On 12 December 2024, the Financial Conduct Authority (FCA) published a consultation paper, CP24/27, on the Advice Guidance Boundary Review – proposed targeted support reforms for pensions.

In CP24/27, the FCA sets out its high-level proposals for targeted support in pensions, as part of the Advice Guidance Boundary Review (AGBR), following the initial proposals that were outlined jointly by the FCA and the Government in DP23/5. The proposals aim to tackle the gap that exists between bespoke financial advice and guidance, to help consumers, at scale, to make effective, timely and properly informed decisions about their pensions. The FCA sets out how it sees this support working, and the conduct standards it is proposing to ensure better outcomes for consumers.

Under the proposals, targeted support would allow firms to provide support to consumers in different scenarios; for example, if they identify someone is drawing down on their pension unsustainably, or where a consumer is facing uncertainty about how to take a retirement income. Firms would be able to provide a bespoke suggestion to specific groups of consumers who share the same characteristics. The FCA is suggesting that targeted support is provided for free.

Next steps

The deadline for responses to CP24/27 is 13 February 2025.

The FCA notes that it is not consulting on rules currently. It is developing related targeted support proposals for wider investments and plans to consult on detailed requirements with draft rules and guidance by the end of H1 2025 that will apply across retail investments and pensions. The FCA also intends to provide an update on its work on simplified advice and providing further clarity around the advice guidance boundary, which was also explored in DP23/5.

HM Treasury statement

In a statement on CP24/27, HM Treasury noted that the Government is committed to driving this work forward and will work closely with the FCA to assess options for implementation. It confirmed that any feedback received will inform its and the FCA’s next steps on the AGBR.