20
Feb

Regulator blamed for enabling obtuse industry language

Investment Association unveils tips on tackling jargon

From Portfolio Adviser with Sonia Rach
Published: February 20, 2019

Original Post: https://portfolio-adviser.com/regulator-blamed-for-enabling-obtuse-industry-language/

The Investment Association has launched guidance to tackle the issue of jargon in the industry and help fund managers communicate more clearly with UK savers, but robo investment managers are already on the right track, according to industry experts.

Three-quarters of investors struggle with technical terms, according to consumer testing carried out by the IA in partnership with The Wisdom Council.

Savers said they had difficulty understanding a range of commonly-used terms, with less than half able to correctly explain income, return, growth and yield.

Despite half of savers citing risk as the most important factor when selecting a fund, the IA’s research revealed that the risk was perceived negatively and the link between risk and reward was not well understood.

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