FCA finalises rules for new advice regime
FCA Finalises Rules for New Advice Regime
The Financial Conduct Authority (FCA) has finalised its new “targeted support” regime, designed to close the UK’s long-standing financial advice gap. The framework allows authorised firms to provide regulated recommendations to groups of consumers with shared characteristics, without carrying out a full individual suitability assessment.
Targeted support sits between generic guidance and full personalised advice. The FCA’s aim is to make financial support more accessible and affordable, particularly for consumers who currently hold savings or investments but do not engage with advisers due to cost or complexity. Firms will be able to apply for permission from March 2026, with the regime expected to go live shortly thereafter.
The FCA has been clear that targeted support is not a replacement for full advice. Firms must clearly explain its limitations and ensure customers understand when full personalised advice may still be more appropriate.
For Watchdog, this regime is a clear signal that scale, segmentation, and data quality will become increasingly important. Firms offering targeted support will need strong evidence around customer classification, product mapping, and outcome monitoring to demonstrate compliance.
Poor data, weak segmentation logic, or blurred boundaries between targeted support and advice are likely to become regulatory risk hotspots. Expect closer scrutiny of how firms define consumer groups, document decision frameworks, and evidence consumer understanding.