Wealth in the UK: Competitive Dynamics 2018

1.1. The UK wealth market continues to see M&A and digital demand
1.2. Key findings
1.3. Critical success factors

2.1. UK wealth managers use a wide range of business models
2.2. Family offices and private banks keep investment thresholds high
2.3. Wealth managers are concentrated in London and the South East
2.4. The leading UK wealth managers continue to expand
2.4.1. St. James’s Place continues to expand and attract client assets
2.4.2. Barclays focuses on investing in digital platforms
2.4.3. Canaccord Genuity grew the most due to acquisition
2.4.1. Kleinwort Hambros assets shrank by over 8%
2.4.2. Discretionary investment thresholds remain stable among the top 20

3.1. MiFID II and the GDPR are now in force
3.1.1. MiFID II came into effect in January 2018
3.1.2. MiFID II forced firms to consolidate and find ways to reduce costs
3.1.3. Not all firms have kept to compliance deadlines
3.1.4. UK firms are less concerned about the GDPR than their European peers
3.2. Advice suitability remains a major focal point for the FCA
3.2.1. The FCA’s research found that consumers are happy with advice received following FAMR
3.2.2. The FCA has highlighted suitability failings in robo-advice
3.2.3. The FCA is focusing on open-ended funds investing in illiquid assets
3.3. The FCA is working closely with the industry to support innovation
3.3.1. The FCA has tested a fourth cohort of businesses in its regulatory sandbox
3.4. Poor customer protection and bad advice will result in fines
3.4.1. The largest fine in 2018 was for failing to protect consumers against cyber attacks

4.1. UK competitors remain active in the M&A space
4.1.1. Lloyds Bank and Schroders formed a joint venture to target the retail market
4.1.2. Lack of scale led to Rathbone Brothers acquiring Speirs & Jeffrey
4.1.3. Standard Life wants to grow its advice business by the acquisition of IFA Cumberland Place Financial Management
4.1.4. Smaller firms are acquiring more and faster
4.1.5. Wealth managers are also growing organically, strengthening their regional presence
4.2. New entrants remain predominantly digital players
4.2.1. New robo-advice platforms are entering the UK wealth management space
4.3. Product and service innovation is centered around the digital space
4.3.1. Traditional wealth managers are responding to the demand for digital advice
4.3.2. Digital wealth management platforms are integrating with banks and payment apps
4.3.3. Robo-advisors acknowledge the need for human interaction
4.3.4. Socially responsible investments are growing in popularity

5.1. Abbreviations and acronyms
5.2. Definitions
5.2.1. Affluent
5.2.2. HNW
5.2.3. Liquid assets
5.2.4. Mass affluent
5.3. Methodology
5.3.1. 2018 Global Wealth Managers Survey
5.3.2. 2017 Wealth Managers Survey
5.3.3. UK Investor Survey
5.3.1. 2018 IFA Survey
5.3.1. Global Wealth Model methodology
5.3.2. The UK sub-model
5.3.3. Further sub-division of the UK wealth market
5.3.4. PAM UK data
5.4. Bibliography

Table 1: Different types of UK onshore wealth management providers
Table 2: Competitors with the highest investment thresholds (discretionary portfolios), 2017
Table 3: Liquid assets held and percentage of HNW clients’ assets by region, 2017
Table 4: Top 20 UK wealth management firms by AUM (£m), 2016-17
Table 5: Minimum investment thresholds across the top 20 competitors
Table 6: Selected fines imposed by the FCA in 2018
Table 7: Selected wealth managers’ M&A activity, October 2017-October 2018

Figure 1: The top 20 wealth managers by total AUM are concentrated in London and the South East