We may be on the verge of an era of much greater participation and engagement by some consumers, especially younger cohorts. At the same time, it is entirely possible, and even likely, that many customers will still wish to delegate decisions to trusted third parties and rely on more-established collective mechanisms.
Regardless of the exact trajectory, the investment management industry has a significant role to play in continuing to meet investor objectives, as well as changing societal expectations. In all likelihood, we will see a combination of all three scenarios, with the industry’s centre of gravity determined by the extent to which incumbents and new entrants drive innovation.
Firms clearly have a responsibility to determine their own position on this journey. At the same time, the policy and regulatory environment really matters and we therefore identify areas in which a close partnership between regulators and industry can work to boost the overall competitiveness of the UK: