The UK government has introduced a set of reforms called the
“Leeds Reforms,” aimed at increasing retail participation in
financial markets. These measures form part of a broader plan to position the
UK as a leading global financial services centre by 2035.
The initiatives seem to align with actions by IG, a UK-based
trading and investing platform, which has
launched a campaign titled “Save Our Stock Market”. The campaign
urges the public and government to reconsider the nation’s heavy reliance on
cash savings. The initiative features a short film with former Wimbledon
champion Pat Cash.
Focus on Shifting Savings Towards Investments
The reforms were announced at a summit in Leeds. They focus
on encouraging households to move savings from low-yield cash accounts to
higher-return investment products. This comes in response to the UK having the
lowest level of retail investment among G7 countries.
Statistics Highlighting Savings and Investment Returns
Government estimates show that over 29 million UK adults
hold funds in low-interest accounts, with average returns around 1%. In
contrast, stocks and shares have averaged about 9% annual return over the past
decade. According to these figures, a £2,000 investment in equities today could
grow to £12,000 over 20 years, compared to £2,700 in a 1.5% interest cash
account.
FCA’s “Targeted Support” Regime and Consumer
Protection
To support this shift, the Financial Conduct Authority will introduce a “Targeted Support” regime from April 2026. This will
allow banks to notify customers with idle cash about potential investment
options. The FCA will also review risk warnings on financial products to
improve consumer understanding.
You may find it interesting at FinanceMagnates.com: UK
to Consider Lifting Ban on Retail Access to Crypto Exchange-Traded Notes.
An industry-backed advertising campaign will be launched to
explain the benefits of investing. This campaign aims to help consumers
navigate the complex range of financial products and promote greater retail
market involvement.
ISA System Reforms and Long-Term Investment Incentives
The government also plans to reform the Individual Savings
Account system. Long Term Asset Funds will become eligible for Stocks
& Shares ISAs starting in 2026. These funds are intended to direct capital
into long-term investments like infrastructure and innovative businesses.
The UK government has introduced a set of reforms called the
“Leeds Reforms,” aimed at increasing retail participation in
financial markets. These measures form part of a broader plan to position the
UK as a leading global financial services centre by 2035.
The initiatives seem to align with actions by IG, a UK-based
trading and investing platform, which has
launched a campaign titled “Save Our Stock Market”. The campaign
urges the public and government to reconsider the nation’s heavy reliance on
cash savings. The initiative features a short film with former Wimbledon
champion Pat Cash.
Focus on Shifting Savings Towards Investments
The reforms were announced at a summit in Leeds. They focus
on encouraging households to move savings from low-yield cash accounts to
higher-return investment products. This comes in response to the UK having the
lowest level of retail investment among G7 countries.
Statistics Highlighting Savings and Investment Returns
Government estimates show that over 29 million UK adults
hold funds in low-interest accounts, with average returns around 1%. In
contrast, stocks and shares have averaged about 9% annual return over the past
decade. According to these figures, a £2,000 investment in equities today could
grow to £12,000 over 20 years, compared to £2,700 in a 1.5% interest cash
account.
FCA’s “Targeted Support” Regime and Consumer
Protection
To support this shift, the Financial Conduct Authority will introduce a “Targeted Support” regime from April 2026. This will
allow banks to notify customers with idle cash about potential investment
options. The FCA will also review risk warnings on financial products to
improve consumer understanding.
You may find it interesting at FinanceMagnates.com: UK
to Consider Lifting Ban on Retail Access to Crypto Exchange-Traded Notes.
An industry-backed advertising campaign will be launched to
explain the benefits of investing. This campaign aims to help consumers
navigate the complex range of financial products and promote greater retail
market involvement.
ISA System Reforms and Long-Term Investment Incentives
The government also plans to reform the Individual Savings
Account system. Long Term Asset Funds will become eligible for Stocks
& Shares ISAs starting in 2026. These funds are intended to direct capital
into long-term investments like infrastructure and innovative businesses.
This post is originally published on FINANCEMAGNATES.
