What the FCA’s New Targeted Support Rules Mean for You

Thursday 29 January, 2026

The UK’s financial regulator, the Financial Conduct Authority (FCA), has set out significant reforms to how people can receive help with their investments and pensions decisions.

These FCA targeted support rules are designed to bridge the gap between general guidance and full financial advice, helping more people make informed decisions about their money. The changes are nearly finalised and expected to take effect in April 2026, subject to legislation.

A New Way to Get Support with Investing and Pensions

Under the new rules, regulated firms, such as banks, building societies and investment platforms, will be able to offer recommendations to groups of customers with shared characteristics, rather than carrying out a full, in-depth personal assessment for each individual. These suggestions could relate to things such as how someone might think about investing savings or taking money from a pension.

The aim is to help people who currently receive little or no regulated support; recent FCA data suggest fewer than one in ten adults in the UK obtain regulated financial advice each year.

However, it’s important to understand that this new targeted support is not the same as personalised financial advice, such as the advice that Lonsdale provides to our customers. Traditional personalised financial advice involves a detailed review of your individual circumstances, financial goals and risk tolerance, whereas targeted support will deal with broad categories of customers and help people make better informed choices based on common characteristics.

Recommendations, Not Personalised Advice

The tailored guidance you might receive under the targeted support model will reflect what could be suitable for people in similar situations, but it will not take account of your full personal financial picture.

Firms offering targeted support must ensure that their suggestions are appropriate and likely to put customers in a better position, but they are not required to conduct the same level of fact-finding and suitability assessment that comes with regulated financial advice.

One practical implication of this is that firms may recommend products that they themselves offer, rather than looking across the entire investment market for the very best option for all customers.

This is not unusual, many firms provide products from their own range, but it is a reason why the support offered through targeted support should not necessarily be viewed as a replacement for independent advice that considers a wide spectrum of providers and products.

Short-Term Choices and the Risks

One important consideration with the new targeted support recommendations is that some products may be positioned as suitable for the short term yet may still carry the risk of loss.

For example, someone might place money into an investment that appears straightforward or low risk at first glance, but because the product has not been chosen with their individual circumstances in mind, its value could fall over a short period.

If this happens, they could receive less back than they originally invested. While this type of guidance can help people consider their options, it does not include the detailed assessment needed to determine whether a product is appropriate for a person’s wider financial goals, time horizon or tolerance for risk.

This is where personalised, financial advice provides an advantage. A financial adviser looks closely at your full financial position and selects products that genuinely match your long-term objectives, helping reduce the chance of being placed into an investment that might feel suitable today but may not fully support your ambitions for the future.

The Value of Tailored Advice

Fully regulated financial advice comes with strict suitability requirements. Before making a recommendation, a financial adviser must take you through a detailed fact-find and document with guidance indicating why the suggested investment is suitable for you.

They must consider a broad range of products across the market, not just those offered by a single provider, and they must explain the risks involved. This kind of detailed personal service typically attracts a fee, but it can give you greater confidence that your investment strategy is genuinely tailored to your individual circumstances.

In contrast, targeted support aims to make some recommendations more accessible and affordable, particularly for people who currently feel daunted by investment choices.

It is an important step in empowering millions of savers to engage more with their financial decisions, but it is not a substitute for the bespoke insight and reassurance that come from personalised financial advice.

What This Means for You

From April 2026, many more people in the UK may receive meaningful, tailored recommendations about investments and pensions, helping them feel more confident about making financial decisions.

Firms will be regulated to ensure they act appropriately and only offer suggestions when they are in the consumer’s interest.

At the same time, it’s vital to recognise the boundaries of this new support.

Targeted support sits between general guidance, such as high-level information about savings and investment choices and full financial advice, which is personalised to your unique situation. Where long-term planning, tax considerations or complex financial needs are involved, speaking with a qualified financial adviser continues to be the best way to secure investment choices that genuinely fit you.

Richard Porter, Independent Financial Adviser (IFA), St Albans said:

“If you are unsure what type of support is right for you, consider whether your situation is straightforward, in which case recommendations under the targeted support model may be helpful, or more complex, in which case a discussion with a financial adviser could make all the difference.”

Please note: The value of an investment and the income from it can go down as well as up. The return at the end of the investment period is not guaranteed, and you may get back less than you originally invested. The contents of this article are for information purposes only and do not constitute individual financial advice. The Financial Conduct Authority does not regulate estate planning, tax advice, trusts and wills, cash flow plans or cash flow modelling.

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