The Financial Conduct Authority (FCA) has proposed new rules to make it easier for people to get support on investments and pensions, subject to parliamentary approval before a potential April 2026 launch
As many as 18 million Brits could be in line for extra help with their pensions and investments over the next decade, thanks to what the Financial Conduct Authority (FCA) has dubbed a ‘game-changing’ roll-out of targeted assistance. This new initiative will allow financial firms to offer bespoke advice, aiding consumers in making more informed decisions about their finances.
Under this scheme, customers will receive specific recommendations without the need for an exhaustive, detailed personal assessment. The regulator has insisted that firms must ensure all advice is suitable and should only be given if it genuinely enhances individuals’ financial situations.
New legislation will require parliamentary approval before the targeted support system can be implemented. The FCA has confirmed that financial firms showing they are ready, competent and structured to provide targeted assistance will be granted quick authorisation following the proposed launch in April 2026.
FCA data suggests that around seven million UK adults with £10,000 or more in cash savings could be missing out on the benefits of investing throughout their lives. It’s believed these changes could help bridge the ‘advice gap’, enabling more people to make financial decisions that are tailored to their needs.
While individuals can obtain tailored guidance based on their personal circumstances by paying for financial advice, less than one in 10 seek regulated financial advice. Instead, nearly one in five turn to family, friends or social media for help making decisions, according to the regulator, reports the Mirror.
Despite the fact that the value of investments can vary, they often outperform cash savings over a longer period. On Monday, the FCA announced reforms aimed at broadening consumer access to investments and empowering people to make informed decisions about risk-taking.
The regulator is suggesting new requirements for investment product information, while drawing a clearer line between retail and professional investors who may not fall under retail regulatory frameworks.
These steps are part of wider initiatives to ‘move the dial on risk’ and guide investors towards opportunities beyond cash deposits, the watchdog clarified. The proposals align with the Government’s goals to foster a retail investment culture across the UK.
The FCA has also introduced a ‘firm checker’ tool to help protect people from losing money to fraudsters – and it has reported that around 800,000 people lost money to investments or pensions-related scams in the 12 months leading up to May 2024. The tool can be found on the FCA’s website at www.fca.org.uk/consumers/fca-firm-checker..
Sarah Pritchard, the FCA’s deputy chief executive, commented: “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, policy director for long-term savings at the Association of British Insurers, stated: “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.”
Keith Phillips, chief executive of investment platforms trade body The Platforms Association, remarked: “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, commented: “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 further noted that the regulations ‘are designed to respond to longstanding calls from industry for greater flexibility to better support their customers’. He added: “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.”
Lucy Rigby, Economic Secretary to the Treasury, stated: “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.”
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