Targeted support: New free financial advice for Britons launched

The UK has introduced a regulated “targeted support” service that allows certain authorised banks, pension providers and financial firms to provide free, tailored suggestions about investments and pensions to groups of customers with similar characteristics. The policy aims to bridge the gap between generic guidance and full personalised, paid advice.

The Financial Conduct Authority (FCA) opened an authorisation gateway for firms to apply in March, with the regime going live on 6 April 2026. Several large providers, including Quilter and Royal London, were among the first to secure permission to offer these services. The FCA’s policy documents and government guidance set out operational and marketing boundaries intended to protect consumers while enabling firms to suggest products that may produce better returns than cash sitting in current accounts.

Regulators estimate the initiative could reach tens of millions of consumers over the coming decade; FCA analysis forecasts that between roughly 18 million and 30 million people could be offered targeted support in a ten-year appraisal period. Proponents say the measure could mobilise dormant cash into investment and retirement saving pathways, while critics warn that outcomes should be measured by improved financial positions rather than simple take-up.

In the broader economic context, targeted support is part of the UK government and regulator efforts to narrow the persistent advice gap and strengthen retirement preparedness. Public information campaigns such as the government-endorsed “Savvy Squirrel” initiative accompany the regulatory changes, aiming to increase financial awareness and participation. The eventual impact will depend on firms’ implementation, the clarity of the advice/guidance boundary and the effectiveness of consumer protection and complaints handling.

Market commentators and industry surveys indicate significant consumer appetite for accessible advice: recent polling suggests a substantial share of adults would use such services if available. Analysts caution that for targeted support to be successful it must demonstrably deliver better outcomes for consumers, maintain clear marketing standards and ensure robust oversight to avoid mis-selling or confusion between guidance and regulated advice. The FCA has coordinated with the Financial Ombudsman Service and Information Commissioner’s Office to clarify complaint routes and data-marketing requirements.