Millions of UK savers could gain easier access to investment guidance under a major reform proposed by the Financial Conduct Authority (FCA), which aims to bridge the country’s long-standing “advice gap.”
The watchdog on Monday laid out plans for a new category of consumer help called “targeted support,” allowing financial firms to offer tailored suggestions to specific groups—such as individuals not saving enough for retirement or those sitting on large cash balances earning little interest.
Alongside this, the FCA intends to loosen restrictions on what it calls “simplified advice,” a second tier of guidance that would let firms offer product suggestions without the full rigour and cost of traditional financial advice. Both changes are intended to make support more accessible to the large swathes of the population currently priced out of advice.
Sarah Pritchard, deputy CEO of the FCA, called these reforms “once-in-a-generation”, saying: “We want to help consumers navigate their financial lives and plan for the long term. These changes will boost confidence to invest, benefiting both individuals and the financial firms who support them.”
The proposals are the most sweeping shift in the UK’s financial advice rules since the Retail Distribution Review more than a decade ago. While that effort succeeded in raising advice standards, it also led to higher costs and drove many consumers away from seeking help altogether.
According to the FCA, around 7 million adults in the UK have more than £10,000 in savings but no investments—often due to uncertainty, fear of losses, or a lack of clear guidance. Barclays estimates that UK adults are collectively holding £430 billion in idle cash that could be earning more in long-term investments.
Under the FCA’s plan, “targeted support” would allow firms to suggest general actions to consumers with similar financial characteristics—without triggering the full regulatory burden associated with personal advice. For instance, firms might suggest that savers with large cash holdings consider putting some of their money into long-term investments to preserve its value over time.
The regulator estimates between 13.5 million and 30.6 million adults could benefit from the new support. A public consultation will run through December, with the regime set to launch by April 2026.
Separately, the FCA is developing rules for “simplified advice,” a middle-ground approach that would allow firms to recommend specific products based on a basic understanding of a customer’s circumstances, without needing a full suitability assessment. That framework is expected to follow at a later date.
Industry figures broadly welcomed the move. Dan Olley, CEO of Hargreaves Lansdown, said the proposals could “kick-start a thriving retail investment culture” in the UK. “There are key moments in life when people need guidance but can’t afford full advice. This could help bridge that gap.”
Vanguard’s European head, Jon Cleborne, called the new categories “essential for opening the door to long-term investing,” while AJ Bell’s Tom Selby noted that current rules often prevent firms from doing much more than offering basic facts to customers not working with a financial adviser.
Consumer groups cautiously backed the initiative, though warned against potential mis-selling. James Daley of Fairer Finance said: “This is the right direction—but the FCA needs to build strong safety rails to make sure people aren’t misled.”
