FCA survey finds younger adults spot pressure tactics in horror films more easily than in investment pitches
The regulator polled 666 adults aged 18 to 40 and points people to an online tool for working out what sways their decisions.
The ticking clock in Saw was recognised as manipulation by 59% of people in a Financial Conduct Authority survey published on Friday. Only 5% said they would be suspicious of a rising price graph on an investment.
Attest carried out the research for the regulator on 9 October, polling 666 UK adults aged 18 to 40 who own investments or would consider buying them within 12 months.
Urgency showed a similar gap. "This is your only chance" was seen as a warning sign in a horror film by 65%, yet 36% said a "last chance to buy" offer would make them more cautious, and 37% said they would feel pressure to buy quickly.
Friends and group chats had a pull of their own. While 80% saw "trust me, it's fine, everyone's doing it" as a warning sign on screen, 29% said excitement from friends or group chats would reassure them about an investment or make them trust it rather than research it.
Novelty was the last test. Some 47% noticed that horror sequels bring back familiar threats in new packaging, compared with 12% who were sceptical of a "groundbreaking new" investment product. One in 10 said novelty would make them more likely to invest.
The tool behind the campaign
The FCA points to InvestSmart, its campaign to help people make better-informed investment decisions. Its Hype Type Revealer is designed to show what might be influencing a person's choices and how to avoid being drawn in. The regulator says that in initial testing with more than 600 retail investors, the training cut high-risk investment decisions by 34.9%, and the effect was still there seven days later.
The FCA's message is to do the research and check an investment is right for you before acting.
