Britain's Financial Conduct Authority (FCA) rolled out near-final rules for a new “targeted support” framework that could reach 18 million people over the next decade, addressing what regulators call a persistent gap in financial guidance for pensions and investments.

The regulatory overhaul, finalized today (Thursday), allows financial firms to make specific product recommendations to groups of consumers sharing common characteristics, and without conducting the comprehensive individual assessments required for full financial advice.

Millions Missing Investment Opportunities in The UK

Around 7 million UK adults hold at least 10,000 pounds in cash savings but aren't investing, potentially missing out on better returns, according to FCA data cited in the announcement.

The problem runs deeper: fewer than one in 10 people obtain regulated financial advice, while nearly one in five investors turn to social media for investment decisions.

“Targeted support will be gamechanging,” said Sarah Pritchard, the FCA's deputy chief executive. “It means millions of people can get extra help to make better financial decisions.”

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The regulatory shift comes as UK households lag behind their European and American counterparts in retail investment participation. Between 2021 and 2023, British households allocated just 19% of their financial assets to retail investments like funds and shares, compared with 38% in the EU and 56% in the US, according to data from New Financial cited in the policy statement.

This is another step aimed at supporting investment in the UK, coming just a day after the FCA on Wednesday introduced a consumer tool designed to help people determine whether a firm is operating legally and is safe to use, following a surge in investment scams that affected 800,000 Britons.

How The Framework Operates

The system works by allowing firms to pre-define consumer segments based on shared financial needs and common characteristics, then match customers to ready-made suggestions. Unlike traditional advice, firms won't need to conduct detailed personal assessments of each customer's full financial circumstances.

Firms must clearly communicate that recommendations are designed for groups, not individuals, and disclose any limitations on the products they've considered – such as only offering their own products. The FCA received 116 responses to its first consultation and 20 to a follow-up, with most stakeholders supporting the approach.

The regulator made several refinements based on feedback. Firms can now direct consumers to whole-of-market annuity brokerages after providing retirement recommendations, though they cannot suggest specific annuity products.

The FCA expects firms to start applying for permission to offer these services in March 2026, with the regime going live the following month pending government legislation.

Strict Product Limitations Apply

The framework includes guardrails. Firms cannot use targeted support to recommend pension consolidation or suggest specific annuities, which the FCA views as too personalized for group-based recommendations. High-risk products subject to marketing Marketing Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Read this Term restrictions – like non-mass market investments (including CFDs) – are also excluded.

However, firms that provide Britons with access to stocks and shares ISAs – such as eToro and XTB – stand to benefit from this as well.

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The Consumer Duty – the FCA's outcomes-focused regulatory framework implemented in 2023 – underpins the entire regime. Firms must demonstrate their services deliver fair value and good outcomes for customers.