The targeted support regime 

A new beginning for consumer engagement 

What is targeted support?

Targeted support is a regulated activity introduced in April 2026 designed to bridge the advice gap in UK financial services. It allows firms to offer ready made suggestions to specific consumer segments without the cost or complexity of a personal recommendation, ensuring customers are put in a better position to take action.  

The introduction of targeted support represents potentially the most significant shift in the distribution landscape for a generation. For too long, the industry has been polarised between full financial advice, based on personal recommendations, and guidance, which provides information but stops short of suggesting a course of action. 

Targeted support aims to fill this substantial gap. By establishing a new regulated activity under the Advice Guidance Boundary Review, it allows firms to make specific suggestions designed for groups of consumers with common characteristics. This provides a vital middle ground, enabling firms to direct people toward products or actions that could deliver better financial outcomes, such as investing cash savings or increasing pension contributions. 

Moving from intention to action

The advice gap is not just a lack of information; it is a lack of action. Success isn't about creating good intentions; it is about ensuring consumers take meaningful steps to improve their financial future. 

As one industry leader noted during our recent roundtable, "Want to get customers invested but just giving a product won't make any difference if they're not engaged to take action". 

Targeted support offers a powerful mechanism to overcome inertia by leveraging the "people like you" concept. By presenting suggestions based on what similar cohorts have done, much like a Netflix or Spotify recommendation, firms can reduce decision fatigue and frame the suggestion as a value-added, expected part of the service. 

To achieve this, the journey must be engineered for frictionless execution. The process should be designed so that accepting a suggestion is the easiest path, minimising the need for lengthy applications or complex forms. 

Moving from intention to action
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The power of the 'alert'

We believe targeted support is most effective when positioned as a proactive "alert". Much like Google Maps or Waze provides a real-time path correction to avoid traffic, targeted support should intervene at contextual moments to avoid negative outcomes. 

For example, detecting a significant income change could trigger a prompt: "Based on customers in your segment, we suggest you increase your pension contribution". 

Critically, this must be a two-step process: 

  1. The Alert - a timely, segment-based suggestion to grab attention.
  2. The Assessment - signposting the client to a modeller or tool that demonstrates the specific implications of that suggestion on their personal financial future. 
 

Critical success factors for 2026

Building a targeted support proposition requires more than just compliance; it requires a re-engineering of the financial planning experience. 

  • Intelligent segmentation - firms must balance the need for data points with regulatory risk. As highlighted by industry experts, there is a fine line to tread: "Particularly if you know too much about the customer it ends up being personalised advice". Segments shouldn't be too broad to be meaningless, nor so individualised that they cross into personal advice. 
  • The continuum of care - Targeted Support should not be viewed in isolation. It must sit within a seamless continuum alongside guidance, hybrid advice, and traditional advice. 

  • Consumer Duty alignment - rather than just following rules, firms must use the Consumer Duty framework to innovate, keeping the better position of the consumer at the heart of the design. 

     

  • Data maturity - success relies on a mature data strategy that can effectively integrate legacy systems to deliver timely, relevant alerts. 

     

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A catalyst for change

The jury is still out on whether targeted support will be a revolution or a damp squib. However, we believe it has the potential to serve millions of underserved customers if the industry grabs the opportunity. 

By using targeted support as a "stepping stone" rather than a substitute for holistic advice, firms can triage customers effectively, giving them the confidence to take action and, where necessary, guiding them toward more comprehensive hybrid or traditional advice services. 

Is your firm ready for the April 2026 regime?

Download our Targeted Support – A New Beginning paper

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