Will targeted support reshape adviser competition and client pipelines?

Hello advisers,

I’m looking for views on the FCA’s targeted support regime and what they could mean for competition, consumer engagement and the long-term economics of advice firms. 

In particular, I’m interested in how advisers see this affecting independent firms versus larger, vertically integrated groups, and whether there could be unintended consequences for client pipelines and market structure. Practical examples welcome.

Questions

Competition and market structure
Will targeted support strengthen the hand of large platforms and vertically integrated groups at the expense of independent advice firms? Why or why not?

Capital requirements
Does the proposed £500,000 capital requirement effectively rule out most small and mid-sized advice firms from offering targeted support? What does that mean for competition and consumer access?

Early consumer engagement
If advisers cannot offer targeted support, does that reduce their ability to engage consumers earlier in their financial journey — before they are “advice-ready”?

Pipeline and sustainability
Could this have longer-term implications for advisers’ future client pipelines and overall business sustainability?

Consumer Duty and conflicts
Are there risks around cross-subsidisation, conflicts of interest or fair value — particularly where targeted support is delivered within vertically integrated models?

Thanks

Ima