How financial advisers can position themselves around intergenerational wealth concerns

Executive Summary

The 2024 Budget has created unprecedented tax anxiety amongst UK investors, with 45% of clients expressing greater concern about their financial future according to HSBC Life’s 2025 “Three I’s” Report. Forward-thinking adviser firms are transforming this challenge into a competitive advantage by repositioning their wrapper selection expertise—particularly through onshore bonds.

The New Tax Reality: Why Default Strategies No Longer Work

Rising Tax Burden Creates Adviser Opportunity

The 2024 Budget’s changes—including increased capital gains tax rates and frozen income tax thresholds—have driven demand for tax-efficient solutions. However, HSBC Life’s comprehensive report reveals a concerning gap: while client anxiety soared, only 56% of advisers routinely explain wrapper tax implications to their clients.

The Default Trap: Why One-Third of Advisers Are Missing Opportunities

Industry analysis suggests that one-third of advisers default to unwrapped collectives after maximising ISAs and pensions, prioritising flexibility over tax efficiency. This aligns with HSBC’s finding of a “persistent reliance on familiar solutions,” creating significant opportunities for advisers who take a more comprehensive approach to wrapper selection.

The Onshore Bond Renaissance: Why Now?

Tax Environment Shifts the Equation

For higher-rate taxpayers facing increased tax burdens, onshore bonds now offer compelling advantages:

• Tax deferral capabilities that allow investors to manage timing of tax liabilities
• Flexible withdrawal strategies enabling optimised income planning
• Intergenerational planning benefits when paired with appropriate trust structures

Note: Analysis of post-2024 CGT rates compared to bond efficiency represents logical interpretation of current tax landscape rather than explicit modelling in the source report.

Strategic Marketing Campaigns That Convert Tax Anxiety

Campaign 1: “The Tax Efficiency Health Check”

Target Audience: Existing clients with traditional investment portfolios
Core Message: “When did you last review whether your investments remain tax-optimal after the Budget changes?”
Implementation: Systematic portfolio reviews focusing on wrapper optimisation

Campaign 2: “Great Wealth Transfer Readiness”

Target Audience: Affluent families approaching succession planning
Core Message: “Is your family prepared for the £5.5 trillion wealth transfer?”
Implementation: Multi-generational family planning consultations

Disclaimer: The £5.5 trillion figure reflects broader UK wealth transfer projections rather than HSBC-specific client data.

Campaign 3: “Beyond ISAs and Pensions”

Target Audience: Sophisticated investors who believe they’ve maximised tax efficiency
Core Message: “Think you’ve optimised everything? The new tax landscape creates fresh opportunities.”
Implementation: Advanced wrapper strategy sessions highlighting onshore bond benefits

Consumer Duty: From Compliance Burden to Competitive Advantage

Proactive Suitability as Market Differentiation

With 42% of clients either sub-optimally invested or uncertain about their tax efficiency, firms that leverage Consumer Duty requirements to enhance wrapper discussions can create significant competitive differentiation.

Progressive advisory firms are repositioning Consumer Duty obligations as service enhancements:

• Enhanced suitability processes that explicitly consider all appropriate wrappers
• Proactive client communications addressing evolving tax landscapes
• Multi-generational engagement strategies to retain assets across family transitions

The Competition Risk

Adviser firms that fail to proactively address client tax concerns risk losing assets to more engaged competitors or direct-to-consumer platforms targeting dissatisfied investors.

Implementation Framework for Advisory Firms

Phase 1: Foundation Building (Months 1-2)

• Audit existing wrapper selection processes against Consumer Duty requirements
• Develop team expertise in onshore bond applications and benefits
• Create clear communication materials explaining tax implications of different wrappers

Phase 2: Client Portfolio Optimisation (Months 3-4)

• Conduct systematic reviews of existing client portfolios for tax efficiency opportunities
• Identify specific onshore bond applications within current client base
• Implement enhanced documentation processes demonstrating comprehensive suitability consideration

Phase 3: Market Positioning (Months 5-6)

• Launch targeted communications to affected client segments
• Engage next-generation family members in wealth planning discussions
• Position firm as specialist in post-Budget tax planning strategies

Measuring Success: Key Performance Indicators

Client Engagement Metrics

• Percentage of client portfolios with optimised wrapper allocation
• Client satisfaction scores regarding tax planning advice quality
• Asset retention rates through family wealth transfers

Business Development Outcomes

• New client acquisition attributed to tax planning expertise
• Average assets under management per client relationship
• Revenue growth from enhanced advisory services

The First-Mover Advantage: Why Timing Matters

Market Positioning Benefits

Adviser firms that embrace comprehensive wrapper selection strategies now will establish market leadership before competitors recognise the full opportunity. With client tax anxiety at historic levels, firms providing clear, proactive guidance will earn disproportionate client loyalty.

Regulatory Defensibility

Consumer Duty compliance through enhanced suitability processes not only meets regulatory requirements but creates robust client relationships that competitors cannot easily replicate.

Opinion: The strategic recommendations regarding implementation roadmaps and first-mover advantages reflect established industry best practices rather than direct sourcing from the HSBC report.

Conclusion: Transforming Challenge Into Sustainable Advantage

The 2024 Budget has fundamentally altered the UK investment advisory landscape, creating both unprecedented challenges and significant opportunities for financial adviser firms. While the HSBC Life report confirms core trends around client anxiety, adviser gaps, and onshore bond opportunities, the strategic response requires firms to move beyond traditional approaches.

Those advisers who recognise wrapper selection as a core differentiator—rather than a technical afterthought—will thrive in the evolving regulatory and tax environment. The question for advisory firm leaders is not whether to adapt, but how quickly they can transform their approach to capture the substantial opportunities that tax-conscious clients represent.

Additional Resources

• Access the complete HSBC Life “Three I’s of Investable Capital” report
• HM Revenue & Customs guidance on investment wrappers
• Financial Conduct Authority Consumer Duty resources

Transparency Note: Where direct sourcing from the HSBC report is unavailable, interpretive analysis uses qualifying language such as “industry insights indicate” or “analysis suggests” to ensure clarity about the source and nature of recommendations.