Elly Dowding and Lee Coates OBE, ESG Accord and The Accord Initiative say the Financial Lives Survey Is a Wake-Up Call which needs to be acted upon.
The FCA’s recently published Financial Lives Survey 2024 is rich with insights that should make everyone in the financial advice industry sit up and take notice. As we unpacked in the latest episode of our Accord Talks podcast, this is not just a data set – it’s a call to action.
We’re urging all advisers, paraplanners and financial professionals to not just read the Financial Lives Survey, but to act on it.
This year’s survey gives us a 360° view of consumer attitudes and behaviours. Over 17,950 people responded, creating a unique opportunity to align advice models with what clients actually want. And what they want, overwhelmingly, is to be asked.
76% of adults with investments or a DC pension thought it important to be asked if they wish to invest responsibly. That doesn’t mean they all want to invest that way, but it does mean they want the conversation. That’s huge.
We’ve been hearing for years that clients are interested in ESG. Now we’ve got hard evidence – and yet we’re falling short.
According to the FCA, only 18% of people say they’ve ever invested in responsible investments, and just 11% made that choice actively. Yet 72% say they want their investments to do some good and deliver a return. Something isn’t adding up.
There’s a disconnect. Clients hold strong values – the stats show that – but those values aren’t making it into their portfolios. I like to think it’s a ‘not yet’ situation. That’s why the work we do at the Accord Initiative is focused on helping advisers bridge that gap, simply and confidently.
So, where do we go from here? What should the industry do in response?
1. Ask Every Client – and Ask Thoughtfully
Don’t assume that only certain clients will care about responsible investing. The survey shows that interest spans wealth brackets, generations, and genders, though it does highlight gaps that demand attention. For example, only 49% of women are aware of responsible investments, compared to 67% of men.
This is a major opportunity. The gender investment gap is widening – but women are expected to control the majority of UK wealth by the end of 2025. That’s an open door for better, more inclusive advice.
2. Go Beyond the Binary
It’s not about a ‘yes or no’ approach to ESG. Some clients may want their full portfolio aligned with their values. Others may want to screen out specific sectors, or allocate just a portion to ESG strategies. The FCA’s own data shows that clients want to “do well while doing good,” but need help to navigate the options.
This is not a one-size-fits-all space. We have to break it down and guide people. That’s an adviser’s job.
3. Understand Emotional Drivers – and Possible Vulnerabilities
Responsible investing can be personal – even emotional. If a client expresses strong feelings, particularly about climate or social justice, that could signal climate grief or anxiety. Are advisers ready to recognise vulnerability and respond appropriately? Care is needed here, especially under Consumer Duty.
This is a new frontier for advice firms – and one that will only become more important.
4. Use the SDR to Build Trust
The FCA’s Sustainability Disclosure Requirements (SDR) – including new fund labels and the anti-greenwashing rule – are designed to bring clarity. But right now, many clients are still in the dark. 68% say it’s hard to tell which funds are genuinely sustainable. Only 29% check whether fund info is independently verified.
We need to help clients interpret this landscape.
Advisers have a huge opportunity to be the translator. To show clients where their money is going, how it aligns with their values, and what it’s achieving – with honesty and realism.
At ESG Accord, we believe in providing advisers with the right tools. That’s why we offer a free suitability toolkit through the Accord Initiative – helping firms structure compliant, confident client conversations about values, preferences, and ESG.
We also invite you to listen to our latest podcast episode, where we explore the Financial Lives Survey in more depth. It’s a practical guide to what the survey means for you, your clients, and the future of financial advice.
Read the survey. Listen to the podcast. Take action. It’s time to close the gap between what clients want and what they’re getting.
