KBS - Financial Services and Wealth Management - Market Insight

CURRENT LANDSCAPE UK individuals currently have approximately £3.3tn in liquid investable assets and the industry is predicted to grow at a CAGR of 7%. The amount of assets overseen by wealth managers grew by 17% between 2020 and 2023. In 2024, mergers and acquisitions activity in the UK financial services sector rose significantly, marking a 26% year-on-year increase in deal volumes and reaching the highest annual level since 2012. UK wealth and asset management deals increased from 107 in 2023 to 122 in 2024, with the total publicly disclosed deal value rising substantially from £2.1bn in 2023 to £9.3bn in 2024. UK firms acquired 97 overseas targets in 2024, an increase from 65 in 2023, although the total deal value remained stable at £1.7bn. Non-UK firms acquired 74 UK companies, an increase from 54 in 2023, although total deal value dropped to £3.9bn. Regulations play a pivotal role in asset management. The Consumer Duty was introduced in June 2023 by the FCA (Financial Conduct Authority). This has put pressure on smaller firms, due to high compliance costs, to sell their businesses to larger ones, increasing M&A activity.

UK individuals currently have approximately £3.3tn in liquid investable assets and the industry is predicted to grow at a CAGR of 7%.