The FCA has predicted that over the next decade at least 18m people could be offered extra help with their investments and pensions with the introduction of targeted support.

The new service will allow firms to make specific suggestions to consumers – so they can make better informed decisions about what to do with their money, the regulator said.

It plans to open the gateway for applications in March, before the new rules come into effect.

The FCA has pointed out that new legislation will have to be passed by the government before targeted support goes live. 

The FCA said: “We are already helping firms to prepare for the gateway opening through our pre-application support service. Firms which come to the gateway demonstrably ready, willing and organised to undertake targeted support will be authorised swiftly after the provisional go-live date in April 2026.”

It said it will also publish joint statements with the Financial Ombudsmen Service and the Information Commissioner’s Office. The two organisations support firms in offering targeted support by clarifying the approach to consumer complaints and redress, and how to consider existing direct marketing rules such as Privacy and Electronic Communications Regulations (PECR). 

The regulator said the need for greater support is stark. According to the latest FCA data, there were around 7m adults in the UK with £10,000 or more in cash savings who could be missing out on the benefits of investing throughout their lives.

Less than one in 10 people obtain regulated financial advice, the FCA said. However, nearly one in five turn to family, friends or social media for help making decisions.

The FCA said targeted support “is a flexible and futureproof framework underpinned by the Consumer Duty. It will enable firms to innovate and better support their customers.”

It said under the regime consumers will receive recommendations, but they will not be based on a full, in-depth individual assessment. Firms will need to make sure the recommendations are suitable and should only be offered when it puts consumers in a better position, the FCA said.

Sarah Pritchard, deputy chief executive of the FCA, said: “Targeted support will be game changing. It means millions of people can get extra help to make better financial decisions. 

“We also hope it will build greater confidence to invest. While investing will not be right for everyone, we know people in the UK invest less compared to the EU or US. People in the UK could be missing out on the potential benefits of investing in the medium to long term.” 

Earlier this week the FCA finalised changes to the way that firms disclose information to consumers through new rules for retail disclosures (CCIs) to further support people making better informed decisions.

The FCA is also consulting on ways to further modernise pension rules including projections and non-advised defined contribution transfers to strengthen consumer protection as part of wider government and regulatory reforms.