The government has released draft rules introducing a new “targeted support” regime that would allow authorised firms to offer more personalised help with pensions and investments.
The move aims to bridge the advice gap by letting firms guide consumers without crossing into regulated financial advice.
This support would be tailored to groups of customers with similar needs. It would allow firms to make recommendations in specific scenarios, such as encouraging higher pension contributions for those not saving enough, recommending retirement products like drawdown for those unsure about accessing their pension, and helping new investors choose suitable investment products. These are the three areas where the government sees immediate potential for use.
The draft legislation creates a new regulated activity known as targeted support. It sits outside the existing definition of financial advice and is expected to follow its own conduct standards, which will be set by the Financial Conduct Authority. The new approach aims to give consumers clearer guidance while preserving strong protections.
This is part of a wider review of the advice and guidance boundary, being carried out by the Treasury and the FCA. A second consultation from the FCA explores further changes to streamline existing advice rules.
The deadline for responses to both consultations is 29 August. The final boundary review, originally expected earlier, is now due to be published a week later than planned.
