The Financial Conduct Authority’s (FCA) latest consultation on “targeted support” has been met with broad industry approval, with many welcoming it as a potential game changer in efforts to close the UK’s persistent financial advice gap.
The FCA proposals are to allow firms to offer a new type of targeted support to groups of consumers with common characteristics. For decades, the financial services sector has struggled to close the advice gap. However, far too many consumers who could and should be benefiting from advice are still not receiving it. There are many reasons why this is the case. Today’s announcement from the FCA has been warmly received by the industry so far.
Leaders from across the sector have been sharing their reactions to the FCA proposals with us as follows:
Simon Harrington, Head of Public Affairs at PIMFA, praised the FCA and government for their proposals, calling them transformational for how UK consumers engage with their finances. He highlighted that targeted support could help millions who have never received financial advice but stressed it’s not a silver bullet for overcoming consumer inertia. Harrington also welcomed simplified advice as a focused, lower-cost option for straightforward needs, potentially increasing access to advice and improving outcomes for more people.
Jonathan Lipkin, Director for Policy, Strategy & Innovation at The Investment Association (IA), said the proposals mark an important step to make financial support more accessible and aligned with consumer needs. He highlighted how targeted support, simplified advice, and better disclosure can boost financial inclusion and improve long-term outcomes. Lipkin reaffirmed the IA’s commitment to working with the FCA and stakeholders to create a modern, fit-for-purpose advice framework.
Jodie Gallagher, Head of UK IFA Products at FE fundinfo, welcomed the FCA’s changes as part of raising financial advice standards. While acknowledging initial industry concerns about regulatory burdens, she noted positive impacts from Consumer Duty. Gallagher emphasised the role of technology in helping advisers deliver targeted support more efficiently and cost-effectively, enabling firms to manage complexity while broadening access to financial help.
Verona Kenny, Chief Distribution Officer, Aberdeen Adviser, called the proposals “the best chance in a generation” to address the advice gap. She highlighted research showing two-thirds of over-40s are anxious about retirement, with many having done little to prepare. Kenny pledged Aberdeen’s support for the FCA’s efforts to deliver targeted support, saying it was “much needed” to help people better manage their finances.
Mike Barrett, consulting director at the lang cat, said the proposals “will undoubtedly help more consumers navigate pensions and investments,” pointing to findings that only 9% currently benefit from expert advice. However, he cautioned that consumers must be willing to act on support offered, hoping a new framework would increase engagement.
Dean Proctor, CEO at 7IM, described the proposals as “a major step forward,” emphasising the concern that many consumers leave money in cash, missing opportunities to grow their savings. He welcomed any initiatives that “drive greater understanding and informed decision-making.”
Steven Cameron, Pensions Director at Aegon, argued targeted support could offer a crucial stepping stone towards holistic advice, helping non-advised savers, including auto-enrollees, understand contribution adequacy and retirement options. However, he warned that unnecessary regulation or misaligned Financial Ombudsman Service (FOS) oversight could undermine the initiative.
Chris Jones, Financial Services Director at Dynamic Planner, said the clarity offered by the FCA was “much-needed” for advisers and that digital tools could supplement and elevate advice, enabling timely and effective interventions for clients.
Keith Phillips, CEO of The Platforms Association, welcomed the proposals as an “important intervention” for millions lacking the confidence to make investment decisions. He noted the growing role of platforms and AI in improving access to advice.
Ian McKenna, founder of the Financial Technology Research Centre, praised the FCA’s ambition but warned that previous attempts at simplified advice had failed due to FOS’ rigid approach. He stressed the need for a “more practical and realistic” mandate for the Ombudsman to avoid derailing new initiatives.
Yvonne Braun, ABI Director of Long-Term Savings Policy, called the FCA’s move “a major leap forward” that could relieve the stress faced by millions of savers. She urged for targeted support to be free, widely available, and backed by clear processes for fair compensation if things go wrong.
James Carter, Head of Platform Policy, Fidelity International, also welcomed the FCA’s proposals, stressing that without advice, many investors rely on unregulated sources like social media and AI tools, risking poor decisions. He said targeted support will help consumers make better choices and avoid harmful actions, reaching those who need it most saying ‘we welcome efforts by the FCA and government to close the advice gap and are very excited by the opportunity the proposed targeted support regime offers. This will allow flexibility for providers to engage customers at relevant points in their journey, offer suggested courses of action and support both better decision making and avoiding of a wide range of harmful actions and inactions. Today’s publication is an important further step to bringing this much needed support to consumers.’
David Lane, CEO of TPT Retirement Solutions, said the proposals address a clear need, especially as many approaching retirement remain unaware of the choices they face. He cited TPT’s own solutions to simplify retirement planning, highlighting the potential of targeted support to fill knowledge gaps.
Tom Kimche, Head of Advice at Netwealth, described the proposals as “timely and necessary,” arguing flexible models could empower consumers and build confidence around critical decisions.
Nick Eatock, CEO of intelliflo, welcomed efforts to create more inclusive advisory services, noting his firm’s investment in technology to help advisers cut costs — savings that could be passed on to clients.
Doug Brown, CEO of Insurance, Wealth & Retirement at Aviva, said targeted support could “transform how we support consumers,” stimulate growth, and reduce barriers. He cited research showing mid-retirees often lack confidence in managing their pensions without advice.
Stephen Lowe, group communications director at Just Group, called the proposals a potential “game changer,” but urged changes to Pension Wise deployment so guidance reaches people earlier, not just at retirement.
Chet Velani, Managing Director at EV, said consistency across targeted support, streamlined, and full advice is key, calling for integrated technology to enable seamless progression as consumer needs evolve.
Erin Sims, financial services senior analyst at RSM UK, said the FCA’s proposals mark a “major shift” towards outcomes-based regulation, helping bridge the advice gap with targeted support for consumers priced out of full advice. She highlighted that most adults haven’t paid for advice recently, so these changes could benefit many. Sims cautioned, however, that firms must address operational and compliance challenges, design clear support journeys, and ensure targeted support genuinely helps consumers, with training and technology like AI playing a key role in delivering better outcomes.
Jen Green, Pensions Legal Director at Eversheds Sutherland, said the FCA’s consultation strikes a sensible balance but stressed the permissions process must be efficient. She highlighted potential confusion between ‘better’ and ‘good’ outcomes saying “while the consumer duty underpins the targeted support framework, there’s a potential mismatch between delivering ‘better outcomes’ and ‘good outcomes.’ This distinction, though intentional, may cause confusion for firms.”She also warned PECR rules remain a challenge to delivering targeted support effectively.
Sasha Wiggins, CEO at Barclays Private Bank and Wealth Management, has also welcomed the FCA’s proposals as a positive step to close the UK’s £430bn investment gap by enabling consumers to access targeted, credible support and start investing with confidence. Wiggins emphasised that broader consumer participation in markets strengthens the economy and highlighted Barclays research showing many potential investors feel investing is too complicated or lack knowledge, underlining the need for accessible advice to build a more engaged, assured investing public. She said “Today’s announcement reflects the strength of collaboration and ongoing commitment between regulators and industry to create an investing framework that delivers better outcomes for consumers in support of growth.”
A turning point?
From the reaction we’ve had to this news today, the consensus across the industry seems pretty clear to us: the FCA’s targeted support framework has the potential to reshape the advice landscape, extending meaningful help to millions currently underserved. Yet success hinges on regulatory alignment, practical implementation, and consumer engagement.
As the consultation period unfolds, advisers, platforms, technology providers, investment providers and pension schemes alike will be watching closely, hopeful that this “once-in-a-generation” opportunity truly narrows the advice gap and delivers better financial outcomes for UK consumers.
