‘UK adults would invest £35bn more a year if investment products were more transparent’

The research by personal investment firm Willis Owen also found that adults in Wales are the least likely to invest because of this lack of clarity, with 68 per cent put off because products and their investment risks are poorly explained.

Percentages in other regions include: London (66 per cent); Scotland (66 per cent); East Midlands (65 per cent); North East 65 per cent); Yorkshire/Humber (62 per cent); North West (57 per cent); South East (57 per cent); South West (54 per cent); West Midlands (55 per cent); and East Anglia (51 per cent). The national average is 61 per cent.

The research reveals Welsh adults would invest an additional £709 on average a year, or £1.97bn in total, if product details were clearer.

Only 24 per cent of UK adults investors think fund managers are clear in explaining the risk profile of their funds.  Some 59 per cent describe the industry as being poor at this, with 12 per cent claiming they are ‘very unclear’.

Adrian Lowcock, head of personal investments at Willis Owen, said: “A ‘clarity deficit’ of £35 billion in the UK is scandalous. People need to be saving for their futures, but if they are put off investing by the lack of clarity in the products then this means they are missing out on the benefits of the long-term returns generated by financial markets.

“By rights it should be a win-win situation – if the investment management industry was more transparent it would see an extra £35 billion a year of extra investments to manage.

“A step change is clearly needed in terms of helping people to understand more about investing. This is one of the main reasons why we launched our starter portfolios.”