In our last update, we spoke about the need for change to drive new outcomes in 2026, particularly around focus, team alignment, and client engagement. As we move through Q2, those themes remain highly relevant but the market has yet to offer much in the way of relief.

Following the post-Christmas slowdown, conditions have remained challenging. While a dip in activity around Easter is typical, this year felt particularly muted. The timing, so close to Tax Year End, meant many firms prioritised closing business over initiating new conversations, resulting in a quieter and more cautious two-week period than usual.

There are, however, some subtle shifts beginning to emerge. Earlier in the year, we referenced the growing appeal of international markets such as Dubai for distribution professionals. While that remains true, recent events in the Middle East have understandably influenced sentiment, and we are starting to see some candidates exploring a return to the UK. Alongside this, there have been early indications (albeit limited) of firms reassessing their presence in the region. It is not yet a defined trend, but it may signal a slowdown in the pace of expansion we saw previously, as businesses take a more measured view of international growth.

Internally, many businesses continue to refine their structures. Management layers are being reduced, creating leaner, flatter teams. While this can improve agility, it is also placing increased pressure on sales functions, where individuals are being asked to deliver consistently in a difficult market, often with less support around them. As mentioned previously, clarity of roles and strong internal alignment have never been more important, but equally, there is a growing need to ensure teams are not simply being stretched without the tools or infrastructure to succeed.

One theme that has become even more pronounced is the importance of service. In both the retail intermediary and institutional channels, clients are placing increasing value on the quality and consistency of support they receive. Whether working with IFAs, wealth managers, or institutional clients such as hedge funds and pension schemes, responsiveness, reliability, and a genuine willingness to engage—particularly during more difficult periods—are becoming key differentiators. Firms that remain present, rather than reactive or intermittent in their communication, are building stronger, more resilient relationships.

 Alongside this, the role of marketing within distribution continues to evolve. In a more competitive and congested market, clear messaging, targeted content, and alignment with sales teams are critical. Marketing is no longer a support function in the background. It plays a central role in shaping how firms engage, position their capabilities, and maintain visibility with both intermediary and institutional audiences.

From a talent perspective, we are continuing to see strong interest in distribution and Investor Relations roles from a younger demographic. There is a clear perception of IR as an attractive and credible long-term career path, which marks a positive shift for the industry. However, opportunities at entry level remain relatively limited, and firms face a balancing act between investing in future talent and managing immediate commercial pressures. While the majority of hiring activity has been weighted toward junior to mid-level roles in recent months, our focus remains firmly across the full spectrum (from classroom to boardroom) supporting firms at every stage of their growth.

 Hiring activity itself remains measured. While there is still movement, decision-making processes are taking longer, and expectations on both sides are more considered. As highlighted in our previous note, flexibility in approach (whether through permanent hires or targeted interim support) continues to be important in maintaining momentum without overextending.

The overall picture is one that still calls for cautious optimism. The challenges are ongoing, but so too are the opportunities for firms that stay close to their clients, support their teams effectively, and remain adaptable in how they operate.

As always, I’m very happy to share further insight or discuss how these trends may be impacting your business directly. Contact me on [email protected] / 01525 864 372.