‘Capital is at risk’: The phrase that spooked too many Brits out of investing
Yes, capital is at risk – but so is opportunity if UK capital remains idle, unproductive and disconnected from the engines of national growth, write Alastair King and James Deal, co-CEO of Retail Book
We are no strangers to the phrase “capital is at risk”. Culturally it has become set in stone as the necessary disclaimer to remind us all that investing carries uncertainty. But, we must recalibrate our understanding of risk as the real one facing us is that, currently, UK capital remains idle, unproductive and disconnected from the engines of national growth.
When investors hold cash, capital earns nothing, contributes nothing, missing the opportunity to build wealth. The capital that is truly at risk is the capital that is not working, not building, not growing and so not contributing to the future of the UK economy. This extends to creating the opportunity to which everyone should have access.
Sid the Saver vs Sid the Investor
The recently published Get Invested report by Retail Book makes this starkly clear. It compares two archetypes: Sid the Saver and Sid the Investor. Over a lifetime, Sid the Saver is diligent, cautious and risk-averse, accumulating £617,000. Meanwhile, Sid the Investor – engaged, informed and invested in UK equities builds a portfolio worth £2.3m. This is why the Investment Association’s Retail Investment campaign is critical. It presents a powerful opportunity for the industry to unite behind a national effort to transform the UK’s investment culture. We cannot afford to be caught flat-footed.
To unlock opportunity, we must first unlock understanding and enablement. Investors do not wish solely to be passive participants; when enabled, they also want to be stakeholders in the stories of our capital markets. For too long, public markets have felt distant, complex and inaccessible to this cohort. As an example, when investors understand how IPOs work, how and why companies raise primary capital, they move from the sidelines to the centre of the story. This is where financial literacy becomes a lever for the journey of inclusion.
This shift is not theoretical – it is practical, measurable and transformative. It means more stakeholders are invested in the UK economy, and ensures greater alignment between national success and personal prosperity. The ongoing Advice Guidance Boundary Review will be pivotal in standard setting for financial advice that is both accessible and informative, not only about the risks of investment – but the significant financial risks of not investing. It is essential that the industry remains closely engaged to ensure the reforms deliver meaningful impact.
2026 marks a turning point with the FCA’s new Listings and Prospectus regime in place, aiming to simplify access to public markets, reduce costs and frictions for issuers, and encourage broader retail participation. This will send the strongest signals yet that the UK is open for business, and with bold intent: to make capital markets more inclusive, agile and oriented for growth. These reforms are not just regulatory tweaks – they are a call to action for industry and investors alike. The good news is we are already seeing the green shoots of change. To unlock retail capital substantially, we must go further.
How to shift Brits’ cautious mindset
This is a cultural challenge as much as a financial one. We must shift the mindset from one of caution to one of contribution. A London listing is not just a win for the company, it is a win for the United Kingdom. When all stakeholders are invited to participate, it allows the investors of today to support the companies of tomorrow.
Take the Beauty Tech Group which listed in London this month in an IPO with a valuation of around £300m. They started in 2009 in Manchester and now have research and development teams in California and the UK, with operations globally. By working with leading research partners – such as the University of Manchester – they are developing the next generation of devices for in-home beauty technology. Now it is listed, we can all buy a share of the company and join its journey.
It is a moment where ambition meets opportunity and the public can share in the success of the UK businesses. These stories play a vital role – they connect investors to purpose and companies to community. If we want to unleash growth, we must unleash a belief, in our markets, in our companies and in the power of retail capital to help shape the future. The time has come to make investing not just accessible, but aspirational, a national endeavour that benefits all. Now is the time to rethink risk, rewire cultures and reopen opportunity.
Alastair King is the Lord Mayor of Canada and James Deal is the co-CEO of Retail Book