Fidelity International reacts to Leeds Reforms and Mansion House speech

Unsplash 16/07/2025

James Carter, Head of Platform Policy at Fidelity International, has responded to the UK Government’s plans to unlock retail investment. He highlights the pressing need to close the investing gap that continues to prevent millions of savers from reaching their long-term financial goals.

“We know that millions of savers are missing out on opportunities to achieve their long-term financial goals by not investing. This investing gap is real and will create significant issues for individuals over the coming decades if we do not address this. 

This requires bold action to shift the national mindset from saving to investing. While the Government’s measures announced today to unlock retail investment are a step in this direction, we need far bolder action and structural reform in order to inspire the necessary change in behaviour.” 

  Unlocking retail investment 

“We know that simplicity, certainty and confidence in the systems are the main drivers for retail investments. Too many people are deterred from retail investing because they perceive it as risky, showing a lack of understanding or awareness of how to consider their time horizon.   

The capital markets are the engine of the UK’s economic future. The benefits of participation in the building and running of that engine should be as accessible and widespread as possible. For Fidelity, renewing the link between UK savers and UK capital markets is key to that.” 

Risk Warnings 

“Collectively, we all need to do more to educate society on risk and return, and we welcome the Government’s plans to review risk warnings on investment products to help people understand their capacity for investment risk alongside the benefits investing can bring. 

We believe that risk warnings on investment products need reform across all asset classes to focus on informing – not just warning. This means empowering consumers by explaining what different types of risk mean and how taking some risk can lead to better outcomes over time. Research shows that traditional risk warnings like “Capital at Risk” can put off some people from investing, but when explained in more balanced terms customers, especially women, felt more engaged.” 

ISA reform 

“Much of the public debate in recent weeks has been about cash savings versus investing, losing sight of the overriding aims of improving consumer outcomes. There is a place for both cash and investments in our financial lives.  

Whilst ISA products, particularly Cash ISAs, are well used by consumers we believe that the entire UK ISA regime should be reviewed with the aim of simplifying it and ensuring that is structured to support consumers’ short and long term financial needs.  

We have advocated for the consolidation of different types of ISA, instead moving towards the creation of a single ISA with one overall annual subscription limit, allowing consumers to save and invest within a single product while helping remove the friction that exists as a barrier.”  

Plans to allow Long Term Asset Funds to be held in Stocks and Shares ISAs next year 

“We believe there is a compelling investment case for offering retail consumers access to private assets.  For investors with a longer-term investment horizon, similar to pension scheme members, there are opportunities for enhanced returns and portfolio diversification through sectors not available in public markets.  

While we welcome the Government’s decision to allow Long Term Assets Funds in a Stocks and Shares ISA, there are further regulatory and operational considerations to work through, in terms of platform dealing capabilities and ensuring adequate consumer protection and education.” 

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