A study by Hargreaves Lansdown, conducted in partnership with the University of Nottingham, found that more balanced risk warnings—those that explained both the risks and potential rewards over time—significantly increased the likelihood of people investing in Stocks & Shares ISAs.
According to the platform, these revised warnings led to a 23% increase in S&S ISA openings among existing HL clients and an 8.7% rise among new investors.
LTAFs to be included in Stocks & Shares ISAs from April 2026
The study also revealed that existing HL clients became more confident with their investments, shifting more of their holdings from cash into equities—a trend that persisted six months after the initial communication.
Customers were shown two versions of the “important information” section:
Variant A stated: “Investing for longer increases the likelihood of positive returns. Over a period of five years or more, investments usually give you a higher return compared to cash savings.”
Variant B included all of Variant A’s messaging and added: “In fact, there is over 100 years of data showing that for 91% of ten-year periods, investments in shares have outperformed cash.”
Variant B proved slightly more effective, achieving a 23% open rate versus 19% for Variant A. It also prompted investors to contribute an additional 6.6% into the stock market, compared to 3.8% for those shown Variant A.
Simon Belsham, Hargreaves Lansdown’s chief client officer, commented:
“For too long, those considering investing have been met with stark, often discouraging warnings focused solely on risk. While it’s crucial to understand that investments can fluctuate in value and may result in losses, it’s equally important to highlight the long-term opportunities they present.”
