On 11 December 2025, HM Treasury (HMT) and the Financial Conduct Authority (FCA) published updates intended to help consumers to get extra help with investments and pensions decisions, namely: HMT’s consultation response in relation to taking forward proposals related to targeted support to improve the availability and affordability of help with financial decision making, the FCA’s policy statement in relation to its proposals for targeted support (PS25/22), and the FCA’s consultation paper in relation to adapting its requirements for a changing pensions market (CP25/39).

HMT consultation response – targeted support

To enable the implementation of targeted support, HMT published a policy note setting out proposed changes to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 in July 2025.

HMT has now published its consultation response and sets out that responses were generally supportive of the proposed legislative changes to enable the implementation of targeted support and welcomed the introduction of targeted support.

HMT explains that the Government will now proceed to lay the draft statutory instrument (The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2026, as soon as Parliamentary time allows.

FCA PS25/22 – targeted support

The FCA consulted in June 2025 on detailed rules for a new regulated proposition for targeted support in pensions and retail investments.

The FCA has now published PS25/22 setting out near-final rules, with the aim of giving firms as long as possible to prepare for the new regime which is intended to allow firms to provide suggestions designed for groups of consumers with common characteristics to help them make important decisions across their pensions and investments. The framework covers the design, delivery and purpose of targeted support, with the aim of enabling consumers to receive high-quality, meaningful support in a range of circumstances.

The FCA also sets out that key changes it is making to the proposals include:

  • Amending the terminology of its purpose statement from ‘better outcomes’ to ‘better position’ to more clearly state the policy intent and avoid potential confusion with ‘good outcomes’.
  • Amending it rules and guidance on consumer segments, to require that firms do not use a level of detail that, broadly, a firm that provides investment advice would associate with a comprehensive consideration of a consumer’s characteristics or circumstances.
  • Evolving its position on targeted support and annuities, in particular allowing firms to direct consumers to whole of market annuity brokerages and not requiring a break between targeted support and annuity sales journeys.
  • Simplifying its rules and guidance on firms’ obligations for ongoing monitoring of the targeted support service, recognising the one‑off nature of targeted support.
  • Adding new disclosure requirements for firms to label the service as targeted support when delivering a ready‑made suggestion.
  • Amending its rules on charging, to remove the proposed requirement for firms to ensure that consumers understand the basis on which firms are remunerated for their provision of targeted support.
  • Amending its proposals on signposting to targeted support

The FCA explains that it is on track to enable firms to begin applying for permission to provide targeted support from March 2026, before the new rules come into effect, subject to legislation and expects the rules to take effect from 6 April 2026.

The FCA has also published two joint statements with: (1) the Financial Ombudsman Service, which clarifies how the FCA and the Financial Ombudsman Service will work together in the event of future complaints relating to targeted support and (2) the Information Commissioner’s Office, on how firms can communicate with consumers in the context of existing direct marketing rules.

FCA CP25/39 – changes to pensions requirements

The FCA is also consulting on rules to better support consumers using digital pension planning tools and consumers making non-advised decisions to transfer Defined Contribution (DC) pensions.

The FCA published a discussion paper in December 2024,  seeking feedback on whether and what further changes might be needed to certain aspects of the pensions regulatory framework. 

The FCA has explained that the proposals in CP25/39 are informed by the feedback it received and that it is proposing:

  • A new regime for interactive digital pension planning tools for in-force pensions.
  • A new process to support non-advised consumers to make informed decisions about whether and where to transfer or consolidate DC pensions. 

The FCA has asked for feedback on CP25/39 by 12 February 2026.