Keep it simple: The case for Plain English in financial documents
Financial documents are often packed with jargon, complex phrasing, and industry-specific terminology. While this might make sense to professionals, it can leave investors feeling confused and alienated. Worse still, unclear communication can lead to misinterpretations, eroding trust and even causing compliance issues.
Why Plain English matters
It leads to better engagement with your investors.
Investors need to understand the products they’re investing in. When information is presented clearly, they’re more likely to engage with it—and make informed decisions.It builds trust with your investors.
Transparency is key in financial services. Firms that communicate in Plain English demonstrate openness and integrity, strengthening client relationships.It’s crucial for meeting regulatory expectations.
UK financial regulators, including the FCA, emphasize the need for clear and fair communication. Overly complex wording can be seen as misleading, whereas Plain English ensures compliance and reduces risk.
Key principles of Plain English
Learning to write in Plain English is a skill. But once mastered, you’ll create copy that is faster to write, and easier to read. There are various tips and tricks to writing fluently in Plain English, but if you can follow these core Plain English principles, you’ve made a good start:
Use everyday language – Replace jargon and technical terms with simple, familiar words. If specialist terms are unavoidable, always provide a clear explanation.
Keep sentences short – Aim for an average of 15–20 words per sentence to improve readability.
Be direct and concise – Avoid unnecessary words or overly complex phrasing. Get to the point quickly.
Use active voice – "The company will pay dividends" is clearer than "Dividends will be paid by the company."
Break up information – Use headings, bullet points, and white space to make documents easier to scan.
Test for clarity – Ask someone unfamiliar with the content to read it. If they struggle to understand, simplify it further.
The bottom line…
Clarity isn’t just a courtesy—it’s a necessity. By simplifying financial documents, firms can enhance investor confidence, improve compliance, and stand out in a competitive market. After all, if an investor doesn’t understand your offering, why would they invest?