The UK Chancellor’s recent call for Britons to move from cash to equities and the pledge to rebalance regulation in favour of driving more retail investment and economic growth have the potential to bring about historic change for the country.
While these developments present tremendous opportunity, there are no shortcuts to building a solid foundation for lasting change. The United States faced a similar challenge in the 1970s. There, a series of pivotal shifts reshaped attitudes toward saving, investing, and wealth accumulation, and redefined what it means to be an investor actively participating in a nation’s economic growth.
A central thread in the U.S. journey toward mainstream investing has been putting the individual investor at the heart of everything. This means creating investment products, customer experiences, industry standards, and regulations that encourage greater engagement and participation, while providing the education, support, and safeguards investors need to succeed. Here’s how these lessons can be applied in the UK.
Make investing more accessible to a wider range of people
Schwab’s story is central to the U.S.’ transition to becoming more of a nation of investors. When the Securities and Exchange Commission (SEC) deregulated brokerage commissions in 1975, most firms seized the opportunity to raise their fees, but Schwab went the other way – we cut them. This decision became a catalyst for a sweeping cultural shift that made investing a bigger part of American life than ever before. We also invested in education, tools, and support resources to guide investors into a new world of financial independence, showing them the potential of long-term investing.
