From the Leeds Reform to fintech innovation, the UK isbetting on retail investors to restore its market competitiveness butchallenges remain.As London’s listings slump and investment outflows turn froma market concern into a national challenge, a panel “Mind The Gap: Can RetailInvestors Save the UK Stock Market?” at FMLS:25, November 25-27, takes a hard look at what itwill take to reignite confidence. JoinIG, CMC, and Robinhood in London’s leading trading industry event!Moderated by Adam Button, Chief CurrencyAnalyst at investingLive, the panel brings together Nicola Higgs, Partner atLatham & Watkins; Dan Lane, Investment Content Lead at Robinhood; David Belle,Founder of Fink Money; and Sheryl Cuisia, Founder & CEO of The EngagementAppeal (TEA); Jack Crone, PR and Public Affairs Lead, IG.Together, they’ll unpack the Leeds Reform, the government’s rolein shifting the UK’s saver mentality, and the delicate balance the FCA muststrike between flexibility and protection — all while debating what brokers andfintechs can do to get the British public investing againRetail to the Rescue?The UK’s listing and investment malaise has grown from afinancial services problem into a national challenge. London, once theunquestioned hub of global capital raising, has watched its competitivenesserode, with high-profile firms choosing NewYork, Amsterdamand HongKong over the London Stock Exchange. The July 2025 Leeds Reform sought toarrest 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, retailinvestors are increasingly seen as part of the solution rather than bystanders.From the government’s efforts to promote investment to the delicate balance theFinancial Conduct Authority (FCA) must strike between flexibility andprotection, the UK faces a moment of truth in determining whether its capitalmarkets 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 consistentunderperformance versus peers over the long term. Retail investors shouldapproach the UK like any other market - by assessing risk and rewardobjectively, identifying opportunities, and allocating capital accordingly,”says Elise Ash, SVP Marketing and Growth at IG Group.The Leeds Reform: Principles vs PracticeThe Leeds Reform, announcedin July 2025, is a sweeping package aimed at revitalizing the UK’sfinancial services sector. Its key provisions include:Unlocking Retail Investment: The UK has the lowest retailinvestment levels in the G7, with millions of savers stuck in low-yield cashaccounts. New measures, including FCA “Targeted Support,” ISA reforms, and theinclusion of Long-Term Asset Funds, aim to shift money into higher-returninvestments. The goal is to build a stronger saver-to-investor culture whilefunding UK businesses.Cutting Red Tape to Attract Growth: A new concierge servicewill attract global firms to UK financial hubs, while looser mortgage rules anda permanent Mortgage Guarantee Scheme will help first-time buyers. Businessregulation is being streamlined, with the Ombudsman and Senior Managers Regimerefocused, and the FCA reviewing its Consumer Duty for wholesale firms. The aimis to boost confidence and cut barriers to growth.Freeing Capital for Investment: The Bank of England israising its MREL threshold and tailoring Basel 3.1 rules to free funds forlending and investment. Reviews of ring-fencing and bank capital requirementsaim to balance competitiveness with stability. These changes should unlock morecapital for the economy while maintaining regulatory safeguards.Promoting Innovation & Fintech Leadership: The UK wantsto cement its fintech leadership with start-up support, easier regulatorynavigation, and expanded British Business Bank funding. Talent is central: newschemes include a Global Talent Taskforce, the £187m TechFirst programme, and askills compact for the financial sector. Together, these measures aim to makethe UK the world’s fintech capital.On paper, the Leeds Reform signals ambition: a recognitionthat bold moves are required to restore the UK’s global standing. However, thelong-term impact remains to be seen. The Leeds Reform’s success will ultimatelydepend not on the grandeur of its announcements but on its ability to translateinto tangible market confidence, both for corporates seeking capital andindividuals seeking to invest.As Ash says, “It’s encouraging to see the governmentprioritizing retail investing, but the challenge now is turning words intomeaningful action. So far, we’ve heard about an industry-led ad campaign -which while well-intentioned is unlikely to move the dial significantly - and areview of how investment risk is communicated, which is certainly welcome.”Can the Government Change the “Saver Mentality”?A central pillar of the Leeds Reform is the government’sattempt to influence cultural attitudes toward saving and investing. Fordecades, the UK has grappled with lowhousehold savings rates, with many citizens either mistrustful of financialmarkets or unwilling to engage beyond traditional bank deposits.The government’s strategy combines incentives and education.Tax-advantagedaccounts such as ISAsremain central tools, while broader public campaigns aim to demystify investingand encourageinvestments. Ministers argue that getting Britons to think of themselvesnot just as consumers but as long-term investors is essential to unlockingdomestic capital.But is it working? The results so far are mixed. Uptake ofinvestment products has grown modestly, but a general sense of mistrust remainsentrenched. A recent study showed that only23% of Britons had invested in the stock market. In an era ofcost-of-living pressures, households often focus on short-term liquidity overlong-term wealth building. Critics argue that without more significant taxincentives or structural reforms, the government risks preaching to theconverted ratherthan creating a genuine cultural shift.“[…] if we truly want to create an investing culture in theUK, we need bolder policy: better incentives to back UK stocks, the completeremoval of stamp duty on share sales, and ISA rules the need to encourage moreinvesting - with cash ISAs offering less generous allowances than stocks andshares ISAs,” says Ash.The Role of Brokers and FintechsIf the government sets the stage, brokers and fintechs are theobvious paths through which to bolster retail participation. The fintechrevolution has already reshaped investing globally, lowering barriers to entryand creating platforms that appeal to younger, digitally native investors.The UK’s markets need a resetWe’ve been regulating for safety, not growth — and it shows. Retail participation is at record lows, IPOs at 30-year lows, listings drifting awayA wholesale change in regulatory philosophy is needed for UK markets. My latest @ft🧵 pic.twitter.com/2pb0Y2fCOe— Huw van Steenis (@huwsteenis) October 7, 2025According to Ash, “Fintechs and digital investment platformsare already playing a huge role. The rise of low-cost, easy-access investmentoptions has made the UK one of the most competitive markets for retailinvestors. Lower barriers to entry are crucial for access, but these platforms- and I include IG in this - also have a responsibility to engage, educate, andcommunicate investing in a way that resonates with people.”In the UK, fintechs and brokers have a clear opportunity tostep in where traditional institutions have struggled. By offering:User-friendly platforms that simplify investing fornewcomers.Fractional shares and low-fee products that allow smallinvestors to participate in high-value stocks.Financial education and community tools that buildconfidence among first-time investors.Some firms are already experimenting with gamification, newsor summaries powered by AI, and integration with bankingapps. However, these innovations must walk a fine line: too much hype risksencouraging reckless speculation, while overly cautious products fail tocapture the imagination of retail investors. Indeed, gamification in apps ortools is somethingthe FCA is looking at.The challenge for brokers and fintechs lies in buildingtrust. To truly spur UK investment, they must bridge the gap betweenaccessibility and responsibility, making markets appealing without fuelingbubbles.FCA: Walking the TightropeLooming over all of this is the role of the FCA. Theregulator is charged with protecting consumers, but it also faces mountingpressure to promote innovation and competitiveness. The Leeds Reform implicitlyrecognizes this tension, urging the FCA to embrace flexibility withoutabandoning its duty of care.The FCA’s dilemma is stark: loosen regulation too far, andrisk scandals that undermine trust; clamp down too hard, and risk stifling thevery innovation the UK needs to revive its markets. Finding the right balancewill require nuanced policymaking, constant dialogue with industry, and awillingness to adapt as new products and risks emerge.Recent moves toward ‘regulatingfor growth’ focusing on results rather than prescriptive rules, suggest theFCA is aware of the need for change. Yet questions remain over whether it hasthe resources and agility to keep pace with fintech innovation whilemaintaining rigorous oversight.“The consensus seems to be that the UK needs to go furtherthan what’s been proposed so far if it wants to compete globally for listingsand capital. The perception of the UK as a ‘value’ market, in contrast to theUS’s stronger growth bias, also plays into that.""Unless the reforms help shiftthat 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, 2025A National Challenge, Not Just a Financial OneThe UK’s investment crisis is no longer a matter for theCity alone. It strikes at the heart of national competitiveness, economicgrowth, and the country’s ability to finance innovation. The Leeds Reform is astart, but its success hinges on coordinated action: a government willing toshape culture and incentives, brokers and fintechs ready to capture newaudiences, 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 undoubtedlysupported the success of its stock market. The same could happen here if wecreate the right conditions.""In June, we called for an enterpriseinvestment-style scheme that would allow investors to claim income tax reliefon UK shares held for more than three years - a practical incentive to backBritish 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, butthey may be the missing piece in a puzzle that has eluded policymakers for fartoo long.This article was written by Louis Parks at www.financemagnates.com.