On 30 June 2025, the Financial Conduct Authority (FCA) published Consultation Paper 25/17 (CP25/17), setting out detailed rules for a new regulated proposition for targeted support in pensions and retail investments.

Targeted support

In CP25/17 the FCA is proposing a new form of support – targeted support – in pensions and investments, which would enable firms to provide suggestions designed for groups of consumers with common characteristics to help them make important decisions. Targeted support also has the potential to act as a stepping stone to simplified or more comprehensive investment advice where consumers want or need more personalised advice. The FCA is also proposing to conduct further work on simplified advice and clarifies further how guidance can be given.

The FCA is of the view that targeted support as proposed would fall within the existing definition of a ‘personal recommendation’ as set out in Article 53 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (RAO). However, the existing requirements relating to the provision of personal recommendations would make it difficult for firms to establish support models as are proposed in the consultation. Furthermore the FCA feels that it is crucial that the provision of targeted support is regulated differently to existing forms of advice, with a bespoke set of conduct standards set out in FCA rules and a dedicated authorisation gateway. To enable this, the government has announced that it will consult on proposed amendments to the RAO to create a new specified activity of targeted support. This will establish targeted support as a new service, different to existing forms of advice.

The FCA also:

  • Plans to consult on simplifying its advice rules and guidance (in the Conduct of Business Sourcebook (COBS) 9 and COBS 9A) to create a clearer distinction between simplified and more holistic advice. Further details are set out in chapter 9 of CP25/17.
  • Proposes different standards around the information firms can use for targeted support to those which apply to simplified advice. Further detail is set out in paragraph 2.54 of CP25/17.
  • Plans to improve its existing guidance on the boundary between the provision of information and guidance on the one hand, and different forms of advice on the other. In Annex 1, the FCA sets out how it plans to simplify and consolidate its existing guidance.

Next Steps

The deadline for comments on CP25/17 is 29 August 2025.

The FCA aims to publish a Policy Statement with its final rules by the end of 2025.