Published : Dec-2018
No. of Pages : 34
1. EXECUTIVE SUMMARY 1
1.1. The UK wealth market continues to see M&A and digital demand 1
1.2. Key findings 1
1.3. Critical success factors 1
2. THE UK WEALTH MANAGEMENT MARKET STRUCTURE 7
2.1. UK wealth managers use a wide range of business models 7
2.2. Family offices and private banks keep investment thresholds high 8
2.3. Wealth managers are concentrated in London and the South East 9
2.4. The leading UK wealth managers continue to expand 11
2.4.1. St. James's Place continues to expand and attract client assets 12
2.4.2. Barclays focuses on investing in digital platforms 12
2.4.3. Canaccord Genuity grew the most due to acquisition 12
2.4.1. Kleinwort Hambros assets shrank by over 8% 12
2.4.2. Discretionary investment thresholds remain stable among the top 20 13
3. REGULATORY TRENDS 15
3.1. MiFID II and the GDPR are now in force 15
3.1.1. MiFID II came into effect in January 2018 15
3.1.2. MiFID II forced firms to consolidate and find ways to reduce costs 15
3.1.3. Not all firms have kept to compliance deadlines 16
3.1.4. UK firms are less concerned about the GDPR than their European peers 16
3.2. Advice suitability remains a major focal point for the FCA 17
3.2.1. The FCA's research found that consumers are happy with advice received following FAMR 17
3.2.2. The FCA has highlighted suitability failings in robo-advice 18
3.2.3. The FCA is focusing on open-ended funds investing in illiquid assets 18
3.3. The FCA is working closely with the industry to support innovation 19
3.3.1. The FCA has tested a fourth cohort of businesses in its regulatory sandbox 19
3.4. Poor customer protection and bad advice will result in fines 19
3.4.1. The largest fine in 2018 was for failing to protect consumers against cyber attacks 19
4. COMPETITIVE TRENDS 21
4.1. UK competitors remain active in the M&A space 21
4.1.1. Lloyds Bank and Schroders formed a joint venture to target the retail market 21
4.1.2. Lack of scale led to Rathbone Brothers acquiring Speirs & Jeffrey 22
4.1.3. Standard Life wants to grow its advice business by the acquisition of IFA Cumberland Place Financial Management 22
4.1.4. Smaller firms are acquiring more and faster 23
4.1.5. Wealth managers are also growing organically, strengthening their regional presence 23
4.2. New entrants remain predominantly digital players 23
4.2.1. New robo-advice platforms are entering the UK wealth management space 24
4.3. Product and service innovation is centered around the digital space 25
4.3.1. Traditional wealth managers are responding to the demand for digital advice 25
4.3.2. Digital wealth management platforms are integrating with banks and payment apps 26
4.3.3. Robo-advisors acknowledge the need for human interaction 26
4.3.4. Socially responsible investments are growing in popularity 27
5. APPENDIX 28
5.1. Abbreviations and acronyms 28
5.2. Definitions 28
5.2.1. Affluent 28
5.2.2. HNW 28
5.2.3. Liquid assets 29
5.2.4. Mass affluent 29
5.3. Methodology 29
5.3.1. Global Data's 2018 Global Wealth Managers Survey 29
5.3.2. GlobalData's 2017 Wealth Managers Survey 29
5.3.3. GlobalData's UK Investor Survey 29
5.3.1. GlobalData's 2018 IFA Survey 30
5.3.1. Global Wealth Model methodology 30
5.3.2. The UK sub-model 30
5.3.3. Further sub-division of the UK wealth market 30
5.3.4. PAM UK data 30
5.4. Bibliography 31
List of Tables
Table 1: Different types of UK onshore wealth management providers 8
Table 2: Competitors with the highest investment thresholds (discretionary portfolios), 2017 9
Table 3: Liquid assets held and percentage of HNW clients' assets by region, 2017 10
Table 4: Top 20 UK wealth management firms by AUM (£m), 2016-17 13
Table 5: Minimum investment thresholds across the top 20 competitors 14
Table 6: Selected fines imposed by the FCA in 2018 20
Table 7: Selected wealth managers' M&A activity, October 2017-October 2018 22
List of Figures
Figure 1: The top 20 wealth managers by total AUM are concentrated in London and the South East 11
