IA lays out vision for the future of the investment management industry
The Investment Association (IA) has today outlined its vision for the future success of the investment management industry, in the UK and internationally. The industry is committed to meeting the changing demands of savers as they shoulder more of the burden of preparing for retirement, while providing the long-term investment that powers company growth and helps to finance new infrastructure.
The ‘2025 Vision’ report, launched today at the IA’s flagship annual Policy Conference, outlines three key areas of development:
- A more value-focused industry in which sustainability and stewardship are at the forefront, particularly in the context of the challenge of global climate change. Greater clarity of approach in the area of sustainable investment will be a critical foundation. More consistent definitions, labelling and disclosure will help customers navigate this new landscape with confidence.
- A dynamic and responsive UK investment fund regime, better designed to meet the needs of both UK and international customers. This includes the IA’s proposals to create a Long-Term Asset Fund, a new fund structure which will enable investment in a wider range of assets, thereby unlocking new long-term investment opportunities for savers and providing companies and infrastructure projects with much-needed funding.
- The greater adoption of technology to drive innovation, improve operational efficiency, lower costs to customers and protect against increasingly complex and borderless cyber threats. Through the IA’s FinTech innovation hub, Velocity, and by working with regulatory initiatives, the investment management industry is collaborating with FinTechs to find new cutting-edge solutions.
Chris Cummings, Chief Executive of the Investment Association, said:
“The investment management industry is at an inflection point. The needs of our customers are changing rapidly, societal expectations are rising and technological advances will be transformative. The IA is today setting out a series of concrete actions, building on existing initiatives that will help to ensure we can deliver in the UK and globally.
“With three-quarters of UK households using the services of an investment manager, our vision for the future is focused on our customers, ensuring they can get sustainable, long-term returns from their investments. In getting this right, we will also make sure that funding flows effectively through the economy, helping companies grow and public infrastructure to be financed, meeting the needs of future generations.”
Commenting on the proposed Long Term Asset Fund, Chris Cummings, Chief Executive of the Investment Association, said:
“The IA’s proposals to help develop a new Long Term Asset Fund will respond to changing customer needs and support the financing of companies and public projects. With the UK set to leave the EU over the next few months, these proposals will also help future proof the UK’s investment landscape, ensuring it can remain competitive on a global scale and allowing international investors to benefits from innovation in our country’s fund regime.”
In order to achieve these ambitious aims, there are three critical elements, which the trade body will work with the industry and regulator to achieve:
- A healthy culture, aligned with the needs of customers. This includes strengthened governance structures and a more diverse and inclusive workforce. An increasing body of research shows that diversity results in better decision-making and long-term financial performance.
- Better communication to ensure both transparent and effective disclosure in an increasingly digital world. The aim here is for all customers – whether advised or not – to be able to access the products that best help them achieve their financial goals.
- A policy and regulatory environment that supports innovation and international competitiveness. The industry supports a well regulated environment, and proposes practical measures which build on successful FCA initiatives in recent years.
Notes to Editors:
- Long-Term Asset Fund: The new open-ended fund structure would have the ability to invest in less liquid or illiquid assets, such as property and infrastructure projects, and incorporate high standards of customer protection. It would provide an additional way for customers to invest for the long-term, alongside existing fund structures.
- To read the report, ‘2025 Vision: Delivering for customers and the economy in a rapidly changing world’, click here.
- The IA’s annual Policy Conference 2019 is one of the most influential platforms for debate about the future of investment management in the UK. This year's conference focussed on how the industry can capitalise on growth opportunities and overcome imminent challenges in a rapidly changing world. Keynote speakers included: Rt Hon Dr Liam Fox MP, Secretary of State for International Trade and President of the Board of Trade; Rt Hon Stephen Barclay MP, Secretary of State for Exiting the European Union; and Rt Hon Nicky Morgan MP, Chair of the Treasury Select Committee.
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About the Investment Association (IA):
- The IA champions UK asset management, supporting British savers, investors and businesses. Our 250 members manage £7.7 trillion of assets and the asset management industry supports 100,000 jobs across the UK.
- Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
- Our purpose is to ensure investment managers are in the best possible position to:
- Build people’s resilience to financial adversity
- Help people achieve their financial aspirations
- Enable people to maintain a decent standard of living as they grow older
- Contribute to economic growth through the efficient allocation of capital.
- The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
- The UK is the second largest investment management centre in the world, after the US and manages 35% of all assets managed in Europe.