Global: FCA’s Targeted Support Plan Draws Calls for Clarity on Advice Boundaries and Consumer Access

The UK’s Financial Conduct Authority (FCA) is advancing plans for a new targeted support framework designed to help millions of consumers struggling with long-term financial planning. According to the regulator, around 12.5 million people require additional support to save adequately for retirement, while 38% of the working-age population are currently under-saving. In 2024, 59% of adults did not seek financial advice on investments, pensions, or retirement planning, and just 9% accessed regulated financial advice.

The proposed scheme, aimed at pension providers, building societies, wealth managers, and financial advisers, seeks to create a structured system of pre-defined scenarios and “ready-made” suggestions to guide consumers in making financial decisions. Following the consultation period, which ran from 30 June to 29 August 2025, the FCA is now preparing to work with pension and investment firms to shape the next phase of implementation.

Industry groups have largely welcomed the initiative but raised important concerns about its scope and design. The Personal Investment Management & Financial Advice Association (PIMFA) urged the FCA to draw a sharper distinction between targeted support and regulated financial advice. Simon Harrington, PIMFA’s head of public affairs, stressed that consumers should view suggestions as options rather than instructions. He argued that simplified advice, when supported by clear rules and appropriate qualification standards, could complement targeted support by giving consumers more certainty at an affordable cost.

PIMFA also called for clearer guidance on customer segmentation and on defining “better outcomes” for consumers. It cautioned against including higher-risk products, such as General Investment Accounts, within the scope of targeted support, and suggested lifting the ban on appointed representatives in the investment and retirement markets to broaden delivery options.

The Investing and Saving Alliance (TISA) also responded positively but flagged regulatory barriers that could limit the scheme’s effectiveness. Specifically, it warned that without changes to the Privacy and Electronic Communications Regulations (PECR), firms may be unable to engage the majority of consumers who would benefit. Sophie Legrand-Green, TISA’s head of policy, noted that “unless PECR is amended, three out of four consumers could remain out of reach,” and advocated for an opt-out outreach model with clear guardrails to prevent firms from straying into regulated advice.

Both PIMFA and TISA support the FCA’s targeted support initiative in principle, but stress that further refinement is needed to ensure the framework is practical, inclusive, and effective in reaching disengaged consumers.