UK FCA's Landmark 'Targeted Support' Regime Goes Live to Close the Advice Gap

The UK's Financial Conduct Authority (FCA) has launched one of the most significant reforms to financial guidance in a generation. The new 'targeted support' regime, established under policy statement PS25/22, took effect on April 6, 2026 after the FCA Board confirmed the final rules on February 26. The reform is the central outcome of the joint FCA-HM Treasury Advice Guidance Boundary Review, designed to bridge the wide gap between generic financial guidance and full, personalized regulated advice.

Under the new framework, authorized firms — including banks, building societies, pension providers, and investment platforms — can offer 'ready-made suggestions' designed for groups of consumers who share common financial needs, objectives, or characteristics. Unlike traditional regulated advice, targeted support does not require an individualized assessment of each consumer's personal circumstances. For example, a firm could suggest an alternative sustainable withdrawal rate to a consumer drawing down their pension unsustainably, or suggest that a consumer holding excess cash consider investing in an ISA.

The scale of the problem the reform addresses is stark. According to FCA data, there were around 7 million UK adults with £10,000 or more in cash savings who could be missing out on the benefits of investing, and fewer than 1 in 10 people obtain regulated financial advice — while nearly 1 in 5 investors turn to social media for help. The FCA estimates that over the next decade, at least 18 million people could be offered extra help through targeted support. Sarah Pritchard, deputy chief executive of the FCA, described the reform as 'gamechanging.'

Firms wishing to provide targeted support must apply for a variation of permission, and the FCA opened its authorization gateway in March 2026, supported by a pre-application support service. The regime introduces a new set of conduct standards that operate alongside the Consumer Duty, which continues to underpin the framework. Notably, the FCA revised its original 'better outcomes' language to 'better position' to clarify that targeted support is not a substitute for full advice but a means of helping consumers make more informed decisions. The Association of British Insurers welcomed the reform, with policy director Yvonne Braun calling it a significant step toward closing the advice gap. The FCA is separately consulting (CP26/10) on simplifying its broader investment advice rules.