FCA overhaul aims to bridge advice gap
The Financial Conduct Authority (FCA) has unveiled the most significant reforms to the UK’s financial advice sector in more than a decade, aiming to help millions of Britons – including many across the West Midlands – make better decisions with their money.
With over 13 million adults reportedly holding around £430 billion in idle cash savings, the new regime introduces two key support categories: “targeted support” and “simplified advice.” These are designed to offer accessible, affordable investment guidance without the heavy costs and compliance hurdles that have traditionally priced out everyday savers.
West Midlands savers to benefit
The West Midlands, home to many working-class and middle-income families, has long faced barriers to accessing quality financial advice. These reforms could prove especially transformative for communities in Birmingham, Coventry, Dudley and Wolverhampton, where individuals often hold significant cash savings but lack the means or confidence to invest.
According to FCA estimates, between 13.5 million and 30.6 million people across the UK could benefit from the new system. Targeted support services are expected to launch by April 2026, with around 100 companies – including major names like Hargreaves Lansdown and Vanguard – gearing up to offer these services.
Targeted support explained
Targeted support will allow firms to make general investment suggestions to groups of people with similar financial characteristics. For example, a bank might advise cash-heavy savers aged 30-50 to consider putting some of their money into stocks to gain better long-term returns. Crucially, this won’t count as personalised financial advice, which requires a costly and lengthy suitability assessment.
The FCA will also explore a second category – simplified advice – which will permit companies to recommend specific products based on basic personal information, without undertaking full financial reviews.
Dan Olley, CEO of Hargreaves Lansdown, said the new approach would be “truly transformational in kick-starting a thriving retail investment culture in the UK.”
Closing the retirement readiness gap
These changes come amid growing concern that many UK adults are ill-prepared for retirement. More than 40% of people over 40 have made almost no financial preparations for life after work. In the West Midlands, where pension engagement tends to lag behind the national average, the potential for impact is considerable.
Safeguards still needed
The FCA aims to strike a balance: opening access to investment opportunities while maintaining sufficient oversight to protect consumers. By easing regulatory burdens without compromising trust, the reforms could unlock billions in underused capital and boost long-term financial security for households across the country – and particularly in the West Midlands.
