The FCA just created a new category between guidance and advice. Here's why it matters.
From April 6, 2026, the FCA's targeted support framework is live. Firms can now apply for permission to provide "targeted support": suggestions made to groups of customers with common characteristics, without it being classified as regulated financial advice.
This is the most significant change to the advice/guidance boundary in years. It creates a new middle ground between generic guidance (which anyone can give but which is too vague to be useful) and regulated advice (which is highly personalised but expensive and time-consuming to deliver).
For IFAs, this is not a threat. It is an opportunity, but only if you understand what it means and how to position your practice in response.
What is the difference between targeted support and advice?
The distinction matters because it determines what firms can say, to whom, and under what regulatory framework.
| Feature | Targeted support | Regulated advice |
|---|---|---|
| Personalised to individual? | ✘ | ✔ |
| Based on group characteristics | ✔ | ✘ |
| Requires suitability assessment | ✘ | ✔ |
| Requires FCA authorisation | New gateway | Existing permissions |
| Client pays adviser charge | Not required | Yes |
| Covers complex situations | ✘ | ✔ |
Targeted support is designed for the mass of consumers who need more than generic guidance but do not have complex enough situations to require full advice. It is aimed at closing the "advice gap": the millions of people who would benefit from some direction but cannot access or afford personalised advice.
Who is going to offer targeted support?
The FCA expects large pension providers, platforms, and wealth managers to be the primary users of the targeted support framework. These firms have the data to identify customer groups and the scale to make the economics work.
Most IFA practices will not apply for targeted support permissions directly. The regulatory overhead and the group-based approach do not align with how most small advice firms operate.
But that does not mean the change is irrelevant to you.
Likelihood of offering targeted support %
Why IFAs should care about targeted support
Three reasons this matters for your practice, even if you never apply for targeted support permissions yourself.
1. It will generate referrals. When a provider sends a targeted support message to a customer saying "you might benefit from reviewing your pension options," some of those customers will want personalised advice. They will search for a local adviser. If your website is visible, informative, and easy to engage with, you will capture some of those referrals.
2. It validates simplified advice. The FCA is explicitly encouraging firms to offer simpler, more accessible forms of engagement. This makes it easier for IFAs to offer initial assessments, triage conversations, or streamlined advice processes without fear of regulatory overreach.
3. It raises consumer expectations. When consumers start receiving targeted support messages from their pension providers, they will expect a higher level of engagement from all financial services firms, including you. A website that offers nothing more than a contact form will feel increasingly outdated compared to firms that provide instant, helpful interactions.
How to position your practice in response
The targeted support framework creates a two-tier market. Large firms handle the mass market with group-based suggestions. IFAs handle the clients who need individual attention.
Your job is to make the transition from targeted support to full advice as seamless as possible. When a consumer has been prompted by their provider to "review their pension options" and starts looking for an adviser, your website needs to do three things:
Step 1
Acknowledge their starting point
These prospects have already been told they should act. They do not need convincing that they need help. They need to know you can provide the specific, personalised help that targeted support cannot.
Step 2
Differentiate clearly from generic support
Explain what full advice gives them that targeted support does not: a complete review of their situation, personalised recommendations, and ongoing support as their circumstances change.
Step 3
Make the first step easy
A prospect who has been nudged by their provider is primed to act. Do not make them fill in a form and wait two days. Give them a way to ask a question or start a conversation immediately.
Step 4
Show your expertise in their specific area
If they were prompted about pension options, your pension content should be prominent and helpful. Content that matches their specific situation converts far better than a generic services page.
The advice gap is your opportunity
The FCA estimates that approximately 12 million adults in the UK could benefit from financial advice but do not currently access it. Targeted support is designed to nudge some of these people towards action. Once nudged, many will want proper advice.
12m
UK adults who could benefit from advice but don't access it
Source: FCA Financial Lives Survey
The advisers who benefit most from this change will be those whose websites are visible, helpful, and responsive. When a prospect searches "do I need a financial adviser for my pension" after receiving a targeted support prompt, will they find your website? And when they do, will your site answer their question or ask them to call back on Monday?
As we covered in How IFAs Can Compete With Robo-Advisers Online, the experience gap is where IFAs lose prospects. The targeted support framework is about to send a wave of newly motivated consumers into the market. Make sure your website is ready for them.
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