Behavioural biases pose risks to LISA investors - FCA

The regulator pointed to the LISA's dual purpose of promoting house purchase and aiding retirement saving as the principal reason for behavioural bias risks. It included present bias, over-extrapolation and overconfidence as possible behavioural bias risks the LISA could pose to consumers.  The FCA also warned in its consultation paper that the LISA, due to be available from  April 2017, could result in savers having insufficient retirement resources if they neglect or opt-out of their auto-enrolment schemes to instead fund their LISA. It said this could result in a "direct monetary loss...