FCA Outlines Next Steps on Targeted Support and Risk Disclosure at Boring Money's Conference

At the Boring Money 2025 annual conference today, delegates heard from Nike Trost, Head of Department – Asset Management and Pensions Policy, at the Financial Conduct Authority (FCA) on the FCA's latest thinking and ambitions for Targeted Support, and her thoughts on feedback regarding concerns over the articulation of risk.

Investor confidence and tackling the advice gap

Ms Trost referenced the FCA's Financial Lives 2024 survey (FLS 2024) which revealed 1 in 10 people have no cash savings, and another 21% have less than £1,000 for emergencies, emphasising the importance for these consumers to understand and work towards building financial resilience. 

However, she also highlighted the significant proportion of customers that would benefit from investing, with research commissioned by the FCA finding that 68% of investors would welcome more guidance when reviewing their investments, and that 40% of consumers attribute a lack of knowledge as their main barrier to investing.

Boring Money research reinforces this point, with findings from the 2025 Advice Report showing that of the 12.3 million people in the UK falling into the advice gap, 8.7 million of these rate themselves as ‘low confidence’ and require a bit of help.

Ms Trost also reminded the room that we are collectively having this debate against a backdrop of entirely different conversations about risk in the world outside traditional financial services. The rise of crypto assets and finfluencers speak to a completely novel approach and attitude to risk.

To illustrate her point, the FCA’s FLS research found that from May 2023 to May 2024, 19% of all investors used social platforms to research or stay informed about investments. Among those aged 18-34, this trend is even more pronounced: 45% relied on social media for investment research, including 14% who turned to influencers, bloggers or vloggers.

The Boring Money Online Investing Report, which includes data from a survey of 6,070 nationally representative UK adults undertaken in January 2025, confirms the rise of artificial intelligence tools and finfluencers, revealing that:

• 23% of investors said they trusted information about investing that they found via artificial intelligence tools (up from 11% in 2024)

• 35% of investors said they trusted information about investing from financial influencers

Advice Guidance Boundary Review (AGBR)

In speaking about the Advice Guidance Boundary Review, Ms Trost revealed that the FCA is currently considering the 111 responses it received from the consultation.

She touched on 5 things which have been raised with some consistency in the feedback:

1. Clarity on the regulatory approach with some case studies: Some firms have asked for greater clarity on the regulatory approach to targeted support in the form of guidance or case studies. The FCA has had a lot of support for the outcomes-based approach it is taking, and the flexibility it provides. The regulator is considering how it can provide the additional clarity firms need while preserving flexibility in the framework.

2. The role of AI: Respondents requested the final rules allow adequate space for innovation within Targeted Support, particularly in relation to AI. The enabling of the safe and responsible use of AI plays a key part in the FCA’s thinking.

3. Use of data: Firms strongly supported the proposed approach to using data to identify groups of consumers (or segments). Enabling firms to move people between segments easily based on the support they need is one of the FCA’s priorities as the regulator finalises the rules over the coming months. As part of this, it is considering how additional information volunteered by customers should be handled and segmented accordingly.

4. Targeted Support journeys: The FCA has engaged with firms on the complex considerations around annuities, specifically on the feedback that targeted support journeys should be able torefer consumers into annuity brokerages/bureaus. It recognises the potential for Targeted Support to better inform consumers about retirement products they might not have otherwise been aware of or considered.

5. Simplification of advice proposals: Support for simplification of advice proposals has been echoed by firms who agreed with plans set out in the FCA’s latest paper, including consulting on amendments to the current rules and creating a clear distinction between simplified and more holistic advice, which will take place early next year.

FCA’s response to concerns

The industry also has questions concerning complaints and redress via the Financial Ombudsman Service (FOS), and queries around the Privacy and Electronic Communications Regulations (PECR), among others.

Financial Ombudsman Service (FOS)

Ms Trost cited the requests from firms for more certainty on how FOS will adjudicate. Together with the FOS, the FCA is working towards a proportionate approach to redress which protects consumers and gives firms confidence to operate. The regulator aims to provide more information on this approach in the coming weeks. Its work on Targeted Support should be seen in the context of wider FOS-related reforms.

Privacy and Electronic Communications Regulations (PECR)

Ms Trostemphasised that the FCA is mindful of the clear feedback from firms regarding the potential barriers that PECR poses to the delivery of Targeted Support, in addition to the important protections that the current direct marketing rules provide to consumers through GDPR. While she acknowledged that the rules are owned by the Government, she explained that the FCA is committed to working closely with relevant departments and the ICO to devise solutions that achieve the shared goal of providing Targeted Support to all customers who need it.

Authorisation

Ms Trost drew attention to the FCA’s concentration on leveraging its existing knowledge of firms, bringing together its supervision, authorisation and policy teams from the outset. This means that the people who create, authorise and apply the FCA’s rules will be on hand during pre-application support, thus providing firms with comprehensive feedback as they prepare their applications.

The FCA is also on track to open the gateway for applications in March 2026, before the new rules come into effect. Its ambition is to authorise firms to provide Targeted Support at or soon after the provisional go-live in April 2026.

CCI and the articulation of risk

Ms Trost also touched on CCI, and more specifically the articulation of risk. She acknowledged the FCA’s awareness that the current system of retail investment disclosure is not effective and that the format is ‘rigid, dull and static’.Unsurprisingly then, she explained that barely any consumers read the Key Information Disclosures, and if they do, they rarely understand them because the language is impenetrable, or don’t know what to do with most of the information due to it being poorly explained.

She stated that the FCA wants to change that, citing better disclosure as a key part of improving the retail investing culture in the UK. Ms Trost explained that the FCA is limiting the information and standardising it into three core areas: costs, performance, and risk and reward, which will enable comparability.

Interestingly, the FCA is standing firm and will not prescribe the form the disclosure must take, with the intention of allowing firms to innovate and use technology to produce more engaging materials for consumers.

Disclosures: functional, not just factual

Ms Trost alsoreferenced the FCA’s efforts to work closely with stakeholders over the summer to comb through the consultation feedback.

“We’re so grateful that Holly from Boring Money facilitated the first of three workshops we held on our proposals to make sure that there weren’t barriers to innovation.

The key challenges she left us with were making sure the disclosures were functional rather than just factual – that is, people know what to do with them and how to contextualise them[...] that they use plain English and clearly help investors understand.

Finally, that we meet retail investors where they are by ensuring those with very limited knowledge are communicated to effectively.”

A look ahead

In her closing remarks, Ms Trost recognised that not all investors are created equal.

“Some have deep experience and significant resources. They’re looking for broader diversification. They’re willing to take on more risk—and they understand the potential for loss.

These investors do not need consumer protections in the same way as a true retail investor might. In fact, those protections can restrict the range of products available to more experienced investors. So, we are thinking about how investors are categorised.

At the moment, who is treated as retail and who can be treated as professional is defined by somewhat simplistic rules that do not account for the range of knowledge an expert investor may have. It also doesn’t account for the range of opportunities that may meet their needs.

Getting this right will open up possibilities for this subset of investors, while providing better protections for those that should really be treated as retail.”