PS25/22: Supporting consumers’ pensions and investment decisions: rules for targeted support
Executive Summary
The FCA's PS25/22 establishes a new regulatory framework for **targeted support**—a form of financial guidance that allows authorised firms to provide ready-made suggestions to consumer segments without conducting individualised suitability assessments. This framework addresses the UK's "advice gap" by enabling firms to deliver affordable, scalable financial support to an estimated 18 million consumers within a decade, fundamentally shifting how retail investors and pension savers access guidance on investment and retirement decisions.
What Changed
The framework introduces several material regulatory changes: New Specified Activity Status Targeted support will be designated as a new specified activity under the Regulated Activities Order, meaning only FCA-authorised firms can provide this service. This creates a regulatory boundary distinct from both unregulated guidance and regulated investment advice. Purpose Statement Refinement The FCA amended its original purpose statement from "better outcomes" to "better position" to clarify policy intent and avoid confusion with the Consumer Duty requirement for "good outcomes." This distinction preserves the boundary between targeted support and regulated investment advice. Consumer Segmentation Requirements Firms must identify consumer segments with shared financial support needs or obje
What You Need To Do
- *Immediate (January–February 2026)
- *Pre-Implementation (March 2026)
- Consumer segment definitions with supporting rationale
- Ready-made suggestion frameworks
- Communication templates explaining the nature of targeted support
- subsidisation controls limiting payments to affiliated companies only
Key Dates
Compliance Impact
Urgency: HIGH
Who is Affected
Summary
Policy statements