UK wealth management industry "is worth GBP30 billion a
year"
30 January 2012
The UK' family wealth sector manages more than
GBP2.1 trillion in private client funds and generates as much as
one per cent of Gross Domestic Product (GDP), according to new data
from market research firm Scorpio Partnership.
The sector's annual revenues exceed GBP30
billion, and it contributes nearly GBP7.6 billion in annual tax
take for the UK Treasury, says Scorpio.
It also directly employs 124,000 professionals
- some 12.5 per cent of UK's financial services industry. Nearly 9
per cent of the UK population use these wealth management services
at one time or another. The survey found that there are 448,090
individuals in the UK who possess more than GBP500,000 worth of
investable wealth. High net worth private banks manage an estimated
GBP886 billion of these assets.
The report was commissioned by a grouping of
wealth management companies seeking to determine the total economic
contribution of the UK family wealth sector. Scorpio claims it is
the first to do so. The idea is to help the industry emphasise its
value to the UK and thus speak with a stronger and more united
voice when trying to influence government policy, for example on
regulation. A key finding of the survey was that regulation is
reducing the industry's revenues by as much as 20 per cent,
compared to the same activities in competing financial services
centres.
The detailed results will now be passed
industry leaders in the various sectors analysed, as well as bodies
including STEP, the British Banking Association (BBA), the
Association of APCIMS (APCIMS), and the regulatory authorities.
In November 2011, STEP set up a special
private wealth group to ensure the government is aware of the
importance of the private client advisory sector. "The private
wealth sector needs to have a united voice with government, and one
which encourages growth for everyone's benefit", commented STEP
chief executive David Harvey. "It is vital that governments
understand our sector brings with it a significant number of jobs,
inward investment and tax revenues. Congratulations to
Scorpio and Owen James for doing this vital work".
The group is seeking members worldwide;
contact STEP's global headquarters for more information.
• Another interesting finding was that there
are 85,128 solicitors operating in the private client legal field,
of which 9,364 deal directly with clients. This subsector generates
an annual salary income of GBP825.1 million.
Sources
Scorpio Partnership (PDF file)
Private Banker International
Citywire
STEP