The FCA has confirmed the introduction of targeted support, with a provisional go-live date in April 2026.
Over the next decade, the regulator says at least 18 million people could be offered extra help with their investments and pensions via targeted support.
The new service will allow firms to make specific suggestions to consumers – so they can make better informed decisions about what to do with their money.
According to the latest FCA data, there were around 7 million adults in the UK with £10,000 or more in cash savings who could be missing out on the benefits of investing throughout their lives. Less than 1 in 10 people obtain regulated financial advice, however, nearly 1 in 5 turn to family, friends or social media for help making decisions.
Consumers will receive recommendations, but they will not be based on a full, in-depth individual assessment. Firms will need to make sure the recommendations are suitable and should only be offered when it puts consumers in a better position.
The FCA plans to open the gateway for applications in March 2026, before the new rules come into effect. New legislation will have to be passed by the government before targeted support goes live.
The regulator is already helping firms to prepare for the gateway opening through its pre-application support service. Firms which come to the gateway demonstrably ready, willing and organised to undertake targeted support will be authorised swiftly after the provisional go-live date in April 2026.
The FCA will also publish joint statements with the Financial Ombudsmen Service and the Information Commissioner’s Office, clarifying the approach to consumer complaints and redress, and how to consider existing direct marketing rules such as Privacy and Electronic Communications Regulations (PECR).
Earlier this week, the FCA finalised changes to the way that firms disclose information to consumers through new rules for retail disclosures (CCIs) to further support people making better informed decisions.
It is also consulting on ways to further modernise pension rules including projections and non-advised defined contribution transfers to strengthen consumer protection as part of wider government and regulatory reforms.
Sarah Pritchard, deputy chief executive of the FCA, said: “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.”
Yvonne Braun, director of policy for long-term savings at the ABI, commented: “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.”
David Brooks, head of policy at independent consultancy Broadstone, commented: “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.”
