Royal London and Quilter have received regulatory permissions from the Financial Conduct Authority (FCA) to deliver targeted support.

The FCA’s targeted support regime came into effect on 6 April, aiming to bridge the gap between advice and guidance by allowing firms to offer tailored recommendations to groups of consumers with similar characteristics.

The providers are among the first to receive approval to vary their permissions to deliver targeted support.

Royal London noted it had been involved in developing the regime via the industry working group, government engagement and the FCA’s policy sprint.

It added that it was currently shaping how targeted support would build its customers’ financial resilience and will share further details on the scope of its targeted support offering “in due course”.

According to Royal London’s modelling, 21.5 million people in the UK could utilise targeted support.

“From the start, we’ve worked closely with the FCA to help design a framework that allows innovation to flourish while maintaining strong consumer protections, empowering millions of people to take better financial decisions,” said Royal London CEO of advice, Ben Hampton.

“Our investment in technology and digital capability means we will deliver targeted support in a way that is scalable, responsive and rooted in good customer outcomes.

“The regime creates a sliding scale of help, allowing people to access different levels of support depending on their needs, and at moments that really matter.”

Meanwhile, Quilter is developing its targeted support offering via Quilter Invest, its investment platform designed to support clients in the earlier stages of their investment journeys.

Quilter Invest also provides advisers with a proposition for clients who may not be ready for holistic financial advice.

“Targeted support has the potential to shift the dial for consumers who sit outside the reach of full advice,” commented Quilter chief executive, Steven Levin.

“We are pleased to have received the necessary permissions to offer this service, and now look forward to developing our offering to ensure people are not left to face important financial decisions on their own.

“Deciding whether and how to invest can be a daunting experience for people, leading to a dangerous inertia. We want to offer a simple and accessible way to get started, either on your own or through an adviser, empowering people to take action and move forward with greater confidence.

“Furthermore, we see targeted support as a crucial bridge to financial advice as customers’ needs evolve over time. Having that flexibility to enable that transition ensures we can support them through every stage of their financial lives.”

This article originally appeared in our sister publication Wealth Investment News.

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