Wealth Managers Eye Your Savings – But Is It Really About You?

Ah, wealth managers. They spot £430bn sitting quietly in savings accounts and think, “How can we help these poor souls?” And by help, I mean, get a piece of that pie in the form of bigger fees. It’s almost heartwarming how they dress this up as being in the “client's best interest.”

Let’s break this down. For starters, there are plenty of reasons why people might want to keep their money in savings rather than gambling it on the stock market. The timeline alone should give them pause—investments are long-term. You’re not parking your money for a quick six months. If you’re investing, it’s a commitment of five years, minimum.

Then there’s the reality that 95% of the UK population has less than £100k in investable assets. So where do wealth managers get off acting like everyone’s sitting on a pile of cash just waiting for them to swoop in with “expert” advice? The first chunk of that money should be safely tucked away in accessible savings accounts. Only the surplus – if any – should be self-invested on low-cost, well-diversified D2C platforms. Let’s call a spade a spade: intermediaries and guided intermediaries are just product sellers. There’s no need to funnel more money into their pockets.

And then there are the wealthy. Yes, the top tier might have a bit more to play with, but guess what? They don’t need to roll the dice with risk either. They’ve already got enough to avoid outliving their capital. So why on earth would they want to dial up the risk? They’ve got enough. They know it. The wealth managers know it. But, oh, those fees.

Now, we’ve got Barclays. Apparently, they’ve noticed this £430bn “investment gap,” and they’re sounding the alarm. Sasha Wiggins, from Barclays Private Bank and Wealth Management, suggests this is all down to a lack of clarity and advice. Well, maybe. Or maybe people just don’t want to gamble with their hard-earned savings. Wiggins wants to close this gap, of course, for the benefit of savers (ahem) and to boost UK capital markets. Because when it comes down to it, it’s all about the markets, isn’t it?

Barclays wants regulatory changes to make it easier for financial providers (read: them) to “help” savers invest their money. But are they really talking about help or just a fancier way of boosting their bottom line? They suggest regulatory changes to allow firms to give “people like you” recommendations based on large cash balances. Translation: Let’s find a way to make selling more products easier.

Look, if savers really wanted to invest, they’d do it themselves on a low-cost platform. And as for the supposed “choice paralysis” and “fear of risk,” maybe it’s not fear—it’s common sense.

Barclays’ policy suggestions? Simplify sign-ups, offer comparison tools, and slap an FCA-approved badge on entry-level products. In other words, make it easier for the average saver to jump into the market without fully understanding the risks. Because as long as the products tick all the boxes, what could go wrong?

In the end, this is just another well-dressed attempt to coax more people into the market, and for what? Bigger fees for wealth managers. Let’s not kid ourselves.