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Quick comment on targeted support uptake

Journalist: Carmen Reichman, FTAdviser

ended 22. August 2025

Dear advisers

The FCA has told me it expects targeted support to be mainly devlivered by large firms, and probably predominantly via digital channels such as apps.

This seems to confirm what you have all expected. The FCA seems quite happy with that too, saying the new environment should still be “significantly better [for consumers] than what you have at the moment”.

They FCA said: “For targeted support it’d be very surprising if you ended up with lots of small firms. By its nature, that’s not where you’re going to find lots of scale offerings.

“When we think about the smaller firms and advice community, I think simplifying some of the things that are already there is where our effort is.”

They are working on simplified advice for smaller firms.

Nothing groundbreaking, but what's your response if this indeed materialises this way?

Thank you!

Carmen

4 responses from the Newspage community

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Editor
Rob Mansfield
Independent Financial Advisor at Rootes Wealth Management
It makes sense to focus on the larger firms, although some smaller firms may look to offer a simplified route as a chance to scale their operations. Simplifying the overall advice process for smaller firms would be very welcome to help combat a widening advice gap.
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Scott Gallacher
Director at Rowley Turton
Like many smaller firms, we pride ourselves on being independent advisers, acting solely in our clients’ best interests. For that reason, we have no intention of offering so-called “targeted support.” Given the potential risks of the FOS finding against firms in this area, we will actively steer clear.

It’s no surprise, however, that larger, more tech-driven businesses—often focused on sales rather than genuine advice—will pursue this market.

What is disappointing is that the FCA, which has presided over an ever-widening advice gap, appears to see this as progress.
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David Stirling
Independent Financial Adviser at Mint Wealth
There has been an advice gap for many years since regulation changed fee-charging structures, as many people with modest assets don’t meet minimum thresholds for full advice. This move could be helpful for the larger firms that can afford to invest in technology and apps to drive cost-effective advice out to this sector, albeit it will likely be very formulaic advice. For smaller firms that offer boutique, and usually independent advice, the opportunity is there to tap into this sector with a more simplified advice framework. It seems creating affordable, streamlined services with lighter-touch advice offerings could be the future solution for both small and large regulated firms.
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Benjamin Beck
Money Coach at Beck Money Coach
Targeted support sounds promising, but where does it end and personalised advice begin? Cost and trust are major barriers to accessing financial advice, so I'm curious how this model addresses both. The compliance boundaries feel unclear, and uptake will depend on how well those lines are defined. I'm all for innovation in this space, but it will be interesting to see how it plays out.