From the Leeds Reform to fintech innovation, the UK is betting on retail investors to restore its market competitiveness but challenges remain.

As London’s listings slump and investment outflows turn from a market concern into a national challenge, a panel “Mind The Gap: Can Retail Investors Save the UK Stock Market?” at FMLS:25, November 25-27, takes a hard look at what it will take to reignite confidence.

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Moderated by Adam Button, Chief Currency Analyst at investingLive, the panel brings together Nicola Higgs, Partner at Latham & Watkins; Dan Lane, Investment Content Lead at Robinhood; David Belle, Founder of Fink Money; and Sheryl Cuisia, Founder & CEO of The Engagement Appeal (TEA); Jack Crone, PR and Public Affairs Lead, IG.

Together, they’ll unpack the Leeds Reform, the government’s role in shifting the UK’s saver mentality, and the delicate balance the FCA must strike between flexibility and protection — all while debating what brokers and fintechs can do to get the British public investing again

Retail to the Rescue?

The UK’s listing and investment malaise has grown from a financial services problem into a national challenge.

London, once the unquestioned hub of global capital raising, has watched its competitiveness erode, with high-profile firms choosing New York, Amsterdam and Hong Kong over the London Stock Exchange.

The July 2025 Leeds Reform sought to arrest this decline, but the question now facing policymakers, regulators, brokers, and fintech innovators is whether it has gone far enough.

As the country searches for a new equilibrium, retail investors are increasingly seen as part of the solution rather than bystanders.

From the government’s efforts to promote investment to the delicate balance the Financial Conduct Authority (FCA Financial Conduct Authority (FCA) The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol The Financial Conduct Authority (FCA) is the largest financial regulator for all financial markets in the United Kingdom (UK).The UK regulator is responsible for the conduct of firms authorized under the Financial Services and Markets Act 2000. Moreover, the FCA is also responsible for the regulation of behavior in retail and wholesale financial markets, supervision of the trading infrastructure that supports those markets, and the prudential regulation of firms not regulated by the PRA. Its rol Read this Term) must strike between flexibility and protection, the UK faces a moment of truth in determining whether its capital markets can reclaim their place at the center of global finance.

However, opportunities remain in London and the wider UK, “[… ] it’s worth recognizing that the FTSE 100 has performed well this year.

However, it’s also fair to acknowledge the UK market’s consistent underperformance versus peers over the long term.

Retail investors should approach the UK like any other market - by assessing risk and reward objectively, identifying opportunities, and allocating capital accordingly,” says Elise Ash, SVP Marketing and Growth at IG Group.

The Leeds Reform: Principles vs Practice

The Leeds Reform, announced in July 2025, is a sweeping package aimed at revitalizing the UK’s financial services sector. Its key provisions include:

Unlocking Retail Investment: The UK has the lowest retail investment levels in the G7, with millions of savers stuck in low-yield cash accounts.

New measures, including FCA “Targeted Support,” ISA reforms, and the inclusion of Long-Term Asset Funds, aim to shift money into higher-return investments. The goal is to build a stronger saver-to-investor culture while funding UK businesses.

Cutting Red Tape to Attract Growth: A new concierge service will attract global firms to UK financial hubs, while looser mortgage rules and a permanent Mortgage Guarantee Scheme will help first-time buyers.

Business regulation is being streamlined, with the Ombudsman and Senior Managers Regime refocused, and the FCA reviewing its Consumer Duty for wholesale firms. The aim is to boost confidence and cut barriers to growth.

Freeing Capital for Investment: The Bank of England is raising its MREL threshold and tailoring Basel 3.1 rules to free funds for lending and investment.

Reviews of ring-fencing and bank capital requirements aim to balance competitiveness with stability. These changes should unlock more capital for the economy while maintaining regulatory safeguards.

Promoting Innovation & Fintech Leadership: The UK wants to cement its fintech leadership with start-up support, easier regulatory navigation, and expanded British Business Bank funding.

Talent is central: new schemes include a Global Talent Taskforce, the £187m TechFirst programme, and a skills compact for the financial sector. Together, these measures aim to make the UK the world’s fintech capital.

On paper, the Leeds Reform signals ambition: a recognition that bold moves are required to restore the UK’s global standing. However, the long-term impact remains to be seen.

The Leeds Reform’s success will ultimately depend not on the grandeur of its announcements but on its ability to translate into tangible market confidence, both for corporates seeking capital and individuals seeking to invest.

As Ash says, “It’s encouraging to see the government prioritizing retail investing, but the challenge now is turning words into meaningful action. So far, we’ve heard about an industry-led ad campaign - which while well-intentioned is unlikely to move the dial significantly - and a review of how investment risk is communicated, which is certainly welcome.”

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Can the Government Change the “Saver Mentality”?

A central pillar of the Leeds Reform is the government’s attempt to influence cultural attitudes toward saving and investing. For decades, the UK has grappled with low household savings rates, with many citizens either mistrustful of financial markets or unwilling to engage beyond traditional bank deposits.

The government’s strategy combines incentives and education. Tax-advantaged accounts such as ISAs remain central tools, while broader public campaigns aim to demystify investing and encourage investments.

Ministers argue that getting Britons to think of themselves not just as consumers but as long-term investors is essential to unlocking domestic capital.

But is it working? The results so far are mixed. Uptake of investment products has grown modestly, but a general sense of mistrust remains entrenched. A recent study showed that only 23% of Britons had invested in the stock market.

In an era of cost-of-living pressures, households often focus on short-term liquidity over long-term wealth building. Critics argue that without more significant tax incentives or structural reforms, the government risks preaching to the converted rather than creating a genuine cultural shift.

“[…] if we truly want to create an investing culture in the UK, we need bolder policy: better incentives to back UK stocks, the complete removal of stamp duty on share sales, and ISA rules the need to encourage more investing - with cash ISAs offering less generous allowances than stocks and shares ISAs,” says Ash.

The Role of Brokers and Fintechs

If the government sets the stage, brokers and fintechs are the obvious paths through which to bolster retail participation. The fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term revolution has already reshaped investing globally, lowering barriers to entry and creating platforms that appeal to younger, digitally native investors.

The UK’s markets need a reset

We’ve been regulating for safety, not growth — and it shows. Retail participation is at record lows, IPOs at 30-year lows, listings drifting away

A wholesale change in regulatory philosophy is needed for UK markets.

My latest @ft

🧵 pic.twitter.com/2pb0Y2fCOe

— Huw van Steenis (@huwsteenis) October 7, 2025

According to Ash, “Fintechs and digital investment platforms are already playing a huge role. The rise of low-cost, easy-access investment options has made the UK one of the most competitive markets for retail investors. Lower barriers to entry are crucial for access, but these platforms - and I include IG in this - also have a responsibility to engage, educate, and communicate investing in a way that resonates with people.”

In the UK, fintechs and brokers have a clear opportunity to step in where traditional institutions have struggled. By offering:

• User-friendly platforms that simplify investing for newcomers.
• Fractional shares and low-fee products that allow small investors to participate in high-value stocks.
• Financial education and community tools that build confidence among first-time investors.

Some firms are already experimenting with gamification, news or summaries powered by AI, and integration with banking apps. However, these innovations must walk a fine line: too much hype risks encouraging reckless speculation, while overly cautious products fail to capture the imagination of retail investors. Indeed, gamification in apps or tools is something the FCA is looking at.

The challenge for brokers and fintechs lies in building trust. To truly spur UK investment, they must bridge the gap between accessibility and responsibility, making markets appealing without fueling bubbles.

FCA: Walking the Tightrope

Looming over all of this is the role of the FCA. The regulator is charged with protecting consumers, but it also faces mounting pressure to promote innovation and competitiveness. The Leeds Reform implicitly recognizes this tension, urging the FCA to embrace flexibility without abandoning its duty of care.

The FCA’s dilemma is stark: loosen regulation too far, and risk scandals that undermine trust; clamp down too hard, and risk stifling the very innovation the UK needs to revive its markets. Finding the right balance will require nuanced policymaking, constant dialogue with industry, and a willingness to adapt as new products and risks emerge.

Recent moves toward ‘regulating for growth’ focusing on results rather than prescriptive rules, suggest the FCA is aware of the need for change. Yet questions remain over whether it has the resources and agility to keep pace with fintech innovation while maintaining rigorous oversight.

“The consensus seems to be that the UK needs to go further than what’s been proposed so far if it wants to compete globally for listings and capital. The perception of the UK as a ‘value’ market, in contrast to the US’s stronger growth bias, also plays into that."

"Unless the reforms help shift that narrative - by making the UK a more attractive home for growth-focused companies - it’s unlikely to change how global investors see the market,” says Ash.

Fears over falling stock prices are prompting UK savers to avoid investing and instead park their earnings in cash.

According to online trading platform IG, three in five savers believe retail investing is to risky, despite government and leading industry figures encouraging… pic.twitter.com/b7v71iP9sT

— City A.M. (@CityAM) September 18, 2025

A National Challenge, Not Just a Financial One

The UK’s investment crisis is no longer a matter for the City alone. It strikes at the heart of national competitiveness, economic growth, and the country’s ability to finance innovation.

The Leeds Reform is a start, but its success hinges on coordinated action: a government willing to shape culture and incentives, brokers and fintechs ready to capture new audiences, and a regulator nimble enough to balance innovation with protection.

In terms of retail investors, Ash is cautiously optimistic, “If we look at the US, a strong retail investing culture has undoubtedly supported the success of its stock market. The same could happen here if we create the right conditions."

"In June, we called for an enterprise investment-style scheme that would allow investors to claim income tax relief on UK shares held for more than three years - a practical incentive to back British businesses.”

Though, she does place any developments in context, saying, “That said, institutional capital, particularly from pension funds, will continue to play the dominant role.”

For the UK, retail investors are not a silver bullet, but they may be the missing piece in a puzzle that has eluded policymakers for far too long.