How will the Chancellor's Mansion House speech impact the IFA market?

The Chancellor’s Mansion House speech on 15 July 2025 outlined a vision for revitalising the UK economy through sweeping financial reforms, ranging from regulatory rollbacks to pension fund consolidation and investment-led growth strategies. 

Dominic Thackray, of MHA Wealth, welcomes the Government’s intention to stimulate investment and improve access to financial advice but urges caution. 

“Reeves is opting for the carrot rather than the stick; overall a positive view of aiming to unlock investment in the UK. Reduction in regulation stifling the financial sector and improving Financial Advice accessibility for those that would benefit, and empowering banks to encourage savers to invest. One thing should be clear when the Government is issuing this message, given the distributors of investments are required to as well; investments aren’t suitable for everyone, and capital is at risk, meaning better returns are not guaranteed.

"Reeves is trying to sell Britain - changes to listing regimes, simplifying share ownership, digitisation, consolidating pension funds, producing financial agreements between other countries and the Leeds Reforms being introduced to sweep away regulation. 

"Regulate for growth, not for risk – a bold statement given the roles of regulators are there to protect consumers, and you only have to search ‘Bernie Madoff’ to understand why strict regulation is in place for financial and investment services, and ‘Lehman Brothers’ to understand why capital adequacy is important. The objective of growing investment is positive, but is Reeves trying to find a shortcut to growth in the economy

"Reeves highlighted how many pension funds signed the Mansion House accord, pushing further Defined Contribution pensions to invest the UK – though there is the view that if this wasn’t done voluntarily, it may have been mandated anyway.

Long Term Asset Funds (LTAFs) to be made available in Stocks & Shares ISAs, which are typically invested in infrastructure and private equity. Reeves has acknowledged differing views given backlash on rumours Cash ISAs were to be restricted, and while she hasn’t ruled out future changes, encouraging savers to invest in illiquid funds within Stocks & Shares ISAs with her agenda that these are used to benefit the UK economy is a little reckless. 

"A saver making their first investments should be considering accessibility of funds if needed to be sold, risk and diversification along with returns, and investing in a blend of different asset classes globally would likely be more appropriate for investors than an LTAF.”