The Investing and Saving Alliance (Tisa) has urged the Financial Conduct Authority (FCA) to revise elements of its proposed targeted support regime, warning that parts of the draft rules could create confusion for consumers and operational challenges for firms.
Tisa says it has overall support for the initiative, but stressed that the FCA’s plans for mandatory signposting in pension communications and remuneration disclosures may hinder effective implementation.
It warned that compulsory signposting could require firms to direct customers to targeted support services before those services are fully developed or available. It says this risks confusing consumers and adding unnecessary compliance burdens, including for firms not planning to offer targeted support. Tisa argued that providers should retain flexibility to communicate in line with their actual service models and rollout schedules.
Tisa also raised concerns that the FCA’s proposed remuneration disclosure requirements could undermine consumer confidence. It said asking firms to outline complex internal cost structures and cross-subsidisation models would overwhelm consumers with technical detail that is unlikely to be beneficial. It added that the proposals could act as a barrier to delivering targeted support within trust-based pension schemes.
The FCA’s targeted support regime aims to bridge the gap between full financial advice and general guidance, providing consumers with more tailored information to support better financial decisions.
Tisa head of policy Sophie Legrand-Green says: “Targeted support has the potential to transform how consumers engage with financial services, but it must be built on a disclosure framework that is intelligible, supports consumer confidence and aligns with how firms operate. The FCA should leverage the Consumer Duty and recognise firms’ ability to judge what information is most useful to their customers, how best to communicate it, and when their services will be ready. A flexible, principles-based approach – rather than rigid disclosure mandates – will better support innovation, operational readiness and consumer confidence.
“We welcome the FCA’s commitment to progressing this regime and stand ready to work with the regulator and industry to ensure its success.”