28 August 2025
If you are covering the closing of the FCA's Targeted Support consultation tomorrow, please see the following comment from Steven Levin, CEO of Quilter:
"We welcome the FCA’s ambition to improve consumer outcomes through Targeted Support. This initiative has the potential to be a transformational shift in how the financial services industry reaches people who fall outside the scope of full financial advice. By offering timely, proportionate and flexible support, it can help bridge the advice gap and empower more consumers to make confident, informed decisions about their money. If designed and implemented well, it could deliver better long-term outcomes for underserved customers and give them the tools they need to take control of their financial future. But to realise that potential, it is vital that the framework is built on clear rules, workable processes, and a regulatory environment that provides both consumers and firms with the confidence to engage.
"A critical enabler is the creation of a genuine safe harbour for firms delivering Targeted Support. Without clear and consistent alignment between the FCA and the Financial Ombudsman Service on how these journeys will be assessed, firms face the risk of hindsight regulation. This uncertainty can stifle innovation, limit access and deter firms from engaging fully. Safe harbour protection would give firms the confidence to innovate, make proportionate recommendations, and focus on good customer outcomes without fear of retrospective challenge. It is essential that the regulator sets out transparent assessment criteria so firms can operate with certainty from day one.
"Other key enablers include clear guidance on data use to help firms identify and engage the right customers without inadvertently falling into providing personal holistic advice, alongside reforms to direct marketing rules so that timely interventions are possible. We believe well-run advice networks should be able to deliver Targeted Support through their appointed representatives, enabling it to be scaled quickly without compromising standards.
"However, Targeted Support cannot work in isolation. It should form part of a broader ecosystem that includes greater access to financial education and reforms to disclosure rules so they inform rather than intimidate. The regulator should ensure that any measures are designed to encourage participation rather than create unnecessary barriers.
"When paired with Simplified Advice, Targeted Support can create a more inclusive continuum of help for consumers, with each solution playing a distinct role without blurring regulatory boundaries. Together they can ensure people receive the right level of support at the right time, giving them the best chance of achieving their goals. A robust safe harbour framework, coupled with proportionate regulation and a focus on education, is the best way to encourage innovation, build trust, and genuinely narrow the advice gap."
