This year has been characterised by major transformative events, altering economic, political and societal landscapes around the globe. From significant political shifts to changes in economic policy, let’s look back on some of the highlights and major acquisitions that impacted the financial industry in 2024!
January
- Finli Group acquired Clark Gilmore in Scotland adding assets £815m
This strategic acquisition strengthens Finli Group’s presence in Scotland, bolstering its asset management portfolio.
February
- Nucleus acquired Third Financial (Platform) adding assets of £6bn
The deal marks a significant expansion for Nucleus, enhancing its technology capabilities and asset reach.
March
- 7IM acquired Eastcote WM in Solihull adding assets of £430m
This move broadens 7IM’s client base in the Midlands, reinforcing its wealth management offerings.
April
- IFCA Fee Hikes
In April, the FCA confirmed plans to increase minimum and flat fees as well as application fees in 2024/2025, with larger firms seeing a 4.9% increase and smaller firms expected to pay an increased minimum fee of £1750 after it was frozen at £1500 in 2023. The hikes sparked widespread debate with concerns that smaller firms could face disproportionate burdens under the new increases. However, the FCA defended its decision, citing the importance of funding consumer protection amidst evolving risks.
- Titan Wealth acquired Loveday & Partners in Norwich adding assets of £430m
This acquisition strengthens Titan Wealth’s regional presence and enhances its client service capabilities.
May
- My Pensions Expert acquired Tenet&You in Leeds adding assets of £490m
The deal solidifies My Pensions Expert’s foothold in Northern England, expanding its pensions advisory offerings.
- Cannacord Genuity acquired Cantab Asset Management in Cambridge adding assets of £900m
This acquisition represents a significant addition to Cannacord’s UK footprint, with a focus on high-net-worth clients.
June
- Succession Wealth acquired London Wall Partners, London adding assets of £800m
The acquisition supports Succession Wealth’s growth ambitions in the capital, with a focus on bespoke wealth planning.
July
- UK General Election – Labour Takes Power
The UK witnessed a political shift as the Labour Party, led by Keir Starmer, emerged victorious from the general election in July. The result was not a surprise to many, and this was reflected in the mild response from the financial markets with the pound barely moving at all and the demand for UK bonds even rising slightly. The Labour victory marked the end of 14 years of Conservative government.
- Skerritts acquired Black Swan Financial Planning, London (£540m) and KMG Independent and KMG Investment Management in Horley (£400m)
The dual acquisitions mark a significant step for Skerritts, strengthening its position in the London and Southern UK markets.
September
- Wren Sterling acquired In Focus Group in Fareham adding assets of £450m
This acquisition enhances Wren Sterling’s regional presence and expands its wealth advisory network.
October
- Brooks Macdonald acquired Lift in Manchester adding assets of £1.6bn
The deal significantly boosts Brooks Macdonald’s scale in the North, adding expertise in financial planning and investment management.
- Foster Denovo acquired 80Twenty in Leicestershire adding assets of over £500m
This acquisition aligns with Foster Denovo’s growth strategy, strengthening its offering in the Midlands region.
- Autumn Budget
Rachel Reeves unveiled her budget at the end of October, a momentous occasion not least for being the first budget from a female Chancellor, and the first budget from a Labour Government in 14 years. The major takeaway for business owners was the promise of impending increase to Capital Gains Tax with the higher rate increasing from 20% to 24% and the lower increasing significantly from 10% to 18%. Other changes include a limit of £1m for 100% BPR and ARP, the bringing of unused pension funds and death benefits payable into a person’s estate for IHT purposes, and minimum wage increases.
November
- American Election: Trump’s Return
Across the Atlantic, the US Presidential Election saw the return of Donald Trump to the Oval Office. Trump’s return signals major shifts in US domestic and foreign policy, with Trump’s protectionist stance and potential policy changes sure to have significant impact on the global market.
- Advanta Solutions acquired City Financial Planning in Bath & Exeter adding assets of £800m
This acquisition strengthens Advanta’s footprint in the Southwest, bolstering its financial planning expertise.
- Succession Wealth acquired True Wealth Group in Leeds adding assets of £1.1bn
The deal marks another milestone for Succession Wealth, reinforcing its position as a leader in wealth management in the North.
December
- Shackleton acquired Save & Invest, Fleming Financial, Robson Lister, and Shorts Financial Services across various locations adding assets of £1.5bn
This multi-firm acquisition underscores Shackleton’s commitment to scaling rapidly, with an emphasis on diversified client offerings.
Looking Ahead in 2025
With 2024 drawing to a close, what might be on the horizon in 2025?
Policy Uncertainty
After half of the world’s population voted in 2024, the coming year is shaping up to be a year of policy uncertainty. Forthcoming decisions by new governments could heighten market volatility. Former President Donald Trump’s successful bid to return to the White House means geopolitical, trade, and fiscal policy choices are all in play and are likely to be the most impactful election outcomes for the global agenda. The 2025 election calendar appears lighter, with less than 15% of the global population going to the polls next year (see chart).
Forthcoming decisions by new governments could heighten market volatility. Former President Donald Trump’s successful bid to return to the White House means geopolitical, trade, and fiscal policy choices are all in play and are likely to be the most impactful election outcomes for the global agenda. The 2025 election calendar appears lighter, with less than 15% of the global population going to the polls next year (see chart).
Affects of Tariffs on Markets
Tariffs could affect markets, though regional nuances and other policies will determine the extent of their impact. The potential for disruption was demonstrated by President-elect Trump’s recent announcement of a 25% tariff on Mexican and Canadian goods and an additional 10% tariff on China, which sparked a flight to safety that sent the U.S. dollar and gold prices higher and European equities lower. Myriad of possible scenarios, including retaliatory actions, complicate the market’s ability to price the risk; however increased short-term inflation is likely in the U.S. (where it is likely this will mean fewer rate cuts in 2025). Forecasting the effect of tariffs is complicated, as their impact on the market will depend on various domestic policies. While time will tell what proposals are adopted, market volatility should be expected
Impact of UK budget on interest rates and inflation
UK budget to keep inflation and interest rates higher for longer, says OECD. UK inflation and interest rates are likely to fall by less than expected over the next two years after Rachel Reeves’ budget delivered significant spending and borrowing.
The Organisation for Economic Co-operation and Development (OECD) said it now expects interest rates to drop to 3.5% by the start of 2026, down from currently 4.75%.
It also predicted headline inflation of 2.7% for 2025 after previously pointing towards a rate of 2.4% for the year. Inflation is then expected to fall to 2.3% in 2026, but will still remain above the Bank of England’s 2% target.
AI in Acquisitions and Financial Services
Already, we are seeing AI begin to take a role in Acquisitions and the Financial Services Market and it’s development is expected to continue in 2025. Currently, we are seeing AI used internally within firms to support Advisors in administrative duties. However, a shift towards customer facing use is surely not far away. AI is expected to find a use in powering customer relationship management systems, supporting the development of hyper-personalised recommendations and portfolio strategies. Robust development of AI in other areas such as the due diligence process is anticipated to enable faster and more accurate assessments for financial advisors, freeing more of their time to dedicate to their clients.
Changes to BADR: April 2025
In April 2025, the proposed changes to BADR outlined in the autumn 2024 budget will begin to take effect. Rates will increase from 10% up to 14% in 2025/26, with further increases leading to a rise of 80% on the current relief rate in 2026/27. Consider your options now! Deals are possible before April 2025 and we urge you to contact your broker to get initial discussions underway before you are required to pay more.
FCA Consolidator Review
The FCA is set to conduct a thorough review of consolidators in 2025. This long-anticipated review will ensure consolidation practices are aligned with the Consumer Duty framework with a focus on value for money, transparency and client outcomes. It will be crucial for firms to ensure they are demonstrating clear client benefits and be able to justify the processes and practices they undertake. However, it is thought that the FCA will prioritise maintaining the current framework as consolidation can simplify the oversight process. By concentrating activity within few, larger firms, the regulator can focus on monitoring key players as opposed to multiple, dispersed businesses.
Considering selling your IFA business in 2025? Why not get in touch to discuss your options!
Contact us on IFA Acquisitions or Call Us on 0208 0044 162