Good morning and welcome to your Morning Briefing for Wednesday 5 November 2025. To get this in your inbox every morning click here.
M&G sees £1.5bn inflow surge amid rising adviser confidence
M&G has reported a strong third quarter, driven by £1.5bn of external net inflows into its asset management business.
The rise signals renewed demand from advisers and institutional investors.
In a Q3 2025 trading update published this morning (5 November), the group said total net inflows from open business reached £1.8bn across Asset Management and Life, helping push assets under management and administration (AUMA) to £365bn, up 3% in the quarter.
FCA warns firms on Consumer Duty ‘understanding gap’
The FCA has warned that financial firms must demonstrate that customers understand the products they are being offered, not just that they have access to them.
The regulator says its focus is now on embedding “capability by design” under the Consumer Duty.
Speaking at the Fair4All Finance Delivering Financial Inclusion Together Conference, chief executive Nikhil Rathi said widening access to financial services without improving understanding risks “points of vulnerability where small decisions carry big consequences”.
When the AI tools start thinking
I’ve read a lot recently about how artificial intelligence (AI) will hasten our demise, take our jobs and replace human purpose, writes Mark Locke, managing director of communications at the lang cat.
It’s easy to see why these ideas take hold. Every major innovation in history has unsettled people, because it forces us to rethink who we are and what we do.
Much of the fear surrounding AI is simply a natural reaction to change, especially when that change touches something as personal as how we live and work.
Quote Of The Day
The chancellor could have quelled fears among wealthy individuals considering leaving the UK by ruling out an exit tax. By choosing not to, she has only fuelled speculation that a 20% ‘settling-up tax’ may feature in the Budget
– Tim Stovold, head of tax at Moore Kingston Smith, comments on the chancellor’s speech on Tuesday, when she refused to rule out tax rises in the Budget
Stat Attack
Artificial intelligence (AI) will significantly reshape graduate careers in finance over the next five years, according to the latest study from CFA Institute, the global association of investment professionals. Key findings:
37%
of students now choose finance as their top career path, up from
30%
in 2024 and 24% in 2023.
67%
are concerned about AI disrupting traditional entry-level roles.
96%
believe continuous learning and holding professional qualifications will be critical to career success. Graduates rank
AI proficiency and data analytics
among the most valuable skills for the future of finance.
Source: CFA Institute
In Other News
Financial services consultancy Thistle Initiatives has appointed Scott Friedrichs as CEO to accelerate growth and expand beyond regulatory compliance into wider management consulting.
Friedrichs, who brings more than 30 years’ experience in business transformation and operational leadership, joins following a recent hiring push that included four new partners and CFO Alex Knight.
The 70-strong London firm advises banks, insurers, investment and advice firms, payment providers and lenders on compliance, financial crime and change programmes.
Its expanded offering will integrate governance and regulatory expertise into large transformation projects.
Friedrichs said he is “thrilled to be joining at such an exciting point in the firm’s growth” and aims to bring a fresh perspective after 25 years in the US consulting market.
Non-executive chair Martin Wassell said Friedrichs’ appointment supports Thistle’s strategy to broaden its services into areas such as financial crime, digital assets and change and transformation.
Global chip selloff erases $500bn in value as fears mount (Bloomberg)
Thinktanks urge Rachel Reeves to overhaul ‘broken’ tax system (The Guardian)
Zohran Mamdani wins New York as Democratic US electoral sweep deals blow to Donald Trump (Financial Times)
Did You See?
Britain doesn’t just have an advice gap – it has a confidence gap. While much has been written about the structural and economic barriers to financial planning, less attention is paid to the psychological ones, writes Steven Levin, CEO of Quilter.
Yet these are often the most insidious, quietly preventing millions from taking positive action with their money. Cash is being left in current accounts and low-yielding savings accounts in favour of investments as a result.
One such barrier is what we’ve termed Financial Imposter Syndrome (FIS), a widespread but under-recognised condition that advisers are likely to encounter in clients every day.
Read the full article here.
