TISA urges FCA to refine targeted support rules to avoid confusion and ensure successful implementation
The Investing and Saving Alliance (TISA) has today urged the FCA to reconsider its proposed changes to the targeted support regime, warning that these risk causing confusion, eroding consumer confidence, and creating unnecessary operational challenges for firms.
While strongly supporting the regime in general, TISA has raised concerns about the FCA’s proposed mandatory signposting requirements for pension communications and its approach to remuneration disclosures.
Sophie Legrand-Green, Head of Policy at TISA, said:
“Targeted support has the potential to transform how consumers engage with financial services, but it must be built on a disclosure framework that is intelligible, supports consumer confidence and aligns with how firms operate. The FCA should leverage the Consumer Duty and recognise firms’ ability to judge what information is most useful to their customers, how best to communicate it, and when their services will be ready. A flexible, principles-based approach – rather than rigid disclosure mandates – will better support innovation, operational readiness and consumer confidence.
We welcome the FCA’s commitment to progressing this regime and stand ready to work with the regulator and industry to ensure its success.”
TISA has raised concerns that the FCA’s proposed mandatory signposting rules could result in firms being required to direct customers to targeted support services before those services are fully operational or available. This risks creating confusion and frustration for consumers, while placing unnecessary compliance burdens on firms, including firms that have no intention of providing Targeted Support. TISA believes Targeted Support providers should be given the flexibility to communicate in a way that reflects their actual service models and rollout timelines.
TISA also warns that the FCA’s approach to remuneration disclosures may inadvertently undermine consumer confidence and trust. By requiring firms to explain complex internal cost structures and cross-subsidisation models, the proposals risk overwhelming consumers with information that is unlikely to be meaningful or helpful. The proposals may also be a barrier to Targeted Support being made available to members of trust-based pension schemes.
ENDS
Notes to Editors:
- TISA’s full submission is available on request
- The FCA’s consultation CP25/26: Consequential Handbook changes following the proposals in CP25/17 can be accessed here
- TISA is a not-for-profit membership organisation committed to improving the financial wellbeing of all UK consumers by working collectively with the financial services industry to deliver solutions and champion innovation, for the benefit of people, our industry, and the nation.
- TISA has approximately 270 member firms involved in the supply and distribution of savings and investment products and associated services. Members include the UK’s major investment managers, retail banks, online platforms, insurance companies, pension providers, distributors, building societies, wealth managers, third party administrators, FinTechs, financial consultants, financial advisers, industry infrastructure providers and stockbrokers.