The Financial Conduct Authority (FCA) has confirmed the 'near-final' rules for the new targeted support regime, estimating that at least 18 million people are expected to benefit from extra help with their investments and pensions as a result.

The "ground-breaking" service will allow firms to make specific suggestions to consumers, to help individuals make better informed decisions about what to do with their money. 

Underpinned by the Consumer Duty, targeted support is intended to act as a flexible and futureproof framework, enabling firms to innovate and better support their customers. 

The FCA stressed that the need for greater support is "stark", with its latest research confirming that consumers continued to find decision-making on pensions difficult, as 75 per cent of defined-contribution pension-holders, aged 45 or over, do not have a clear plan for how to take their money.  

In addition to this, just over a fifth (22 per cent) of DC pension holders aged 45 or over say they have a good understanding of their pension access options. 

The targeted support gateway is expected to open for applications in March 2026, with the regime itself expected to officially go live from April 2026, subject to legislation being passed by the government.

In the meantime, however, the FCA has already been helping firms to prepare for the gateway opening through its pre-application support service, confirming that firms which come to the gateway demonstrably ready, willing and organised to undertake targeted support will be authorised "swiftly" after the provisional go-live date in April 2026. 

And whilst the new regime is not expected to come into force until April 2026, the FCA shared its 'near-final' rules to help provide firms with as long as possible to prepare.

In particular, the FCA finalised changes to the way that firms disclose information to consumers through new rules for retail disclosures (CCIs) to further support people making better informed decisions. 

The FCA has made several changes to the rules following industry feedback, including amending the terminology from ‘better outcomes’ to ‘better position’ to more clearly state the policy intent, and amending its rules and guidance on consumer segments.

The FCA is also evolving its position on targeted support and annuities, in particular, allowing firms to direct consumers to whole of market annuity brokerages and not requiring a break between targeted support and annuity sales journeys.

Commenting on the update, FCA deputy chief executive, Sarah Pritchard, said: “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.”  

The FCA has also provided further clarification on key issues surrounding the regime, publishing joint statements with the Financial Ombudsmen Service and the Information Commissioner’s Office.

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