The UK’s financial services sector is entering a new phase.
Chancellor Rachel Reeves’ Leeds reforms set out a plan to support growth in financial services through a simpler and more stable regulatory environment — a welcome moment for an industry that wants to invest with confidence and help more people plan for their financial future.
By making Fos processes clearer and more predictable the government is helping strike the right balance
As chief executive of Pimfa, representing the wealth management and financial advice sector and its evolving needs, I welcome this commitment.
We have heard this sentiment echoed by leaders in our recent growth report, developed with UK Finance and KPMG.
Firms see real opportunity ahead, but they also need a regulatory environment that gives them the confidence to grow sustainably and that supports innovation.
The feedback was consistent: regulation needs to protect consumers.
But it should also create room for innovation and growth so firms can deliver the best outcomes for their customers.
The government’s renewed focus on cutting red tape and empowering the industry aligns positively with this sentiment.
The case for proportionate regulation
Regulation is essential to ensure client protection, security and market confidence.
However, when rules become overly complex or frequently change it creates uncertainty, and that uncertainty can prevent firms from investing and planning for the future.
The need for more proportionate, stable regulation is clearly a prerequisite for sustained growth, inward investment and job creation.
Wealth management and financial advice are no exceptions.
This is a sector with global scale and deep expertise, with more than £1.6tn of assets under management in the UK.
But if we want to stay competitive we need a regulatory approach that allows firms to invest in people, technology and the services that matter to customers.
Clearer rules will allow for more people to receive the benefits of financial advice and maintain the UK’s position as a global centre of expertise and capital.
Supporting consumer confidence and better outcomes
We cannot talk about reform without thinking about what it means for people.
At the heart of these reforms are genuinely groundbreaking measures to help consumers make informed choices about their money, where to invest it and how to draw down on it.
We strongly believe that the new targeted support regime will provide consumers with the tools to do just that as well as acting as a way to get more people to understand the true value of financial advice.
While we believe the real utility of these reforms will initially be seen in helping consumers avoid foreseeable harm, we hope that in time, and in combination with a grown-up discussion about how we communicate risk, it can help transform Britain from a nation of savers into a nation of investors.
Through close engagement with the government, industry and regulators we must work together to focus our efforts on building financial literacy, expanding access to financial advice and promoting innovation in products and services that meet the diverse needs of savers and investors.
Reforming the Financial Ombudsman Service
Certainty is vital — not only for clients but for the firms that serve them.
That is why we especially welcome the government’s commitment to reforming the Financial Ombudsman Service.
Effective, fair dispute resolution builds confidence in our sector but, for too long, uncertainty about how decisions are reached has made it difficult for firms to plan and put a brake on innovation.
Reform of the Fos presents a significant step forward in terms of customer protection.
By making Fos processes clearer and more predictable the government is helping strike the right balance, ensuring fairness for consumers and giving firms the clarity they need for business certainty.
We look forward to working with policymakers to maintain this balance, ensuring that the new operating model delivers fair outcomes for all.
A shared ambition for growth
This is a sector with all the ingredients for success: talent, tradition and the trust of clients.
But to build on those strengths, firms need to be able to invest confidently in the future.
Whether that means digital propositions, sustainable investing or embracing future technology, the right regulatory environment can make all the difference.
At Pimfa we know reform works best when industry, regulators and policymakers collaborate with each other.
The implementation of these reforms and the learning we take from them matter just as much as the headline announcements.
If we get it right these reforms have the potential to create meaningful changes, helping more people invest in their futures and supporting wider economic growth.
Looking ahead with confidence
As we look to the future, our priorities are clear.
The power of the wealth management and financial advice sector to drive growth is huge — but only if regulation supports, rather than constrains, ambition.
The Leeds reforms focus on simplicity, stability and strong outcomes, and will help increase the competitiveness of the UK.
What happens next matters.
By working in partnership we can ensure these reforms bring about genuine benefits for clients, firms and the wider economy, delivering growth, resilience and opportunity for generations to come.
Liz Field is the chief executive of Pimfa
