Wealth in the UK: Competitive Dynamics 2016

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Published: November 01, 2016 Report Code: VF0110CI-ST

Report Overview
Key Players
Table of Contents
Table
Figures

Since the introduction of the Retail Distribution Review (RDR) in 2012, the UK wealth management competitive landscape has undergone a steady evolution. New business models have emerged as both new and established players seek ways to address the range of financial demands of retail, mass affluent, and cost-conscious high net worth (HNW) individuals. Several digital platforms have launched in the UK market in 2016, ranging from extensions of traditional wealth managers to robo-advisors. With the Financial Conduct Authority (FCA) addressing issues of regulated technology and improved communication, initiatives will continue to develop going forward.

Scope

“Wealth in the UK: Competitive Dynamics 2016” analyzes the UK wealth management market, with a focus on the top 20 competitors and the HNW investor segment. The report is based on analysis using Verdict Financial’s 2016 Global Wealth Managers Survey and Verdict Financial’s UK Regional Wealth Markets Analytics.

Specifically the report includes:

– An overview of the top wealth managers in the UK based on business model and minimum investment thresholds and ranking based on AUM.

– Recent news related to regulations that pertain to wealth managers. This includes improved communication with consumers, investors with non-domiciled status, technology, and Brexit’s impact on regulation.

– Insight into recent M&A activity, new entrants to the UK market, and divestment activity.

– Product and service innovations, including automated services and personalized offerings.

Reasons to Buy

– Identify the top 20 wealth managers in the UK by AUM and minimum investment thresholds.

– Gain insight into M&A activity and organic growth for both new entrants and incumbents.

– Understand changes made to UK regulations related to MiFID, consumer communication, and technology.

– Learn about recent product and service innovations among traditional wealth managers.

– Understand the growth within robo-advice services.

1825
Aegon
AFH Financial Group
Antarius
Arbuthnot Latham
Ashton KJ Financial Planning
Aviva
AXA Wealth
Baigrie Davies
Barclays
Bellpenny
Bessemer Trust
Brewin Dolphin
Brown Shipley
C. Hoare & Co.
Caledonia Financial Planning
Canaccord Genuity Wealth Management
Capital Generation Partners
Carson Associates
Cazenove Capital Management
Cenkos Securities Plc
Charles Stanley & Co
Clay Rogers
Coutts
Coverall Worldwide Ltd
Credit Suisse
CT Capital Ltd
Davy Private Clients
DBS
Edinburgh Investment Consultants
Edward Securities
Equilibrium Asset Management
eValue
Facts Financial
Fidelity
Firth & Scott
Goldman Sachs International
Hargreave Hale
Hargreaves Lansdown
Harwood Wealth Management
Hassium Asset Management
Hawksmoor
Holbein Partners
HSBC Private Bank
Intesa Sanpaolo
Investec Wealth & Investment
J. Stern & Co.
JP Morgan Private Bank
Kleinwort Benson
Legal & General
Lewis Chambers
LGT
Lighthouse Group
Lloyds Bank Private Banking
MAN GLG
Maze Wealth
Michael Moore Life & Pensions
Millburn Insurance Company Limited
MoneyFarm
Munnypot
Munro Partnership
Netwealth
Newedge
Nutmeg
Oddo & Cie
Old Mutual Wealth
Partners Capital
Pearl Life Holdings
Phoenix Group Holdings
Pictet & Cie
PM+M
Precision Capital
Principals in Practice
Quick Purchase Ltd
Quilter Cheviot
Rathbones
Raymond James
RBS
Rothschild
Rowan Dartington
rplan
Sandaire Investment Office
Sanlam
Santander
Saunderson House Limited
Scalable Capital
Segetia Wealth Management
SEI Wealth Managers
Seven Investment Management
The Share Centre
Smith & Williamson Investment Management
Société Générale
St. James’s Place
Standard Life
Stanhope Capital
Stifel Nicolaus
Stonehage Fleming Investment Management
Succession Group
Threadneedle Asset Management Ltd
Tilney Bestinvest
TMS
Towergate Underwriting Group Ltd
Towry
UBS Wealth Management
Unigestion
Vestra Wealth
Vision Group
W H Ireland Limited
Walker Crips
Wealth Club
Wealthify
Wren Investment Office

EXECUTIVE SUMMARY

Key findings

Critical success factors

MARKET STRUCTURE

UK wealth managers use a wide range of business models

Family offices and private banks keep investment thresholds high

Wealth managers are concentrated in London and the South East

The UK's top wealth managers continue to grow their books

Discretionary investment thresholds remain stable among the top 20

REGULATORY TRENDS

The advice market continues to be a focus of FCA regulation

The current landscape of the UK advice market is made more clear following the FCA's financial advice survey

FAMR has led to a number of proposals to improve access to advice

The FCA has also sought to improve consumer communication

Wealth managers now have more guidance on how to present information

The FCA focuses on regulatory technologies through Project Innovate

Despite Brexit, MiFID II remains on the horizon, but has been pushed back to 2018

The RDR has largely paved the way for MiFID II

The FCA continues to request stakeholder input regarding MiFID II

The permanent non-domiciled status will be terminated in 2017

Further amendments to non-domicile rules will have an impact on UK property

The FCA is increasing accountability in the financial services sector

Brexit will no doubt impact the UK financial market

Business conduct and culture are key issues in encouraging compliance

New rules on whistle blowing have been launched in 2016

Firms will have increased responsibility over their staff under the Senior Managers and Certification Regime

The largest fines in 2016 were imposed for misconduct in the wealth management and asset management markets

The FCA has published the final version of the UCITS Remuneration Code to impose new requirements for management companies and risk-taking.

Recruitment in wealth management is focused on regulation-related roles

COMPETITIVE TRENDS

M&A activity

The most notable M&A deal was Société Générale's acquisition of Kleinwort Benson

The IFA market has witnessed a slowdown in M&A activity

Major players carry out divestment activity in 2016

Organic growth and restructures

Wealth managers strengthened their regional presence

Wealth manager restructuring in 2016 centered around maximizing efficiencies

New entrants comprised international firms and robo advisors

New entrants comprised UK operations by international firms

New robo-advice platforms also enter the UK wealth management space

Product and service innovation

Wealth managers respond to demand for online platforms with a personal touch

Traditional wealth managers look to robo-advice services

Some wealth managers have launched enhanced financial planning solutions

New services have been launched to target HNW and UHNW segments

Wealth managers in the UK target expat populations

APPENDIX

Abbreviations and acronyms

Definitions

Affluent

Domicile

HNW

Liquid assets

Mass affluent

Overall methodology

Verdict Financial's 2016 Global Wealth Managers Survey

Global Wealth Model methodology

PAM UK data

Bibliography

Table

Figure 1: Different competitor models focus on different customer segments

Figure 2: The top 20 wealth managers by total AUM are concentrated in London and the South East

Figures

Table 1: The different types of UK onshore wealth management providers

Table 2: Competitors with the highest investment thresholds (for discretionary portfolios), 2015

Table 3: Liquid assets held and percentage of HNW clients' assets by region, 2015

Table 4: Top 20 UK wealth management firms by AUM (£m), 2014-15

Table 5: Minimum investment thresholds across the top 20 competitors

Table 6: Average investment threshold of the top 20 competitors, by business model

Table 7: Fines imposed by the FCA on wealth managers

Table 8: Wealth manager acquisitions, October 2015 – September 2016

Table 9: Succession Group has completed 10 acquisitions since October 2015

Table 10: Divestment activity, 2016

Table 11: UK wealth managers expanded their regional reach in 2016

Table 12: A number of companies launched in the UK in 2015 and 2016

Table 13: A number of robo-advice firms launched in the UK

Table 14: Wealth managers are targeting wealthy clients with new services

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