Reeves Urges Regulators To Ease Rules And Encourage Share Investments

Rachel Reeves has urged regulators to resist “excessive caution” as she unveiled plans to encourage more Britons to invest in shares, aiming to unlock growth and innovation. Speaking at the annual Mansion House dinner, Reeves criticised regulatory burdens as a “boot on the neck of businesses” that stifles enterprise, announcing reforms to support the City and bolster investment culture nationwide.

Among her proposals, Reeves outlined plans to reduce regulatory warnings on equity products, which she argued deter novice investors, especially women. She noted that presenting investments solely through the lens of risk diminishes participation, instead calling for a more balanced emphasis on their potential benefits.

The Treasury will launch a City-funded advertising campaign to encourage savers with low-yield savings accounts to consider investing, similar to the historic ‘Tell Sid’ commercials from the British Gas privatisation of the 1980s. This initiative will highlight the benefits of share ownership and prioritise investments in London-listed companies to further support the domestic economy.

Fifteen leading firms, including Barclays, NatWest, HSBC, Lloyds, and major trading platforms such as Hargreaves Lansdown and AJ Bell, are participating in the campaign. The Investment Association will lead the campaign, working alongside the Financial Conduct Authority and the Money and Pensions Service. By engaging these institutions, the government aims to tap into the £20,000 ISA limit and draw more retail investors into stocks and shares markets.

To complement this promotion, new regulatory frameworks will allow financial firms to provide “targeted support” to individuals without requiring comprehensive financial checks. This measure is designed to help the estimated 29 million adults in the UK with cash savings of around 1% interest annually shift towards stocks, which have delivered an average return of 9% over the past decade.

Additionally, plans are in place to introduce a new fund under stocks and shares ISAs called long-term asset funds (LTAFs). This would enable investors to support less liquid assets like infrastructure projects and unlisted companies, opening new opportunities for portfolio diversification while stimulating broader economic growth.

With these reforms, Reeves is aiming to grow participation in the financial markets and ensure savers can maximise their returns while creating a culture that supports long-term British investment.