Responding to the Government’s consultation on Financial Services Growth and Competitiveness Strategy, the Investment Association (IA) representing the UK investment management industry, has outlined ambitious plans for future growth to support the UK economy and improve individuals’ financial resilience.
Over the next ten years, in partnership with government and regulators, the industry will aim to increase the number of people holding an investment product from just over 20% of the UK population to 75% – matching the number who hold a cash savings account today. Achieving this will deliver a new culture of inclusive investment empowering ordinary people to access capital markets and improve their financial resilience.
Ensuring that the UK has a fully inclusive investment environment which enables the broadest range of people possible to confidently invest to grow their long-term financial security should be an additional objective in the Strategy. This includes more effective financial education, and ensuring the advice and guidance market continues to evolve so that more people can receive professional support to invest productively and secure their financial futures.
The industry will also aim to increase its export earnings by nearly 50% from £11.7 billion to £15 billion a year, over the next decade. This will build on the current success of the industry, which is the second largest global hub for investment management after the US, responsible for 6.7% of the total export of services from the UK, as well as a key investor in UK companies and infrastructure.
Chris Cummings, CEO of the Investment Association, said: “A new partnership between Government, regulators and industry, as part of the modern industrial strategy, is urgently needed to help deliver a more dynamic economic environment. The shift towards a more risk-on, growth mindset is the first step in achieving this, but we must be ambitious if we’re to deliver real sustainable growth and greater financial resilience for UK households. That’s why we have outlined two clear aims, to significantly boost the number of people investing, so that the benefits of investment can be felt across the economy, and to grow our industry’s export earnings.”
