FCA launches tool to help investors recognise signs of investment hype

Users see fictional messages containing chatter on investment opportunities, creating the feel of a real group chat discussing the latest “hot stock” tip.

Steve Martin, CEO of Influence At Work, said: “The number of investors being lured in by the hype is concerning.”

The tool is part of the FCA’s InvestSmart campaign to encourage people to make better-informed investment decisions that are suited to their financial circumstances and attitude to risk.

The responses entered by the user indicate whether their “hype type” is a calm, informed or rational investor and, upon completion, users are driven to the InvestSmart website to complete training involving investment-based tasks.

Calm is defined as not giving in to the context of urgency surrounding hyped investments; informed is seen as scrutinising information about investments; and rational is defined as doing due diligence instead of going with gut instinct.

The hype type tool can be accessed by on the FCA website at fca.org.uk/investsmart/hype-type-revealer.