The Financial Conduct Authority (FCA) has launched a further consultation on changes to support targeted support, emphasising that it wants to help those firms that want to provide targeted support to get ready "quickly".

Building on the recent momentum on targeted support, the FCA is consulting on additional changes to its handbook rules, designed to ensure that its targeted support proposals work effectively alongside existing requirements.

In particular, the FCA has outlined changes designed to ensure that its proposed targeted support framework interacts effectively with existing rules, such as those relating to pension choices.

It also includes changes to refine some of the proposals set out in CP25/17, such as those around commissions and charging, and to ensure that the proposed new targeted support activity aligns with the wider regulatory framework, such as reporting requirements.

Broader work to finalise the plans for targeted support has also continued, as the FCA confirmed that it is currently reviewing the feedback received in response to its previous consultation on the targeted support proposals.

The FCA acknowledged that there were areas where some respondents suggested we make some changes, confirming that it will respond to this feedback in its policy statement, which is expected in December.

The watchdog also emphasised the need for speed in delivering these changes, stating that whilst it does not expect all firms will offer targeted support, it wants to help those who do want to provide it to get ready quickly.

Given this, it confirmed that its Pre-Application Support Service (PASS) has opened to firms planning to apply for targeted support permissions.

"We want to help firms prepare high-quality applications ahead of the gateway opening in March 2026," the FCA stated, clarifying that this is a voluntary support service and is distinct from applying for a permission itself.

However, some in the industry have cautioned the regulator to slow down, as Aegon pensions director, Steven Cameron, raised particular concerns over the FCA's proposal for
for firms to signpost to targeted support from the time the authorisation gateway opens in March.

“While over time, it’s sensible to make consumers aware of all support options available, signposting from as early as March next year could well backfire," he stated.

"Firms will currently be considering whether to offer targeted support, and if so, in which situations. They then need to obtain permissions."

Given this, Cameron suggested that initially, targeted support should be offered by a relatively small number of firms in some simpler situations, with this hopefully expanding across more firms and situations over the coming year or years.

“A blanket signposting to targeted support in the likes of pension yearly statements from next March could simply confuse customers if they then find their pension provider doesn’t offer it and they can’t access it elsewhere," he added.

"There’s also a risk that without careful explanation, they may expect targeted support to help in situations such as pensions consolidation, which the FCA has currently ruled out.

“Aegon does believe that targeted support can be a valuable service, providing it complements and doesn’t cannibalise full financial advice. But it could confuse and frustrate customers if the FCA requires signposting ahead of when targeted support has ‘bedded in’ and become more generally available.”

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