Freedom to Invest: overcoming the barriers to investment for under-represented groups in the UK

This report – produced in partnership with Robinhood – explores the barriers to investing faced by under-represented groups in the UK, specifically women and individuals from minority ethnic backgrounds. It is based on a comprehensive research programme that Global Counsel designed, conducted and analysed. It combines findings from a nationally representative survey of 1,856 current and prospective UK retail investors; in-depth interviews with investors from under-represented groups; and policy and industry analysis.

The research highlighted diversity both in investment approaches, and the role investing plays in wider life, with distinct barriers to investing for women and ethnic minorities. These limit potential for long-term returns and undermine investment to support business and drive infrastructure development. 

The research finds that while there is strong interest in investing across all groups, significant barriers to participation remain:

• A lack of confidence, which does not reflect a lack of knowledge, disproportionately affects women and minority ethnic consumers.
• Many prospective investors feel that investing platforms and communications do not speak to them. 
• A perceived need for large up-front sums and fear of loss deter many from taking first steps.

The report calls for targeted action from policymakers, regulators and industry leaders to address these barriers, including permitting communication that helps rather than alienates investors, dispelling myths about up-front capital requirements for investing, and using new policy frameworks to broaden the range of products retail consumers can invest in.