The Chancellor’s Summer Mansion House speech set the tone for a new phase in UK financial services. The Financial Services Growth and Competitiveness Strategy promises to loosen a number of rules, from easing bank ring-fencing requirements to simplifying reporting obligations and modernising accountability frameworks.
The idea is to take the brakes off the sector, removing what’s been described as “a boot on the neck of business”, and to encourage a more confident, informed approach to risk-taking. The government’s stated goal is ambitious: to re-establish the UK as the world’s leading financial services hub by 2035.
There’s been plenty of interest brewing internationally, especially from US private equity firms, so this shift comes at a time when confidence in the market needed a boost. But what does it all mean in practical terms, and how might it affect you?
Hitting reset after years of restriction
Since the chaos of the 2008 financial crash, regulations have been steadily tightened to avoid a repeat. While well-intentioned, these ever-stricter rules have gradually created friction for businesses and investors alike.
When you add post-Brexit regulatory divergence into the mix, it’s no surprise that many international players have been reluctant to commit to the UK. Even retail investors were affected: tighter rules around personal financial advice led many major banks to shut down their in-house advisory teams altogether, leaving a lot of everyday investors without support, and therefore out of the market.
This new deregulation package offers a rare chance to reset and rebuild, refreshing the UK’s position on the global finance stage and reconnecting with overseas partners and investors.
Where the benefits lie
Boosting overseas investment:
For international firms, the changes will make the UK a far more appealing base. They’ll have access to a more straightforward regulatory framework than the EU offers, while still being right on its doorstep.
US private equity funds, in particular, are already looking for ways to deploy capital here. With political uncertainty and limited opportunities in the saturated US market, many are eager to diversify, and this deregulation makes the UK even more attractive.
Take Parthenon’s recent investment in Titan Wealth, its first move into a UK platform. This type of deal signals that others are likely to follow suit, bringing a wave of international investment into UK firms.
Opening doors for UK companies:
For UK businesses, this could unlock fresh opportunities too. US investors often bring expertise, networks, and routes into new markets. With them on board, you may find it far easier to expand internationally or explore new product offerings than if you were going it alone.
Benefits for individual investors:
On the consumer side, you could see a knock-on effect in the way personal financial advice is provided. These changes aim to rebalance the risk involved in giving advice, making it simpler for ordinary people to get back into investing, not just saving.
That matters because, over a 20-year period, investments typically return over four times more than a savings account. This shift could help rebuild the nation’s retirement pots while channelling more money into UK businesses, creating a powerful cycle:
people invest → businesses grow → overseas capital flows in → wealth increases → more investment follows.
How to prepare your business
If you’re thinking about selling your firm, seeking investment, or planning for the next growth stage, now’s the time to get ready.
Start by being clear about what you want: Do you want to exit completely and retire? Are you looking for strategic investment to take your business to the next level? Or are you planning a gradual exit, leaving a lasting legacy? Once you’ve defined your goals, it’s easier to identify the right advisers and focus on the value drivers that will matter most to buyers or investors.
It’s also crucial to capture and showcase the unique qualities that make your business successful. In financial services, your people are often your biggest asset, and the relationships they’ve built with loyal clients are central to your value. Make sure you can clearly articulate this and ensure any future buyer or investor is committed to protecting your team and clients post-transaction.
A moment of real opportunity
With an enormous amount of deal activity in the sector already, there’s a growing sense of optimism that a loosening of regulations could mean the UK financial services sector is on the brink of something even bigger. With US interest growing fast, and regulatory barriers starting to lift, now is the moment to position yourself and your business to take advantage.
If you prepare well, and are clear on the priorities for you, your business, your team, and your clients, these changes could open the door to exciting partnerships, investment, and long-term growth, not just for your company, but for the UK economy as a whole.
By Paul Joyce
LAVA Partner
