FCA sets out next steps for “Advice Guidance Boundary Review”

In December 2023, the government and the FCA put forward proposals to improve how people can access help with their investments (including pensions), the aim being to create a “system that ensures consumers get the help they want, at a time they need it and at a cost that is affordable” by designing “a regulatory system where commercially viable, high quality models of support can emerge so consumers can access support through regulated channels”. The FCA say that the Review provides an opportunity to rethink the way support is delivered to consumers and take advantage of new and emerging technologies to enhance consumer experiences and outcomes

Following a feedback period, the FCA has now set out the next steps in its work on closing the advice gap as part of this “Advice Guidance Boundary Review”. 

Of the three original proposals set out in the 2023 paper (targeted support, simplified advice and further clarification of the boundary), the current FCA focus is on targeted support. The FCA intends to prioritise pension support and will in December 2024 issue a consultation paper setting out how it envisages targeted support, including research on consumer interest, working for pension savers. 

By the end of H1 2025, the FCA intend to cast the net wider, and we should expect to see:

• Proposals for targeted support in relation to wider investments; and
• A consultation on draft FCA rules that will apply across consumer investment and pensions.

You can find the feedback statement here.

Alongside its feedback statement, on 15^th November 2025, a joint FCA, ICO and TPR statement was issued to retail investment firms and pension providers , aiming to give firms greater clarity about communications firms can make under the Consumer Duty that are compatible with the Privacy and Electronic Communications Regulations.