Trio of associations outline reforms to unlock UK’s economic growth

Three associations from the financial services have come together to launch a new report that outlines four key pillars to reform the UK’s private banking and wealth management (PBWM) sector.

PIMFA, UK Finance and KPMG UK said their new joint report comes at a “critical time” as the Chancellor prepares her growth and competitiveness strategy for financial services.

The trio engaged chief executives and board-level representatives from 19 firms that constituted a broad cross-section of the PBWM sector, including wealth managers, financial advisers, financial planners, distributors and private banks.

In the report, the three bodies outlined four key priorities for reform that industry leaders say are essential to unlocking the sector’s full potential and helping deliver long-term across the UK economy.

These four priorities are to introduce fairer and more proportionate regulation, embracing innovation and smarter compliance, introduce a clearer more stable tax environment, and to strengthen financial literacy.

PIMFA chief executive, Liz Field, said: “We welcome recent signals from Government and regulators around growth and competitiveness, but there’s a concern across our sector that without a more stable, proportionate, and joined-up policy environment, we risk missing a vital opportunity to unlock investment, drive innovation and promote greater financial resilience across society.

“Now is the time to go further, faster, and unlock the potential within the wealth management, financial advice and planning sector to unlock the growth we all want to see.”

For improving regulation, the report stated that policymaking and supervision should be “more predictable, consistent, and supportive” of the industry, along with closer collaboration between the Financial Conduct Authority (FCA), Financial Ombudsman Service (FOS) and Financial Services Compensation Scheme (FSCS).

It also said there is a “valuable opportunity” to build greater confidence by providing more certain and predictable tax policies and clearer direction.

The report also highlighted the sector’s increasing focus on how emerging technologies like AI can enhance client outcomes, and suggested the Government could play a key role by supporting incentives that boost investment and broaden retail participation in financial markets.

Furthermore, the report also warned of a “persistent and critical gap” in financial literacy, and that tackling this could unlock greater engagement with advice and better decision-making.

Managing director of personal finance at UK Finance, Eric Leenders, said the report provides a “clear roadmap” for how the WMPB sector can partner with the Government to drive growth.

“It also makes clear that if we want more people to benefit from financial advice and long-term investing, we need to remove barriers, modernise regulation and really invest in improving financial literacy,” Leenders said.

Partner at KPMG UK, Daniel Barry, added: “As risks to the UK’s financial stability are rising, the Government has a significant opportunity to instil greater confidence among sector leaders at a time of great uncertainty and geopolitical volatility. Policymakers, supervisors and the sector must work together to both safeguard it and deliver growth.”



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