The Financial Conduct Authority has said its proposed framework for targeted support will define the shape of the UK retail investment market for the next 20 to 30 years.
Speaking at the PIMFA Compliance Conference on Thursday (25 September), Lucy Castledine, FCA director of consumer investments, urged advisers and providers to engage with consultations as the regulator looks to close the national advice gap.
She highlighted that just 9% of consumers currently take financial advice, leaving millions without access to support at critical points in their financial lives.
Around 7 million UK adults with £10,000 or more in cash savings may be missing out on investment growth, while nearly 15 million are not saving enough for retirement.
“This is a once-in-a-generation opportunity to reshape the advice landscape and improve how people engage with their financial decisions,” Castledine said.
“Full-fat advice will continue to play an important role, but targeted support and simplified advice should become part of a continuum so consumers can choose what is right for them.”
The FCA recently published a second consultation on targeted support, proposing additional amendments to align the framework with existing Handbook requirements.
It is also opening a pre-application support service to help firms prepare formal applications to deliver targeted support from 2026.
Castledine stressed the reforms are designed to balance risks while enabling scalable delivery of support. She said the Financial Ombudsman Service will apply a tailored conduct regime when assessing targeted support complaints, giving firms greater certainty.
Alongside targeted support, she called on firms to continue challenging themselves under Consumer Duty and to engage with wider FCA reforms on data decommissioning and smarter regulation.
“This is an ambitious agenda, but we cannot do it alone,” she added.
“We want to work with you to raise standards together and ensure more people can access the help they need to make better financial decisions.”
