New City rules have launched 'targeted support', a regulated service allowing banks and financial institutions to offer free help with investments and pensions. The service aims to bridge the gap between general guidance and paid financial advice, with most advice expected to be free as commission payments are banned.
The Financial Conduct Authority (FCA) estimates about 7 million UK adults with £10,000 or more in cash savings could benefit from investing. Companies authorised by the FCA, including banks, building societies and investment platforms, can suggest products like stocks and shares ISAs or pension plans based on customers' circumstances, though not individually tailored advice.
Wealth manager Quilter and insurance group Royal London are among the first to offer the service. Quilter chief executive Steven Levin said: 'Deciding whether and how to invest can be a daunting experience for people, leading to a dangerous inertia. We want to offer a simple and accessible way to get started.' Scottish Widows is exploring AI agents to provide advice via its app.
The FCA hopes targeted support will boost retail investing, a government priority. Chancellor Rachel Reeves wants to create 'more of a culture in the UK of retail investing'. The Treasury notes the UK has the lowest retail investment among G7 countries, meaning savers 'are not getting the best bang for their buck'. However, consumer group Which? warns people should not assume a bank's investment product is best for their needs.
