What happened?
Following a joint review with the government on the boundary between financial advice and guidance, and two consultation papers, the FCA has published its policy statement for the new targeted support regime. The framework is designed to provide tailored support for pension and retail investment customers, and the regulator cites figures suggesting around 7 million UK adults with cash savings of £10,000 or more may be missing out on investment opportunities.
The FCA has published near-final rules, and firms will be able to apply for permission to provide targeted support from March 2026, ahead of the regime’s expected implementation on 6 April 2026, subject to legislation. Some firms have already engaged with the FCA’s new Pre-application support service.
Why does it matter?
Targeted support will be a distinct regulated activity, meaning firms must obtain permission before offering it once the authorisation gateway opens. This marks a departure from the traditional divide between generic guidance and personalised advice, allowing firms to offer ready-made suggestions to customer segments without a full individual assessment.
Who is affected?
Firms operating in pensions and retail investments that want to offer targeted support, and the compliance, product and governance functions that will need to design and monitor it.
Key risks
- Offering targeted support without the required permission once the authorisation gateway opens in April.
- Customer segments that are too broad to justify the support given, or so narrow that they cross into individualised advice.
- Weak monitoring and governance arrangements that cannot demonstrate the support is delivering the intended benefit.
- Customer communications that do not meet FCA and ICO expectations on marketing and data protection.
Actions to take
- Assess whether the firm needs to apply for permission to offer targeted support from March 2026.
- Define customer segments that are granular enough to justify the support without becoming individualised advice.
- Review product governance against the FCA’s PROD rules for the segments to be served.
- Check customer communications against the joint FCA/ICO guidance on marketing and data protection.
Wider implications
The underlying principles of the Consumer Duty continue to apply, so firms must be able to show that targeted support genuinely helps consumers pursue their financial objectives and avoid foreseeable harm, rather than treating it as a lighter-touch alternative to advice.
Recommendations
TCC recommends that firms invest early in governance, data foundations and customer-centric design so they can evidence good outcomes and maintain a clear boundary between targeted support and regulated advice ahead of the April 2026 deadline.
Supporting sources
Frequently asked questions
What is the FCA's targeted support regime?
It is a new regulated activity that lets firms give ready-made suggestions to customer segments with similar characteristics, without a full individual assessment, sitting between generic guidance and personalised advice.
When can firms apply for permission to offer targeted support?
Firms will be able to apply for permission from March 2026, ahead of the regime’s expected start on 6 April 2026.
Does the Consumer Duty still apply to targeted support?
Yes, firms must still show that targeted support helps consumers pursue their financial objectives and avoid foreseeable harm.
What should firms do before the deadline?
Define appropriate customer segments, strengthen governance and monitoring, and check communications against FCA and ICO guidance on marketing and data protection.
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- Wealth Management & Financial AdviceTCC helps wealth managers, financial advisers, networks, platforms and consolidators strengthen compliance, evidence customer outcomes and manage regulatory risk. Every engagement is designed to deliver practical improvements, stronger governance and regulator-ready evidence. For more than 25 years, we have helped FCA-regulated firms navigate regulatory change, supervisory reviews and business growth.