The FCA has unveiled plans to help millions in the UK better navigate pensions and investments by expanding access to financial advice.
Under the proposals, firms could offer ‘targeted support’ to groups with similar financial needs, including people drawing down pensions unsustainably or those holding excess cash instead of investing. The FCA said safeguards will protect consumers while also supporting investment and innovation.
FCA deputy chief executive Sarah Pritchard said, “We want to help consumers navigate their financial lives and plan for the long term. Some of the most difficult financial decisions we face are how to save, invest and prepare for a comfortable retirement.
“These once-in-a-generation reforms will help people navigate their financial lives and give them greater confidence to invest. This is a win-win for consumers and firms alike.”
Chancellor of the Exchequer Rachel Reeves highlighted the broader benefits for households, saying, “Too many people are missing out on the support they need to build a more secure financial future for themselves and their families. Today’s reforms will make a real difference to help working people make better long-term financial decisions, ultimately putting more money in their pockets as part of our Plan for Change.”
The FCA’s latest survey found only 9% of adults received advice on pensions or investments in the past year, with many deterred by lack of knowledge or confidence. About 7m adults with over £10,000 in cash savings could benefit from investing.
The FCA is consulting on the proposals over the next eight weeks and says the reforms are part of its broader strategy to boost consumer confidence and economic growth.
Commenting on the change, Areg Nzsdejan, co-founder and CEO of Cardamon, said in a LinkedIn post, “For the first time in a decade, the FCA is reversing rules that had priced millions out of financial advice. By scrapping onerous suitability hurdles and introducing “targeted support”, the regulator is correcting a policy that widened the advice gap.
“This change gives investment firms – and any business looking to enter the market – the chance to reach the 13.5 million to 30.6 million people the FCA says could benefit. It is a huge opportunity for organisations that can act quickly. The key is to understand the new rules early and execute efficiently. Cardamon (YC W25) is here to power this.”
For more, visit RegTech Analyst
Read the daily FinTech news
Copyright © 2025 FinTech Global
