual circumstances”.
Wealth Horizon provides responsible and regulated investment advice online. The advisory service will put an end to the advice gap, making investing more accessible and affordable to all, by allowing customers to access as much or as little investment advice as they wish via its website.