Advice Guidance Boundary Review

Objectives of our work

The Advice Guidance Boundary Review is a response to a growing concern that most consumers in the UK are not getting the financial help they need. The review is a joint initiative between His Majesty’s Treasury and the FCA, to examine the regulatory boundary between financial advice and other forms of support.

Targeted support forms a key part of our review. We want to help consumers navigate their financial lives and make effective, timely and informed decisions about their pensions and retail investments. Our proposals for targeted support and simplified advice aim to provide consumers with the additional support needed to make these important decisions.

Targeted support and simplified advice

Our proposals for targeted support will allow firms to offer suggestions to groups of customers with common characteristics. Millions more people could get help navigating their financial lives with support on pensions and investments. For example, a firm could suggest an alternative sustainable withdrawal rate to a consumer drawing down on their pension unsustainably, or it could suggest that a consumer invests their money in an ISA if they are holding excess cash in their account.

Targeted support introduces a new set of conduct standards, which, alongside the Consumer Duty, provide consumer protections.

We want consumers to have access to different types of support to meet a range of needs. These reforms should set the framework for the next 20-30 years, to support consumers now as well as future generations.

Some consumers will want assurance that a product or suggestion is suitable for their specific individual needs and circumstances. This is where simplified advice can help. 

Simplified advice can complement targeted support where a customer has straightforward needs and provide a stepping stone to more complex or holistic advice. Alongside our proposals for targeted support, we have set out plans to reform the framework for simplified advice.

We want to see a thriving and trusted market for full financial advice, simplified advice, targeted support and guidance. This supports our ambition that consumers should have access to the help they need, at a cost they can afford, when they need it.

Pre-application support service 

We're currently developing the authorisations approach we'll use when firms apply for permission to conduct the proposed new targeted support 'new specified activity'.

In the meantime, we're extending our pre-application support service (PASS)[9] to firms planning to apply for targeted support permission.

PASS is a voluntary support service for firms before they formally apply for regulatory permissions.

It gives firms the chance to engage directly with us, discuss their specific proposals, ask questions, and receive constructive feedback before submitting any formal application. This helps firms prepare high quality applications and often facilitates faster assessments and decision.

How to apply

Firms planning to apply for targeted support permission can submit a PASS form via Connect.

If you're intending to apply for permission to offer targeted support, we recommend requesting a PASS meeting promptly, so you have ample time to prepare your firm’s proposals before the gateway opens.

The PASS form requires applicants to submit a summary of their proposed targeted support business model.  

Our rules on providing targeted support are yet to be finalised. We therefore only expect firms to provide a summary based on their understanding of our consultation proposals (CP25/17)[4].

Next steps

Pre-application meetings with participating firms are expected to begin in October 2025.

The application gateway for targeted support permission is anticipated to open in Spring 2026.

Rules in this area are subject to consultation. As well our proposals (CP25/17), the Treasury is also consulting on the new specified activity.

We aim to finalise our rules and publish a policy statement by the end of 2025.