Key Points from the Week:
The UK economy demonstrated resilience this week, with August GDP expanding 0.1% and outperforming expectations of contraction, while growth over the three months to August reached 0.7%. Manufacturing output rose 1.2%, supported by technology-related activity, and the IMF upgraded its 2026 UK growth forecast to 1.3%, citing stronger economic performance and AI-related investment though it expects growth to moderate in 2027. Sterling strengthened to a 17-month high against the euro at 83.95 pence, supported by improved data and concerns over France’s fiscal position. Inflation and rising national debt loom over Healey’s first fiscal statement, gilt yields remain elevated, and Healey has ruled out increasing capital gains tax, a decision that will be welcomed by wealth managers but narrows the options available to close a significant fiscal gap. Governor Bailey noted that second-round inflationary effects remain subdued, while Chief Economist Huw Pill pushed back against market expectations of four rate increases over the next year.
Financial services activity remained robust across insurance, wealth management and financial technology. Seventeen Group continued its expansion, acquiring both Sovereign Insurance Services and Lloyd’s broker Dashwood Brewer & Phipps, while Atticus Insurance acquired Leading Edge through Momentum Broker Solutions. SaaScada partnered with Zumo to help financial institutions integrate regulated digital-asset services, while Timeline is eyeing a capital event to repay its Octopus loan, signalling ongoing balance sheet management activity across the fintech landscape. Fruga raised £1m to address the cost of insurance renewals, tackling a pain point that affects millions of consumers. UK-listed companies distributed £28.4bn in dividends during Q3, up 14.1% year-on-year, providing a constructive signal for equity income investors even as rising gilt yields make fixed-income alternatives increasingly competitive. The FTSE 100 gained 3.1% over the week to 10,881.90, supported by defensive sectors and improving investor confidence in the UK’s fiscal trajectory.
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Welcome to HSA Advisory’s Financial Services Newsletter, your concise roundup of UK macroeconomic developments and financial services transactions.
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UK Macroeconomics
20 October 2026: Healey rules out increasing capital gains tax in the Budget
– Chancellor John Healey has ruled out raising capital gains tax (CGT) in the 28 October Autumn Budget, rejecting calls from senior Labour figures to align CGT rates more closely with income tax. The decision reflects concerns that higher taxes could undermine investment and economic confidence
– CGT currently stands at 18% for basic-rate taxpayers and 24% for higher-rate taxpayers, compared with income tax rates of 20% and 40%, respectively. The tax generated approximately £24bn in 2025–26, making it a significant source of government revenue
– Treasury officials reportedly warned that increasing CGT could prove counterproductive if investors defer asset sales or relocate overseas to avoid higher liabilities. Such behavioural responses could shrink the taxable gains pool and reduce receipts, complicating the Chancellor’s efforts to strengthen public finances amid rising borrowing costs
– The decision leaves the government with fewer options to raise revenue while funding cost-of-living support and meeting spending commitments. Attention is consequently shifting towards a potential bank-tax increase, although the broader Budget will need to balance fiscal consolidation with business investment and economic growth
19 October 2026: Sterling hits 17-month high against the euro
– Sterling climbed to its strongest level against the euro since May 2025, reaching 83.95 pence per euro before trading at 84.11 pence. The pound benefited from stronger-than-expected UK economic data and reduced concerns over the government’s fiscal outlook
– The euro weakened amid significant political unrest in France, raising concerns about political stability and the country’s ability to address its public finances. French government bond yields rose relative to German Bunds, reflecting increased investor risk aversion towards French sovereign debt
– Higher European energy prices added further pressure on the single currency, with natural gas prices reaching a four-year high. Meanwhile, stronger UK economic activity in August supported sterling, although the pound edged lower against the US dollar amid broad-based dollar strength
– Attention is now turning to the UK Autumn Budget on 28 October, which could influence sterling through its implications for borrowing, taxation and fiscal credibility. Despite recent gains against the euro, uncertainty surrounding UK growth and the Bank of England’s interest-rate outlook presents downside risks
19 October 2026: Treasury introduces new security measures to prevent UK Budget leaks
– Chancellor John Healey has introduced stringent, military-style security protocols at HM Treasury ahead of the 28 October Autumn Budget. The measures aim to prevent premature disclosure of sensitive tax and spending decisions, following repeated leaks that undermined confidence in the government’s fiscal announcements
– Under the new arrangements, access to sensitive Budget documents is restricted to specifically authorised officials, while digital monitoring tracks document access and information sharing. A new “Budget – Market Sensitive” classification applies to key fiscal information, with enhanced controls designed to reduce unauthorised distribution
– The measures follow security failures surrounding the previous Budget, including the premature disclosure of tax policy decisions and the accidental online publication of the Office for Budget Responsibility’s economic and fiscal outlook before the Chancellor’s statement. A subsequent government review recommended tighter controls over sensitive information
– The crackdown also reflects concerns that Budget speculation can influence financial markets and household decisions before policies are formally announced. Healey argues that leaks can disrupt investment planning and pension decisions, although critics question whether restricting civil servants alone will address disclosures originating from political figures and advisers
19 October 2026: UK dividend payments jump 14% in a year as banks and miners lead payouts
– UK-listed companies distributed £28.4bn in dividends during the third quarter of 2026, representing a 14.1% year-on-year increase and the strongest third-quarter total since 2019. The figures highlight the resilience of shareholder distributions despite persistent inflation and uncertainty surrounding the domestic economic outlook
– Banks and mining companies accounted for the bulk of the increase, benefiting from strong profitability and favourable sector-specific conditions. Mining dividends surged 89.6%, while bank payouts rose 24.5%, with the two sectors collectively generating approximately 85% of overall dividend growth during the quarter
– Rio Tinto led individual corporate distributions, paying approximately £2bn following a 44% increase in its dividend. The results underline how large, internationally exposed companies continue to support UK equity income, although payouts remain sensitive to commodity prices, earnings performance and capital-allocation decisions
– However, rising gilt yields are making government bonds increasingly competitive against dividend-paying equities. With 10-year gilt yields above 5.4% and the FTSE 100’s forecast dividend yield around 3.3%, investors face a narrower relative-income case for equities, despite the recent increase in distributions
18 October 2026: Inflation and rising national debt loom over Healey’s first Budget
– Chancellor John Healey faces mounting pressure ahead of his first Autumn Budget on 28 October, with inflation, elevated borrowing costs and rising public debt constraining his fiscal options. The government must balance cost-of-living support and economic growth against its commitment to maintaining fiscal discipline
– UK inflation rose to 3.4% in September, its highest level this year, remaining significantly above the Bank of England’s 2% target. Rising food prices, housing costs and anticipated increases in household energy bills threaten to prolong inflationary pressures and intensify demands for government assistance
– Rising gilt yields have sharply reduced the Chancellor’s fiscal headroom, with estimates suggesting it has fallen from £23.6bn in March to approximately £12bn. Higher government borrowing costs are increasing debt-servicing expenses, leaving less flexibility for tax reductions, public investment and additional spending commitments
– Healey is expected to prioritise revenue-raising measures and spending restraint rather than additional borrowing, with banks among the potential targets for higher taxation. Investors will scrutinise the Budget for evidence that the government can meet its fiscal rules without undermining business confidence, investment or economic growth
18 October 2026: City of London faces £70mn budget shortfall amid funding reforms
– The City of London Corporation is facing a projected £70mn budget shortfall following planned changes to central government funding under Labour’s Fair Funding Review, scheduled to take effect in 2029. The authority is assessing tax increases and spending reductions to address the anticipated funding gap
– Potential measures include increasing the business rates premium and council tax, alongside reductions to non-statutory services. The proposals have raised concerns about the financial sustainability of cultural institutions, particularly the Barbican Centre, which received £32.8mn in funding during 2025–26
– The funding changes aim to redistribute resources towards councils serving areas with greater financial need. However, the Square Mile’s unusual demographic profile, with relatively few permanent residents but a substantial daytime workforce – could leave it disproportionately affected by a funding formula that prioritises residential population and local need
– Increasing business rates could undermine the City’s competitiveness as a global financial centre, potentially raising operating costs for banks and professional-services firms. The Corporation is evaluating its options, with final recommendations on council tax and its five-year financial plans expected in March 2027
16 October 2026: FCA signals potential MPS rule changes to align sector with investment funds
– The Financial Conduct Authority (FCA) has indicated it may bring model portfolio services (MPS) closer to the regulatory framework governing authorised investment funds. The proposal follows industry feedback on the regulator’s discussion paper exploring ways to expand consumer access to investments and improve disclosure consistency
– The FCA highlighted inconsistencies in how MPS providers disclose information compared with authorised funds, which must follow standardised requirements under the incoming Consumer Composite Investments (CCI) regime. The new rules are scheduled to take full effect on 8 June 2027, potentially establishing a more consistent disclosure framework
– MPS offerings typically provide investors with professionally managed, pre-constructed portfolios distributed through financial advisers and investment platforms. Greater regulatory alignment could improve transparency around portfolio composition, investment risks and charges, enabling clients to compare products more effectively and make better-informed investment decisions
– For wealth managers and portfolio providers, potential changes could require revised disclosures, enhanced compliance processes and adjustments to product governance. Although greater consistency may strengthen consumer protection and confidence, firms will need to assess implementation costs and operational implications as the FCA develops its regulatory approach
16 October 2026: FTSE 100 records strongest week in six months as defensive stocks rally
– The FTSE 100 gained 3.1% over the week, its strongest performance since early April, closing Friday at 10,881.90 points. Defensive-sector buying helped offset global losses in artificial intelligence-linked equities, while improved investor confidence in the UK’s fiscal outlook supported sentiment
– Consumer staples, healthcare and personal goods led the advance as investors diversified away from US mega-cap technology stocks. The beverages sector rose 7.8% during the week, while medical equipment and services gained 6.9%, highlighting demand for comparatively resilient businesses amid market volatility
– Chancellor John Healey’s renewed commitment to fiscal discipline boosted confidence, with UK housebuilders gaining more than 6% over the week. Meanwhile, UK large-cap exchange-traded funds attracted an estimated £2.5bn in net inflows year to date, marking their strongest annual inflows since 2020
– Gains were tempered by uncertainty surrounding the forthcoming Autumn Budget, particularly reports of higher taxes on banks. Investors also weighed expectations of further Bank of England rate increases and awaited inflation data, leaving equity markets sensitive to fiscal announcements, borrowing costs and evolving global technology valuations
16 October 2026: Bank of England’s Bailey sees second-round inflationary pressures remaining subdued
– Bank of England Governor Andrew Bailey said the broader inflationary effects of soaring energy prices remained relatively limited, although he cautioned that it was too early to assess their full impact. Speaking in Bangkok, he highlighted subdued evidence of second-round price pressures so far
– Bailey noted that businesses were prioritising cost-cutting and struggling to pass higher energy costs on to customers. However, sustained increases in energy prices could eventually squeeze corporate margins, prompting companies to raise prices and potentially extending inflationary pressures across the wider UK economy
– UK inflation reached 3.1% in August, remaining above the Bank’s 2% target as geopolitical conflict in the Middle East drove energy prices higher. Although policymakers have yet to observe substantial indirect price effects, prolonged cost pressures could influence wage negotiations and businesses’ pricing decisions
– Bailey’s remarks leave the Bank’s interest-rate outlook uncertain ahead of its November policy meeting, with markets increasingly anticipating a rate increase. Policymakers must balance the risk of persistent inflation against weaker labour-market conditions and tighter financial conditions already affecting households and businesses
16 October 2026: Looming UK bank tax rise puts lenders on edge ahead of Budget
– UK banks intensified lobbying against proposed tax increases ahead of Chancellor John Healey’s 28 October Budget. The government is considering raising the bank corporation tax surcharge from 3% to 8%, potentially pushing the sector’s overall tax rate above 50% and generating additional revenue for the Treasury
– The sector’s campaign has been complicated by divisions between major lenders and smaller challengers over the potential reforms. While large international banks warn that higher taxes could divert investment and jobs overseas, some smaller lenders favour changes to the surcharge threshold to protect their competitiveness
– UK Finance warned that increasing the surcharge could reduce business lending and mortgages, estimating that lending could be £10.4bn lower by 2029–30. The industry also argued that additional taxes could weaken investment and economic growth, potentially offsetting some of the revenue gains anticipated by the government
– The International Monetary Fund urged Healey to prioritise spending reforms, including changes to pension and welfare commitments, rather than relying on higher bank taxes. With lenders reporting strong profits and fiscal pressures mounting, the Chancellor faces competing demands to raise revenue while preserving financial-sector competitiveness and lending capacity
16 October 2026: BoE’s Bailey says it is ‘early days’ to assess full inflationary impact of energy prices
– Bank of England Governor Andrew Bailey cautioned that it was too early to determine the full inflationary impact of elevated energy prices following the conflict in the Middle East. While broader price pressures remain relatively subdued, he warned that prolonged energy costs could eventually force businesses to increase prices
– Bailey noted that companies were currently prioritising cost-cutting and absorbing higher energy expenses rather than passing them directly to consumers. However, sustained cost pressures could compress corporate margins, particularly in energy-intensive industries, eventually increasing the likelihood of price rises across supply chains and consumer markets
– UK inflation reached 3.1% in August, remaining above the Bank’s 2% target, while financial markets increasingly anticipated a potential interest-rate increase at the November meeting. Bailey maintained that policymakers needed further evidence of persistent inflationary effects before determining whether tighter monetary policy would be necessary
– The outlook presents a difficult trade-off between containing inflation and supporting economic activity. If energy prices remain elevated, businesses may have less capacity to absorb additional costs, increasing the risk of second-round inflationary effects and potentially keeping borrowing costs higher for households and companies
15 October 2026: London’s gold market enjoys the Trump effect as global instability boosts demand
– London’s position as the world’s leading centre for physical gold trading has strengthened amid geopolitical uncertainty and concerns over US policy under Donald Trump. Central banks are diversifying reserves away from US government bonds, while investors increasingly view gold as a strategic asset amid heightened economic and financial risks
– The Netherlands transferred more than 78 tonnes of gold from New York to London, citing the security of Bank of England vaults and London’s superior liquidity. The relocation reflects growing interest in holding bullion where it can be accessed during crises and traded efficiently without requiring physical movement
– London’s gold reserves approached 10,000 tonnes in September, valued at approximately $1.3tn, reinforcing the City’s role in global bullion markets. Its established infrastructure enables banks and institutional investors to transfer ownership electronically, supporting efficient transactions and reducing the logistical burden of moving physical metal
– Although New York remains dominant in gold futures, London retains an advantage in physical trading and central-bank custody. However, competition is intensifying as Singapore develops clearing infrastructure and digital gold products gain traction, requiring London to maintain its liquidity, security and operational advantages
15 October 2026: UK economy defies contraction fears to grow 0.1% in August
– UK GDP expanded by 0.1% in August, exceeding economists’ expectations of a 0.1% contraction, although growth slowed from 0.4% in July. The figures provided Chancellor John Healey with a modest boost ahead of the 28 October Budget, despite mounting fiscal pressures
– Manufacturing provided a key growth driver, with output increasing by 1.2% during August, while the wider production sector expanded by 0.8%. Computer programming output rose 1.1% during the month and 13% year-to-date, highlighting the growing contribution of artificial intelligence investment and technology-related activity
– Underlying performance remained uneven, with services output unchanged and construction contracting by 0.2%. Consumer-facing services fell by 0.3%, reflecting pressure on household spending from rising fuel prices and energy costs. The divergence highlights the contrast between resilient business investment and weakening consumer-facing activity
– GDP grew by 0.7% over the three months to August and stood 2.1% higher year-on-year. However, economists warned that elevated energy prices, inflation and borrowing costs could weaken momentum towards year-end, complicating Healey’s efforts to support growth while maintaining fiscal discipline
15 October 2026: Wealth managers reduce AI exposure as semiconductor sell-off intensifies
– Wealth managers are reducing exposure to artificial intelligence-linked investments after substantial gains in technology stocks left portfolios increasingly concentrated in US equities and emerging markets. The reassessment reflects growing concerns about valuations, portfolio diversification and the sustainability of returns from AI-related investments
– The pullback coincides with a sharp sell-off in semiconductor stocks, as investors question whether massive spending on AI infrastructure will generate sufficient returns. Rising borrowing costs have intensified scrutiny of data-centre investments and debt-funded expansion, prompting greater caution towards companies reliant on continued capital-market financing
– Broader market volatility has encouraged investors to reconsider concentrated positions in technology-heavy portfolios. South Korea’s KOSPI and Japan’s Nikkei experienced significant declines, while semiconductor shares recorded consecutive losses. The developments highlight how crowded investment positions can amplify market corrections when sentiment shifts
– For wealth managers, the adjustment signals a greater emphasis on diversification, valuation discipline and risk management rather than abandoning AI’s long-term growth potential. Upcoming technology earnings will be critical in determining whether companies can demonstrate sustainable profitability and justify continued investment in AI infrastructure
15 October 2026: Healey vows to ‘stay the course’ on reducing UK deficit
– Chancellor John Healey reaffirmed his commitment to reducing government borrowing and complying with fiscal rules during the IMF and World Bank annual meetings in Bangkok. His remarks followed international recognition of Britain’s deficit-reduction plans, despite rising borrowing costs and mounting pressure on public finances
– The International Monetary Fund praised the UK for taking decisive action to reduce borrowing, distinguishing it from other major advanced economies without similarly clear consolidation plans. The Fund urged Healey to maintain the existing trajectory rather than accelerate fiscal tightening, balancing debt sustainability against economic growth
– Healey declined to commit to reducing the deficit every year during the current parliamentary term, emphasising that the government’s fiscal rules would be assessed against the 2029–30 financial year. This leaves the Chancellor focused on meeting longer-term targets while managing immediate spending pressures and higher debt-servicing costs
– Ahead of the 28 October Budget, Healey indicated that targeted, temporary support for households and businesses facing elevated energy costs remained under consideration. The challenge is to provide relief without undermining fiscal credibility, as rising gilt yields, defence commitments and inflation threaten to erode the government’s limited fiscal headroom
14 October 2026: Healey to fund Budget giveaways without additional borrowing
– Chancellor John Healey is expected to finance new measures in the 28 October Budget, including cost-of-living support, through higher taxes or spending cuts rather than additional borrowing. The approach aims to preserve compliance with the government’s fiscal rules while responding to mounting economic pressures
– The decision aligns with International Monetary Fund (IMF) recommendations that governments adequately fund new spending commitments and tax reductions. The IMF has praised the UK’s deficit-reduction strategy, urging Healey to maintain fiscal discipline despite rising debt-servicing costs and pressure to increase defence spending and energy subsidies
– The Iran war has significantly weakened the Chancellor’s fiscal position, with estimates suggesting his £23.6bn headroom against fiscal rules has fallen to approximately £12bn. Planned measures include targeted assistance with winter energy bills and suspending scheduled fuel-duty increases, alongside potential tax rises for selected industries
– Healey intends to ensure the Budget remains fully funded by 2029–30, the final year of the current parliamentary term, supporting the objective of reducing debt as a share of GDP. The strategy seeks to reassure bond investors while balancing household support, economic growth and long-term fiscal sustainability
14 October 2026: Bank of England’s Pill questions market expectations for four interest rate hikes
– Bank of England Chief Economist Huw Pill expressed scepticism about financial markets pricing in four quarter-point interest rate increases over the following year. Despite supporting recent rate rises, Pill questioned whether a full percentage-point tightening would be necessary to contain inflation
– Markets were anticipating an initial rate increase in November, followed by three further hikes by September 2027. However, Pill emphasised that policymakers needed stronger evidence of persistent inflationary pressures before committing to such an aggressive tightening cycle, highlighting uncertainty over the appropriate policy response
– Persistent energy-price pressures linked to the Iran conflict have increased concerns that higher costs could spread across the wider economy through business pricing decisions and wage demands. Pill warned of potential second-round inflation effects, although slower UK wage growth offered some encouragement for the inflation outlook
– Pill’s comments highlight the challenge facing the Monetary Policy Committee as it balances inflation risks against weakening economic momentum and tighter financial conditions. For businesses, households and investors, the eventual pace of rate increases will influence borrowing costs, mortgage affordability, gilt yields and expectations for UK economic growth
13 October 2026: Healey rejects calls to equalise capital gains and income tax rates
– Chancellor John Healey has reportedly ruled out aligning capital gains tax (CGT) rates with income tax ahead of the 28 October Autumn Budget. The decision follows pressure from senior Labour figures to increase taxation on investment gains, amid mounting fiscal pressures and limited scope for raising other major taxes
– The proposed reform had raised concerns among entrepreneurs, investors and business leaders that higher taxes on investment returns could discourage risk-taking, delay asset disposals and encourage wealthy individuals to relocate overseas. Critics also warned that the changes could undermine the UK’s attractiveness as a destination for investment and business creation
– CGT currently stands at 18% for basic-rate taxpayers and 24% for higher-rate taxpayers, compared with income tax rates of 20% and 40%, respectively. The tax generated approximately £24bn in the 2025/26 financial year, making it a potential revenue source as Healey seeks to strengthen the public finances
– Although equalisation has reportedly been ruled out, a more modest CGT increase remains possible as the Chancellor seeks to address higher borrowing costs and fund public spending commitments. The decision highlights the trade-off between raising revenue and protecting investment incentives, particularly as the government seeks to stimulate productivity and economic growth
13 October 2026: Complaints about UK companies’ conduct rise sevenfold
– The UK Office for Responsible Business Conduct (ORBC) received 36 complaints against British companies between January and late August 2026, compared with just five in 2021. The increase highlights mounting scrutiny of corporate behaviour, particularly concerning environmental damage, labour practices and human rights
– The rise follows the expansion of OECD guidelines for multinational enterprises in 2023, which strengthened expectations around environmental protection, human rights, technology and supply-chain accountability. Businesses are increasingly expected to assess not only their own operations but also the conduct of suppliers and commercial partners
– Complaints originate from non-governmental organisations, trade unions and individuals, with Barclays among the companies facing scrutiny over its links to a coal-powered plant near the Sundarbans mangrove forest spanning India and Bangladesh. Greater awareness and AI-assisted complaint submissions could further increase scrutiny of corporate conduct
– Although the ORBC cannot impose financial penalties, it can investigate allegations, publicly criticise companies and facilitate mediation, creating potential reputational and commercial risks. The trend reinforces the importance of robust environmental, social and governance policies, supply-chain due diligence and transparent stakeholder engagement
13 October 2026: IMF upgrades UK growth outlook as AI drives economic expansion
– The International Monetary Fund (IMF) raised its forecast for UK GDP growth in 2026 to 1.3%, up 0.5 percentage points from its April projection. The revision positions Britain among the strongest-improving G7 economies, supported by artificial intelligence investment and technology-related exports
– AI-related investment in software, hardware, data centres and supporting infrastructure has helped strengthen business investment, while programming, consultancy and professional services have benefited from rising demand. The IMF’s assessment suggests Britain’s concentration of knowledge-intensive industries could help it capture a greater share of the global technology boom
– The improved outlook reflects stronger-than-expected economic performance, with UK GDP expanding by 0.6% in the first quarter and 0.5% in the second. However, the IMF expects growth to moderate to 1.2% in 2027 as higher energy prices and borrowing costs weigh on consumption and investment
– The upgrade offers Chancellor John Healey some encouragement ahead of the 28 October Budget, although the IMF warned that the UK must maintain its deficit-reduction plans. Sustained growth will depend on whether AI adoption delivers lasting productivity improvements, rather than a temporary boost from technology-related capital expenditure
UK Financial Services Key Transactions
19 October 2026: Quilter Cheviot expands MPS with liquidity launch and passive rebrand
– Quilter Cheviot is expanding its managed portfolio service (MPS) with a new Liquidity portfolio, launching on 30 October, investing predominantly in high-quality money market funds at a 0.10% portfolio management cost. It has also rebranded its IDX range as Index+, adding three strategies and aligning its seven risk levels with its Building Blocks range to strengthen diversification and adviser choice
16 October 2026: Timeline eyes capital event to repay Octopus loan
– Timeline, the UK model portfolio services provider overseeing approximately £15bn in assets, is seeking new investors through a potential capital event to repay a £6.3m loan from Octopus Investments. The move follows reported losses in 2025, as Timeline focuses on its core investment business and pursues sustainable profitability amid intensifying competition in the MPS market
16 October 2026: Kidderminster broker buys Momentum appointed representative
– Atticus Insurance, a Kidderminster-based broker operating under Momentum Broker Solutions, has acquired fellow appointed representative Leading Edge. The acquisition supports Atticus’s expansion through Momentum’s acquisition network, with founder Luke Jones indicating further deals are being considered, highlighting the role of appointed representative networks in consolidating the UK insurance broking market
16 October 2026: Seventeen Group acquires one of UK’s longest-established Lloyd’s brokers
– Seventeen Group has acquired Dashwood Brewer & Phipps (DB&P), an independent Lloyd’s broker founded in 1919, strengthening its London Market capabilities and international distribution. DB&P will retain its brand, regulatory status and leadership team, becoming the group’s dedicated Lloyd’s business alongside James Hallam and Touchstone Underwriting, with opportunities to expand into new territories and underwriting facilities
15 October 2026: Fruga raises £1m to cut the cost of insurance renewals
– Manchester-based InsurTech Fruga has raised £1m from NPIF II – PXN Equity Finance and Haatch to scale its open banking platform. The technology rewards policyholders with credits for everyday spending at participating retailers, which can offset renewal premiums by more than £150. The funding will support recruitment and expansion across the UK insurance market
15 October 2026: SaaScada and Zumo partner to bring digital assets into UK banking
– SaaScada and Zumo have partnered to help UK banks, fintechs and wealth managers integrate regulated cryptocurrency services into existing platforms. Zumo will provide custody, trading and compliance capabilities, while SaaScada manages associated cash accounts. The partnership aims to accelerate adoption ahead of the UK’s planned digital asset regulatory framework in October 2027
14 October 2026: Oakglen Wealth buys first advice firm as parent group backing hits £6.6m
– Oakglen Wealth has acquired Peterborough-based Aurea Financial Planning, marking its entry into the UK financial planning market. The deal follows £6.6m of cumulative backing from parent Oakglen Group, including nearly £3m invested in 2025. The acquisition expands Oakglen’s proposition beyond investment management into financial advice, supporting its broader UK growth strategy
A Word from Our Founder & Managing Director
Improved GDP, an IMF upgrade and sterling at a 17-month high against the euro. The week’s data offered some of the clearest evidence yet that the UK economy is performing better than expected. But the Budget arrives in eight days and the fiscal arithmetic remains unresolved. For financial services, the pattern that has defined this newsletter all year holds: consolidation advancing, technology attracting capital and the sector building through uncertainty rather than waiting for it to clear. At HSA Advisory, we help clients act on that pattern with clarity and precision by bringing senior-led insight to M&A, cross-border growth and capital raising where strategic preparation continues to define outcomes. Eight days to the Budget. The moment of reckoning is almost here.
Himanshu Singh, Founder & Managing DirectorNew Podcast: M&A Station by Himanshu Singh
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Pulse Check
Stronger growth and sterling provide encouragement, but energy inflation, borrowing costs and Budget uncertainty continue to shape investment decisions.
We’d love to hear your thoughts.
Source: Financial Times, Reuters, The Times, Insurance Times, Insurance Business UK, The Guardian, Insurance Age, CityWire, FinTech Global.
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