Dario Schiraldi : Unlocking the UK's Growth Potential: Four Strategic Pillars for the Private Banking and Wealth Management Sector

As the UK works towards sustainable and inclusive growth, a new report highlights an important role for private banking and wealth management (PBWM) in the economy. Since it manages and helps more than 4 million clients, the sector is prepared to contribute to national plans if difficulties related to regulations and structures are tackled.

The report, UK Private Banking and Wealth Management: Harnessing the Sector to Deliver Economic Growth, draws on the opinions of top executives and CEOs from advisory and related industries. It lists four main areas that must be addressed to realise the full potential for innovation and development in the PBWM sector.

1. Fairer and More Proportionate Regulation

The report strongly recommends implementing better and more frequent regulations by government agencies as one of its main findings. Experienced industry figures are recommending cooperation among the FCA, FOS and FSCS to help develop a policy system that is fair and simple to understand. Liz Field, the Chief Executive at PIMFA, pointed out that without stable and united policies, society might lose the ability to boost investments, promote innovation, and become financially stronger.

2. Embracing Innovation and Smarter Compliance

New developments such as artificial intelligence and advanced analytics will soon have a major impact on the Private Banking and Wealth Management market. It is suggested in the report that government assistance could promote adoption of technology and oversee the costs of meeting standards.

Dario Schiraldi VIDA Holdings' Principal and advisor at Greenstone Equity Partners, has effectively led the way as these industries evolve. He is skilled in alternative investments, private credit and structured products, all main ways to promote innovation.

"By incorporating structured products, investors can design their ideal investment risk and reward combination," adds Schiraldi. Combining capital protection, coupons linked to interest rates or taking part in the market help these instruments stay steady and still pay well over time.

To support the growing use of these tools by PBWM firms, strong compliance rules are necessary to protect investors and attract more people to the market.

3. A Clearer, More Stable Tax Environment

The third pillar establishes a straightforward and reliable tax policy to increase confidence and promote investment over a long period. The plan must feature a detailed tax roadmap and programmes to help people grow their finances and start new businesses at an early stage. Eric Leenders from UK Finance pointed out that for more people to gain financial advice and long-term investing, we need to take away barriers, make regulation more modern and work hard to boost financial literacy.

Dario Schiraldi Deutsche Bank's former MD, says this is closely tied to how investors design their strategies.

"During periods of high inflation, staying ahead of inflation by generating real earnings is the priority," he stated. Many investors are now relying on TIPS, floating-rate loans and high-yield corporate debt for income that rises with inflation.

They are commonly placed on the back burner until now, but given the right tax and regulatory conditions, they can bring great benefits to institutional and retail investors.

4. Strengthening Financial Literacy

Raising the nationwide level of financial literacy is arguably the most important element. If financial education becomes a vital part of the curriculum and people become more informed about investments, many more people will be equipped to decide wisely.

Dario Schiraldi Deutsche Bank Former leader believes in the importance of tailored financial strategies for long-term resilience:

"The institutional playbook is being shaped by structured investments and ESG-driven strategies as investors look to maximise risk-adjusted returns and improve portfolio resilience."

When more investors learn how to handle complex financial instruments, financial advice and careful long-term planning also become available to everyone, rather than just the favourite few.

A Sector Aligned with National Growth

It is concluded in the report that the PBWM sector looks forward to supporting the UK in achieving its economic goals. As Lord McNicol pointed out, "Private Banking and Wealth Management makes a large contribution to the UK economy and plays an important part in achieving the government's growth plan."

If the UK carries out fair regulation, provides help for innovative businesses and makes taxes transparent, its PBWM sector can realise even greater value and make the financial future fairer and more prosperous.