The Chancellor could easily have turned up to the Mansion House this week dressed as a magician because she certainly pulled some rabbits from the hat.

She caught more than a few people by surprise by announcing a series of financial reforms.

From pension ‘megafunds’ to a call to the FCA and other regulators to actually cut back on regulation and spur growth, it was a flurry of reforms, at least a dozen major measures in all.

To be fair, some of these, such as the advice-guidance review by the FCA, were already under way.

Some were also flagged up in advance but there is no doubt Rachel Reeves wants to drive through financial reform and encourage the financial services sector, one of the bright points in the UK economy, to grow faster.

And to be fair she needs to push a growth agenda. The UK economy is currently suffering anaemic growth with GDP increasing by only 0.1% in the most recent three month period and actually shrinking in September. Unemployment has also crept up and major employers have warned that her Budget increase in Employers’ National Insurance and the minimum wage will cost jobs.

Growth in the financial services sector makes sense. The jobs are generally well paid with professional careers ahead and high tech increasingly at the core. British financial services companies and fund managers remain the envy of many in the world and have lots of potential to grow. Despite Brexit, London remains a global financial hub.

The question will really be can bring all the interested parties on board.

One example of a potential sticking point is asking regulators like the FCA to pursue a “growth agenda”, cutting back on regulation they have just introduced, such as the Consumer Duty. It will be seen as a paradox by some critics.

Even here though there is room to change. Initiatives such as the FCA's regulatory sandbox and encouraging new products, such as the Long Term Asset Funds (LTAFs) suggest there is a way forward.

The big area of interest for Financial Planners will be the promise to bring “transformational reform” to the advice sector.

She wasn’t quite clear about exactly what she wanted to see but her words at the Mansion House this week provided some direction.

She said: “While regulation has been successful in improving the quality of financial advice being offered to consumers many people do not get the help with their finances that they want and need so the FCA will shortly consult on transformational changes to financial advice and guidance to ensure that people get the right support.”

I take that as meaning that the much-talked about, cut down financial guidance plans are now a given to go ahead and she will speed up the arrival of this new sector. Many major advice firms and investment providers will see this as the green light to get ready to launch new services. It remains to be seen if there will be an appetite for them.

The vast majority of the population who are not able to afford Financial Planning advice will soon find a new array of services using technology to support in choosing the right pensions and investment products. 

Labour has traditionally been seen as the party of consumer protection, rather than being tenaciously pro business growth, but Ms Reeves is different and that’s now clear. Change is on the way.

• This column is taking a short break next week to attend a family funeral and will be back the following week.

• The latest issue of our Financial Planning Today magazine can be viewed here: https://bit.ly/2ZdVXWz. If you have any questions or want to drop me a line to provide feedback you can reach me on This email address is being protected from spambots. You need JavaScript enabled to view it..

Kevin O’Donnell is editor of Financial Planning Today and a journalist with 40 years of experience in finance, business and mainstream news. This topical comment on the Financial Planning news appears most weeks, usually on Fridays but occasionally other days.  Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Follow @FPT_Kevin >Top Tip: Follow Financial Planning Today on Twitter / X @_FPToday for breaking news and key updates