Companies prevented from joining the consumer investment market

3 min read | October 19, 2022 06:21 AM BST | By Rishika Raina

Highlights

  • One of every five applications looking to enter the consumer investment market was rejected or revoked.
  • The FCA aims to assist people in investing confidently while ensuring that investment scams are curtailed.
  • Last year, more than 1,800 consumer alerts regarding illegal companies or individuals were released by the FCA.

One out of every five applications from companies intending to enter the consumer investment market in 2021/22 were either rejected or revoked, according to the Financial Conduct Authority (FCA).

The financial regulator said that it aims to confidently educate and assist individuals in investing. At the same time, they also keep a check on the number of individuals investing in riskier products. The FCA also aims to take stringent action against illicit players and curtail the increase in investment scams.

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Additionally, the regulator would also hold discussions later this year regarding a “more proportionate” advising system for investments in stocks and shares Isas. FCA’s plan after that is to evaluate the difference between guidance and advice.

According to FCA’s executive director of markets, Sarah Pritchard, the ongoing interventions in the consumer investment market would take time to show their full effect, especially amid the deteriorating economic conditions.

However, the FCA is determined to provide yearly updates on the progress. Last year, more than 1,800 consumer alerts regarding illegal companies or individuals were released by the FCA, which was 40% greater than the year before that.

VIDEO LINK: https://www.youtube.com/watch?v=z3fe3Zjyvtk

While FCA focuses on the growth and protection of UK financial markets, investors can keep an eye on the following financial stocks trading on the London Stock Exchange.

Plus500 Ltd (LON: PLUS)

The YTD (year-to-date) return of the globally operating fintech company, Plus500 Ltd, stands at 30.69% as of 18 October, with its yearly return standing at 26.22%. PLUS shares were up by 0.39% on Tuesday at 2:06 PM (GMT+1), trading at GBX 1,782.00. The FTSE250 firm’s market capitalisation at the time of writing stands at £1,687.89 million, and it has a turnover (on the book) of £652,744.49. With an EPS (earning per share) of 4.71, the firm’s P/E ratio lies at 5.13.

Beazley plc (LON: BEZ)
The YTD return of the company specialising in insurance businesses, Beazley plc, stands at 33.39% as of 18 October, with its yearly return at 61.68%. BEZ shares were up by 1.39% on Tuesday at 2:14 PM (GMT+1), trading at GBX 622.00. The FTSE250 firm’s market capitalisation at the time of writing stands at £3,743.45 million, and it has a turnover (on the book) of £1,822,698.18. With an EPS of 0.51, the firm’s P/E ratio lies at 24.48.

Bank of Georgia Group plc (LON: BGEO)

The YTD return of the British holding company offering banking services, Bank of Georgia Group plc, stands at 22.30% as of 18 October, with its yearly return at 32.47%. BGEO shares were up by 0.49% on Tuesday at 2:19 PM (GMT+1), trading at GBX 2,040.00. The FTSE250 firm’s market capitalisation at the time of writing stands at £974.45 million, and it has a turnover (on the book) of £569,761.30. With an EPS of 15.22, the firm’s P/E ratio lies at 3.32.

 

Source: https://uk.finance.yahoo.com/news/one-five-firms-prevented-entering-230100370.html#:~:text=One%20in%20five%20applications%20from,according%20to%20the%20City%20regulator.

 


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