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.

Romin Dabir, Partner and Regulation Expert at Reed Smith, noted the importance of balancing risk and protection:

“Risk taking should be encouraged, but only when it is done responsibly. Recognising that there will always be a degree of tension between the regulator’s responsibility for growth and protecting consumers is also essential.”

“Put simply, if we cut too much and too quickly, we’ll only see regulators being accused of being asleep at the wheel in the event another financial crisis hits,” Dabir added.

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.