- A new report from PIMFA, UK Finance and KPMG UK finds that simpler and more predictable regulation, clearer tax policies and improved financial literacy will help drive growth and innovation in the UK’s private banking and wealth management sector.
- Leaders are calling for reforms which can unlock the full potential of a sector managing over £1.6 trillion in assets and supporting more than 4 million clients.
- It finds the sector is ready to help deliver national priorities – including long-term investment, improved financial education and smarter use of technology – but only if key barriers are addressed.
20 May 2025, London – A new report from PIMFA, UK Finance and KPMG UK has revealed opportunities for how the government can further support the UK’s Private Banking and Wealth Management (PBWM) sector in helping to deliver growth, provided four key barriers can be addressed. This comes at a critical time as the Chancellor prepares her growth and competitiveness strategy for financial services.
Based on interviews with Chief Executives and senior leaders from across PBWM, financial advice and related services, “UK Private Banking and Wealth Management: Harnessing the Sector to Deliver Economic Growth” outlines the reforms required to unlock the sector’s full potential. The findings reflect a clear industry consensus that the sector is not only equipped but also eager to support the government’s growth ambitions. However, this potential will remain untapped unless underlying structural challenges are addressed.
Four key priorities for reform
The report outlines four key priorities for reform that industry leaders say are essential to unlocking the sector’s full potential and helping deliver long-term, inclusive growth across the UK economy.
- Fairer and more proportionate regulation: 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), and further promotion of the sector’s positive contribution.
- Embracing innovation and smarter compliance: The sector is increasingly focused on how emerging technologies like AI can enhance client outcomes. With further support to manage compliance costs and strengthen firms’ investment capabilities, there is significant potential for growth. The government can play a key role by supporting incentives that boost investment and broaden retail participation in financial markets.
- A clearer, more stable tax environment: There is a valuable opportunity to build greater confidence by providing more certain and predictable tax policies and clearer direction. A well-signposted tax roadmap and targeted incentives would encourage long-term saving and wealth-building, attract global capital, and support early-stage UK business growth.
- Strengthening financial literacy: A persistent and critical gap in financial literacy remains a key concern for industry leaders. Improving financial literacy can unlock greater engagement with advice and better decision-making. This can involve embedding financial education across the curriculum and promoting public awareness.
Liz Field, Chief Executive at PIMFA, 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.”
Eric Leenders, Managing Director of Personal Finance at UK Finance, added: “This report provides a clear roadmap for how the wealth management and private banking sector can partner with 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.”
Daniel Barry, Partner at KPMG UK, said: “While recent government and regulatory initiatives to promote the sector’s growth and competitiveness are welcome, the report highlights the need to do more. But this isn’t just about driving economic growth, it’s about supporting individuals to achieve their financial goals. 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.”
The Lord McNicol of West Kilbride, Iain McNicol, commented on the launch of the paper, saying: “The Private Banking and Wealth Management sector is a major contributor to UK economic growth. It boosts productivity and prosperity, and as such has a vital role to play in advancing the government’s growth agenda. So I’m delighted to see this report put forward a constructive set of proposals for how the sector can contribute further, and to commit to working closely with the government to make this growth a reality.”
The findings of the report suggest a sector that is both ambitious and aligned with the country’s broader growth agenda, ready to partner with government, regulators and the public to build a more inclusive, resilient and prosperous financial future.
ENDS
NOTES TO EDITORS:
Methodology
PIMFA, UK Finance, and KPMG UK engaged Chief Executives and Board-level representatives from 19 firms that constituted a broad cross-section of the Private Banking and Wealth Management sector, including wealth managers, financial advisers, financial planners, distributors (including platforms), and private banks.
The information gathered from interviews with each stakeholder has been anonymised and aggregated into the views expressed in the paper. This has been supplemented with additional publicly available data and observations, as well as proprietary research from PIMFA, UK Finance, and KPMG UK.
The views, opinions and proposed actions and approaches expressed herein are those of PIMFA, UK Finance and their members and do not necessarily represent the views and opinions of KPMG.
About PIMFA
The Personal Investment Management & Financial Advice Association (PIMFA) is the trade association for firms that provide wealth management, investment services and financial advice.
Our members offer a range of financial solutions, including financial advice, portfolio management, and investment and execution services. They assist individuals, families, charities, pension funds, trusts, and companies. Our sector manages £1.65 trillion in private savings and investments and employs over 63,000 people.
Further information is available at: www.pimfa.co.uk
About UK Finance
Representing 300 firms, we are a centre of trust, expertise and collaboration at the heart of financial services. Championing a thriving sector and building a better society. The financial services industry plays a vital and often underappreciated role in enabling individuals, families and communities to achieve their ambitions in a safe and sustainable way – through home ownership, starting a new business or saving for retirement.
The sector is fundamental to people’s lives, and we are proud to promote the work it is doing to support customers and businesses up and down the country. Whether it is through innovating for the future, driving economic growth, helping struggling customers amid increases in the cost of living, fighting economic crime or working to finance the net zero transition – the industry is having an overwhelmingly positive effect on the lives of people across the UK and improving the society we live in.
Further information is available at: www.ukfinance.org.uk
About KPMG
KPMG LLP, a UK limited liability partnership, operates across the UK with approximately 17,000 partners and staff. The UK firm recorded a revenue of £2.99 billion in the year ended 30 September 2024.
KPMG is a global organisation of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 143 countries and territories with more than 275,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.
