Summary
Since the introduction of the Retail Distribution Review (RDR) in 2012, the UK wealth management competitive landscape has undergone a steady evolution. New business models have emerged as both new and established players seek ways to address the range of financial demands of retail, mass affluent, and cost-conscious high net worth (HNW) individuals. Several digital platforms have launched in the UK market in 2016, ranging from extensions of traditional wealth managers to robo-advisors. With the Financial Conduct Authority (FCA) addressing issues of regulated technology and improved communication, initiatives will continue to develop going forward.
Key Findings
- UK wealth manager activity is concentrated in London and South East England. This is unsurprising, as these regions are home to nearly a third of all UK-based HNW individuals.
- The market leader in terms of assets under management (AUM) is St. James's Place, followed by Coutts and Barclays. The AUM of the top 20 UK wealth managers grew by over 8% year-on-year between 2014 and 2015.
- The advice market continues to be a key focus for the FCA, which introduced a series of proposals in March 2016 to improve access. One such proposal centers around an 'Advice Unit' to help grow the automated advice market in the UK by helping firms develop mass-market automated advice models.
- Merger and acquisition (MandA) activity has largely been driven by established players wanting to capture greater market share or expand their client offerings. For example, Aegon acquiring Cofunds from Legal and General and Cazenove Capital Management acquiring the wealth management business of C. Hoare and Co.
- To resonate with audiences who prefer digital-only solutions and simplified advice, the robo-advice market in the UK grew with new entrants Wealthify and Munnypot.
Synopsis
“Wealth in the UK: Competitive Dynamics 2016” analyzes the UK wealth management market, with a focus on the top 20 competitors and the HNW investor segment. The report is based on analysis using Verdict Financial's 2016 Global Wealth Managers Survey and Verdict Financial's UK Regional Wealth Markets Analytics.
Specifically the report includes:
- An overview of the top wealth managers in the UK based on business model and minimum investment thresholds and ranking based on AUM.
- Recent news related to regulations that pertain to wealth managers. This includes improved communication with consumers, investors with non-domiciled status, technology, and Brexit's impact on regulation.
- Insight into recent MandA activity, new entrants to the UK market, and divestment activity.
- Product and service innovations, including automated services and personalized offerings.
Reasons To Buy
- Identify the top 20 wealth managers in the UK by AUM and minimum investment thresholds.
- Gain insight into MandA activity and organic growth for both new entrants and incumbents.
- Understand changes made to UK regulations related to MiFID, consumer communication, and technology.
- Learn about recent product and service innovations among traditional wealth managers.
- Understand the growth within robo-advice services.
