The proposed launch date of ‘targeted assistance’ is April 2026
Up to 18 million Brits could receive additional support with their pensions and investments over the coming decade, following what the Financial Conduct Authority (FCA) has described as a ‘game-changing’ introduction of targeted assistance. The new system will enable financial firms to provide tailored suggestions to help consumers make more informed decisions about managing their money.
Under the scheme, customers will receive specific recommendations without requiring a comprehensive, detailed individual assessment. The regulator has stipulated that firms must ensure all recommendations are appropriate and should only be provided when they genuinely improve people’s financial positions.
Fresh legislation will need parliamentary approval before the targeted support system can be launched. The FCA confirmed that financial firms demonstrating they are prepared, capable and organised to deliver targeted support will receive swift authorisation following the proposed launch date of April 2026.
According to FCA data, around seven million adults in the UK with £10,000 or more in cash savings could be missing out on the benefits of investing throughout their lives. It is thought that these changes could help narrow the ‘advice gap’ and empower more people to make informed financial decisions tailored to their needs.
Whilst people can access personalised guidance based on their personal situations by paying for financial advice, fewer than one in 10 seek regulated financial advice. Instead, nearly one in five turn to family, friends or social media for help making decisions, the regulator said.
Although the value of investments can fluctuate, they can often outperform cash savings over the longer term. On Monday, the FCA unveiled reforms aimed at expanding consumer access to investments and enabling people to make informed decisions about risk-taking.
The regulator is proposing fresh requirements for investment product information, whilst establishing a clearer distinction between retail and professional investors who may fall outside retail regulatory frameworks.
These measures form part of broader initiatives to ‘move the dial on risk’ and steer investors towards opportunities beyond cash deposits, the watchdog explained. The proposals align with the Government’s objectives to cultivate a retail investment culture across the UK.
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The FCA has also launched a ‘firm checker’ tool to help prevent people from losing money to fraudsters – and it has said around 800,000 people reported losing money to investments or pensions‑related scams in the 12 months to May 2024. The tool is on the FCA’s website at www.fca.org.uk/consumers/fca-firm-checker.
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, long-term savings at the Association of British Insurers, said: “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.”
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Meanwhile, Keith Phillips, chief executive of investment platforms trade body The Platforms Association, added: “The industry has long called for the freedom to present information in ways that genuinely help customers understand their investment choices.
“We welcome the FCA’s targeted support initiative, which will allow platforms to deliver the right information, at the right time, to support customers to make the right investment decision. The previous system was far too prescriptive, with disclosure templates that people really struggled to engage with.
“Improving financial education is essential to giving new investors the confidence to take that first step toward making their money work for them.”
Alistair Brannan, EY UK life, pensions and personal lines leader, said: “While the investment journey is clearly a critical one, clarity on targeted support and wider reforms to pension rules will also help firms determine how they can better support the many customers at the point of retirement – a time when decisions taken can have significant and lasting implications.
“Recent EY research shows nearly a third of those at or nearing retirement age have never sought financial advice, despite being open to financial recommendations. This is a large proportion of people who are not accessing guidance that could be invaluable to them.”
Mr Brannan also added that the rules ‘are designed to respond to longstanding calls from industry for greater flexibility to better support their customers’. He continued: “The onus is now on providers across the banking, wealth and retirement sectors to consider how to respond.
“For example, with consumers demonstrating growing comfort levels in sharing personal information with firms, there is a clear opportunity to leverage data and advanced analytics to group customers with similar characteristics, so firms can offer them the relevant, targeted support the FCA recommends.”
Economic secretary to the Treasury Lucy Rigby said: “Targeted support will allow millions of people across the country to supercharge their savings and invest with confidence. This extra support for savers has the potential to be transformative for retail investment in Britain.”