The Financial Conduct Authority has launched a targeted support framework to help firms give consumers better investment and pension guidance, with applications opening in March 2026 and a provisional launch in April.
The FCA says the new service could reach at least 18 million people over the next decade. It is designed to support those who are not taking regulated financial advice, including around 7 million adults with more than £10,000 in cash savings.
Targeted support falls under the Consumer Duty and enables firms to provide suitable recommendations without a full assessment, provided they improve customer outcomes.
The regulator has also finalised new consumer disclosure rules through its CCIs regime. In addition, it is consulting on proposals to modernise pension rules, including projections and non-advised defined contribution transfers.
FCA deputy chief executive of the FCA Sarah Pritchard says: “Targeted support will be game changing. It means millions of people can get extra help to make better financial decisions.
“We also hope it will build greater confidence to invest. While investing will not be right for everyone, we know people in the UK invest less compared to the EU or US. People in the UK could be missing out on the potential benefits of investing in the medium to long term.”
Tisa head of policy Sophie Legrand-Green says: “Targeted Support will be a game-changer for how people interact with their finances and will be an effective tool for financial service firms to support those who are stuck in the advice gap. Long-term investing can deliver better outcomes than cash savings, particularly for those saving for long-term goals and retirement, and supports wider, inclusive economic growth.
“Today’s policy statement is a vital step on the journey to ensure the ambitions of targeted support are realised, and financial service firms can reach those who need it the most. We look forward to continuing to support TISA members, the FCA and HM Treasury to deliver solutions that empower consumers to invest with confidence.
“Today’s joint statement from the ICO and FCA is a helpful outline of current rules under PECR, but we are hurtling towards a major roadblock to Targeted Support’s success. Under PECR, financial services firms will be limited in their communications and potentially only able to offer targeted support to 1 in 4 customers. If we are to reach those who are most disengaged, we need to urgently fix this, or we risk millions of consumers being left languishing in the advice gap. This is beyond the scope of firms or the regulators, and we need Government intervention to unlock the full potential of targeted support”
Broadstone head of policy David Brooks says: “Targeted support has the potential to close one of the most persistent gaps in the UK pensions and investment system which currently sees millions of people making long-term financial decisions with little to no guidance or financial advice. Empowering firms to give consumers clearer, more tailored nudges is a sensible and pragmatic step that should deliver better outcomes for more savers and investors.
“The targeted support announcement follows hot on the heels of a landmark package of proposals issued by the FCA earlier this week to encourage greater investment and clearly defines the regulator’s direction of travel. There is now a clear and concerted mission to extol the benefits of investment and its ability to deliver long-term financial security.
“Key to the success of this initiative will be execution. Firms will need absolute clarity on the advice/guidance boundary to support complex decision making and to ensure that targeted support does not create new risks or uncertainty. Trustees of occupational schemes would be wise to keep abreast of targeted support developments as it is likely that it will apply to the communications and support that they deliver to members.”
Royal London CEO of advice Ben Hampton says: “With the FCA’s final rules on Targeted Support published, the financial services industry is on the brink of a transformative shift. Its introduction promises to reshape how millions access financial help, particularly at critical life stages such as retirement. Our own modelling shows that as many as 21.5m people across the UK could benefit from Targeted Support, underlining the scale of the opportunity to help people make better decisions and build their financial resilience.”
ABI Director of Policy, Long-Term Savings Yvonne Braun says: “Targeted support has the potential to make a real difference to people’s financial lives. At a time when only 9% of people take regulated advice, targeted support will give people help they can rely on when making complex financial decisions. The FCA’s new rules mark a significant step towards closing the advice gap and will empower millions.”
