Q1 2025 market moves: UK senior legal leaders in financial services

The start of 2025 has brought with it signs of renewed activity in the UK legal recruitment market—particularly for senior legal hires in financial services. Following a year of economic uncertainty and cautious hiring, the sector is showing encouraging signs of recovery. Here, we summarise data from our inaugural quarterly report on ‘market moves: UK senior legal leaders in financial services’, with a focus on job movements by sector, developments in financial services, and what we can expect in the months ahead.

Job moves by sector: investment management leads the way

A sector-by-sector breakdown reveals that the investment management industry is currently the most active when it comes to senior legal hires. Of all reported appointments and promotions in Q1 2025, 40.5% took place within investment management firms. This is followed by fintech (23.8%), insurance (19.0%), general financial services (11.9%), and pensions (4.8%).

The high level of activity in investment management likely reflects the sector’s continued focus on deal-making, regulatory navigation, and strategic growth—all of which require experienced legal counsel. Similarly, fintech remains a strong source of movement, with innovation driving legal complexity and prompting firms to bolster their leadership.

Insurance has seen steady hiring, too, including some high-profile moves. Notably, Aviva’s acquisition of Direct Line was a headline event that may lead to further changes in legal leadership as integration takes place. In contrast, both pensions and general financial services saw fewer appointments, though this may change in the months ahead. In particular, pension derisking transactions could drive an uptick in legal hiring as the year progresses.

Interestingly, investment banking showed relatively limited senior movement. In some cases, firms have implemented hiring freezes, while others are focusing only on business-critical roles. This points to a more cautious approach, at least for now.

Click through the interactive chart for more detail.

Internal promotions shape legal leadership

Despite an overall slowdown in external senior hiring, internal promotions remain a strong feature of the legal market. Over one in five senior legal roles were filled through internal promotion, signalling that many organisations continue to invest in career development and recognise the value of growing their own talent.

This trend also underlines the importance of internal mobility for senior Lawyers aiming to step into General Counsel or Head of Legal roles. However, the data didn’t reveal any strong sector-specific patterns in internal promotion rates. This suggests that the likelihood of promotion is more likely to depend on organisational culture, team structure, or individual performance than on the sector itself.

Job title trends reveal flexible leadership structures

When looking at the job titles of those moving into senior legal positions, the data shows a fairly even split between those stepping into General Counsel and Head of Legal roles. Less commonly, we also saw appointments to titles like Group General Counsel or Chief Legal Officer.

This variation largely reflects the size and structure of each organisation. Larger companies tend to have more layered legal teams, where Group General Counsel roles sit at the top of a well-defined hierarchy. Smaller or fast-moving firms, by contrast, often consolidate senior legal responsibilities under a single Head of Legal.

It’s important to remember that job titles alone don’t always reflect the full scope or seniority of a position. A Head of Legal in a smaller organisation might have a broader remit than a GC in a highly structured corporation. Context is everything when assessing these roles.

Looking ahead: cautious optimism for senior legal hiring

Looking to the rest of 2025, there are several reasons for cautious optimism in the senior legal hiring space. Economic indicators are beginning to stabilise, with inflation easing and the Bank of England adopting more supportive monetary policies. This may encourage organisations to resume more strategic hiring activity.

At the same time, regulatory shifts are likely to play a significant role. The FCA’s new five-year strategy (2025–2030), which aims to deepen trust, rebalance risk, and support growth, could influence how financial institutions structure and strengthen their legal leadership. As the sector responds to this new outlook, we may see increased demand for senior legal professionals who can navigate complex regulation and align legal functions with business strategy.

In specific sectors, continued deal activity—such as in pensions and insurance—may also drive additional movement. While external hiring may remain measured in some areas, organisations continue to show strong appetite for internal progression, meaning senior legal professionals looking to advance their careers will have multiple pathways to consider as the year unfolds.

For a more detailed breakdown of UK appointments of legal leaders in finance, get in touch.