The Financial Conduct Authority needs to be clearer about the risks consumers take when they invest, two senior executives at the regulator said.

“The short answer is yes, we do need to be clearer about that,” Megan Butler, the head of transformation at the watchdog, said on 25 March, when asked if the FCA needed to be more explicit that there is a possibility that a firm can fail and retail investors lose their money. “We do need to help consumers understand the implications of that before it happens.”