People who currently rely on relatives, friends or online personalities for money matters are set to receive a new form of support designed to help them make better financial choices. From April, banks and regulated financial firms will be able to offer “targeted support”, following approval from the Financial Conduct Authority (FCA). This guidance will suggest investment or pension options based on the typical needs of similar groups of consumers, without providing personalised paid advice.
The FCA says the move could significantly expand access to help, noting that many individuals who could invest are held back by uncertainty or lack of confidence. Although investing carries risk, the regulator highlighted that millions of adults with substantial cash savings could achieve better long-term outcomes. The new model is intended to sit between general guidance and bespoke financial advice, which remains available only through authorised advisers.
Under the rules, firms may outline how savings might be invested or how risk can be managed by spreading investments across different assets. The support must be appropriate, clearly explained and consider any customer vulnerabilities. While the FCA expects most providers to offer the service free of charge, it has not formally prohibited firms from introducing a fee.
Industry groups have broadly welcomed the reforms, seeing them as an important step in reducing the long-standing “advice gap”. Consumer organisations, however, warn that firms must be monitored closely to ensure recommendations remain suitable and do not push people towards inappropriate levels of risk.
