TheCityUK welcomes the FCA’s proposals for targeted support as it could play a crucial role in helping people navigate the savings and investment landscape with confidence. It bridges the gap between general guidance and regulated financial advice. The proposals represent a meaningful step towards improving consumer engagement with financial services, yet we believe several areas require attention to ensure their full effectiveness. These include:
- Lingering uncertainty around the distinction between guidance, targeted support, and investment advice, including ambiguity in the regulatory classification under the Markets in Financial Instruments Directive (MiFID) and the Regulated Activities Order (RAO).
- Further detail on interactions with the Financial Ombudsman Service (FOS).
- Greater clarity on supervisory expectations, particularly for interactions beyond the structured customer journey.
- Reducing ambiguity with existing regimes and ensuring alignment with data protection frameworks such as the Privacy and Electronic Communications Regulation (PECR) and General Data Protection Regulation (GDPR).
- Streamlining the authorisation process and committing to post-launch reviews.
Helping more people invest is a generational shift that needs a joined-up approach. The UK needs a clear 'North Star' for retail investment that guides people from basic financial literacy to building long-term financial resilience and wealth. Targeted support is a critical part of that journey, but should be considered alongside other reforms, and with the necessary success measures to ensure it is truly impactful.