Investment Association backs UK financial reforms speech

The Investment Association has responded to the Chancellor's Mansion House speech, highlighting its support for proposed reforms in the UK financial services sector.

Karen Northey, Director of Corporate Affairs at the Investment Association, commented: "The Chancellor has set out an ambitious agenda to ensure the UK's financial services sector continues to flourish and play its role in delivering economic growth. Our industry strongly supports her commitment to recalibrate risk and acknowledgement of the importance of investment to grow the economy."

Northey underlined the importance of the new remit letters to the regulator, which stress growth and competitiveness. She stated, "The FCA's secondary objective is central to ensuring the UK remains a world-leading centre — not just for investment management — but for innovation and wellbeing of all, and we are pleased to see the Chancellor recognise that appropriate risk in the system is a positive and growth-oriented necessity."

In her remarks, she emphasised the need for the UK to remain an attractive location for companies. "We want to ensure the UK remains an attractive place for companies to list, invest and do business. This requires a rebalancing of attitude towards risk," Northey explained.

She pointed to proposals aimed at broadening access to private markets and plans to elevate the UK as a prominent hub for green finance, calling these "a positive shift towards a growth-focused mindset." Moreover, she mentioned the government's introduction of a digital gilt, aligning with recommendations from the Asset Management Task Force. "As technology continues to evolve, speed and regulatory responsiveness will be critical to the success of these initiatives," she added.

Discussing the impact on pensions, Northey stated, "Ensuring our pensions system is fit for purpose will be mission critical in securing the financial futures of millions across our country. The proposals to further consolidate both the LGPS and DC master trusts are an important step." She highlighted the need for "sophisticated scale" by prioritising strong governance, accountability, and investment expertise to yield the best outcomes and value for savers. "With an ambitious approach, this could channel more pensions capital into fast-growing businesses and infrastructure projects," she concluded.

Northey described the day's announcements as the beginning of "a bold reform programme," stating, "Today's announcements mark the welcome start of a bold reform programme and we believe even more can be achieved." She expressed the Association's intention to "continue to engage with government over the coming months, to help establish a culture of inclusive investment and create a world-leading economy and investment management sector."