On 25 March 2026, the Financial Conduct Authority (FCA) issued Consultation Paper 26/10: Simplifying the pensions and investment advice rules (CP26/10).

With the targeted support rules now in place, the FCA is focussing on completing its outstanding policy work so that the market can develop and deliver a wide range of support for consumers. In CP26/10 the FCA is delivering on two separate public commitments – to consolidate, simplify and reframe the advice rules and review its existing rules relating to financial advisers’ ongoing services.

Simplifying the advice rules

In chapter 2 of CP26/10 the FCA sets out proposals on simplifying the advice rules which include:

  • Consolidating the rules in Conduct of Business Sourcebook (COBS) 9 and COBS 9A into a single, common framework, removing distinctions between advice on products in scope of the Markets in Financial Instruments Directive II, insurance-based investment products and other life policies and pensions.
  • Deleting certain COBS rules where Consumer Duty rules provide an appropriate degree of protection for retail customers.
  • Reframing the Handbook rules and guidance so that suitability assessments must be based on sufficient information to reasonably demonstrate the suitability of a recommendation. Firms’ approaches should be proportionate to the nature and scope of the service and the complexity of any recommendation.
  • Retiring Finalised Guidance 17/8 and, in due course, publishing updated case studies that help firms understand what it means to consider ‘sufficient’ information.
  • Updating the Handbook rules and guidance so that firms are not required to assess a customer’s knowledge and experience where this would deliver no discernible benefit.
  • As part of assessing the suitability of a recommendation, simplifying the language about considering the risk that a customer is willing to take, and being clear this is separate to the need to assess the client’s ability to bear loss.
  • Consolidating the different timing and content requirements for suitability reports to align with expectations under the Consumer Duty. Requiring that suitability reports only include useful, relevant information for clients, allowing for layering of disclosure requirements and risk warnings.

The FCA is also proposing to maintain the charging and qualification requirements for advice, introduced following the Retail Distribution Review.

Ongoing advice

In chapter 3 of CP26/10 the FCA sets out proposals regarding ongoing advice service. These include:

  • Replacing the annual suitability requirement with periodic suitability reviews.
  • Clarifying the rules to make clear that firms may charge for ongoing related services linked to an earlier personal recommendation.
  • Setting out the FCA’s expectations as to how firms should fulfil their existing Consumer Duty obligations when dealing with clients who are not engaging with ongoing advice services.

Discussion chapters

Chapters 4 and 5 of CP26/10 are discussion chapters where the FCA is inviting initial feedback but not consulting on proposals on:

  • Trail commission payable to advisers and commission for non-advised distribution.
  • Suitability requirements that should apply to advice provided to professional clients.

In the draft rules the FCA proposes for now to apply the new rules to services provided to professional clients in broadly the same way that current rules apply to such services.

Next steps

The deadline for comments on CP26/10 is 22 May 2026.

The FCA will aim to publish a Policy Statement in Q4 2026.