The Investment Association’s Conference 2025: Scotland – Key Themes Shaping the Future of UK Investment Management

The Investment Association’s Conference in Edinburgh, Scotland on 25 November 2025 brought together industry leaders, regulators and asset managers to discuss the direction of travel for the UK investment management industry. A number of clear themes emerged, ranging from tokenisation to stewardship, and from retail engagement to Scotland’s role in the green transition, all of which have important implications for managers, advisers and service providers. This article summarises the key themes from this year’s event. 

1. Passive Dominance and the Evolving Role of Stewardship

With passive strategies now representing more than half of the market, discussions focused on what this means for stewardship and long-term ownership. Industry leaders stressed that even as cost pressures intensify, the need for effective engagement and responsible oversight of investee companies remains fundamental. For active and passive managers alike, demonstrating value in stewardship is becoming a differentiator.

2. Rebuilding Retail Investment Confidence

A major theme was the need to re-engage UK retail investors. Education – particularly early financial education – was repeatedly highlighted as essential to counter “safety-ism” and build long-term investment habits. Simplification of the ISA landscape and more intuitive digital advice and onboarding tools were identified as levers to help restore confidence and broaden participation.

3. Technology, Tokenisation and Customer Experience

Tokenisation and digital ledger systems continue to attract attention. While the FCA’s fund tokenisation work has opened the door to innovation, firms were urged to adopt technology in a measured way and ensure UCITS-style guardrails remain intact. Across the board, improved digital interfaces, from onboarding to real-time portfolio visibility, are becoming expected by investors, particularly younger cohorts.

4. Scotland’s Role in Financing the Transition

Scotland’s green economy was presented as a significant investment opportunity, with nearly £90bn in projects underway or imminent. Foreign investors continue to see Scotland as attractive, though concerns around the broader UK tax environment remain a brake on inflows. Calls were made for greater use of vehicles to channel capital into long-dated transition and decommissioning opportunities, supported by the Scottish investment ecosystem.

5. Operational Resilience in a More Complex Threat Landscape

As cyber threats grow more sophisticated, firms face pressure to invest in system upgrades and to conduct deeper due diligence on suppliers and third-party dependencies. The message here was very much that resilience requires constant forward momentum and a full-ecosystem perspective.

6. Market Dynamics – Beyond US Concentration

Speakers noted a shift in flows toward European equities, with concerns about US market concentration driving some rebalancing. While global investors are allocating to UK equities, domestic participation remains muted. In fixed income, bonds continue to have a role but can no longer be relied upon as the defensive counterweight they once were, leading to renewed interest in commodities and alternative diversifiers. The wider move from defined benefit (DB) to defined contribution (DC) schemes underscores the need for more UK-focused investment channels.

7. FCA Priorities – Standards, Access and Innovation

The FCA emphasised proportionality in SMCR, ongoing improvements to the authorisation process and the importance of effective consumer support, particularly for the 75% of DC savers who are over 45 years of age who lack clear decumulation plans.

On innovation, the regulator reiterated its commitment to digitalisation, fund tokenisation, and broadening market access through vehicles such as LTAFs, as well as reforms to listing rules. The growing participation of retail investors in private markets is seen as a megatrend, though accompanied by the need for robust risk management and better regulatory data.

Final Thoughts

The conference made clear that the UK investment management industry is at an inflection point: grappling with technological change, seeking to rebuild a retail investment culture, supporting the transition, and working closely with an increasingly engaged Scottish-based FCA. For managers and advisers, the opportunity lies in combining innovation with clarity, simplicity and trust – qualities that will define the next phase of growth.

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