Understanding Targeted Support

The Once-in-a-Generation Shift in Adviser Relations

From April 2026, the FCA's targeted support regime (COBS 9B) creates a new category between guidance and full financial advice. Firms must define consumer segments with common characteristics and demonstrate that ready-made suggestions put consumers in a better position. Cross-provider data is the foundation it's built on.

Live from 6 April 2026
What It Is

A New Category Between Guidance and Advice

For decades, the UK financial services industry has operated with a binary choice: generic guidance (which can't recommend anything specific) or full regulated financial advice (which requires a comprehensive suitability assessment and typically costs £1,000–£3,000+).

This leaves approximately 23 million UK consumers in the "advice gap" — people who need more than guidance but can't afford or access full financial advice.

The FCA's targeted support regime creates a third option. For the first time, authorised firms can:

In Practice

Targeted support = segment consumersdesign suggestionsdeliver supportmonitor outcomes. The critical first step is defensible consumer segmentation — and that requires data most firms don't have.

The Regime

How Targeted Support Works

Under the FCA framework (PS25/22), firms offering targeted support must:

Define Consumer Segments
Under COBS 9B, pre-define groups of consumers with shared financial needs, objectives, and common characteristics. Segments must specify including and excluding characteristics, and be granular enough to justify suggestions without crossing into full advice.
Design Suggestions
Create ready-made suggestions appropriate for each segment. Examples: suggest higher pension contributions to under-savers, or investment over cash to consumers with excess balances.
Apply the Better Position Test
Ensure suggestions put consumers in a "better position" than if they had not received targeted support. This requires evidence that the segment exists and the suggestion is appropriate.
Monitor Outcomes
Regularly review and monitor the outcomes of targeted support. Firms need to demonstrate that segments remain valid and suggestions continue to be appropriate over time.

Who Can Offer It?

The regime is available to wealth managers, advisers, platforms, retail banks, insurers, SIPP operators, and asset managers. Initially, only directly authorised firms can participate — appointed representatives are excluded.

The Problem

Why Most Firms Can't Segment Effectively

The targeted support regime sounds straightforward in theory. In practice, firms face a fundamental data problem.

To build defensible consumer segments, firms need to answer questions like:

The problem is that no single firm can answer these questions from internal data alone.

Internal Data Only

  • Own client base only
  • No visibility across providers
  • Limited behavioural context
  • Can't benchmark against market
  • Segments based on guesswork
  • Weak evidence for the Better Position Test

Cross-Provider Data

  • Market-wide behavioural patterns
  • Provider switching signals
  • Cross-wrapper capital flows
  • Evidence-based segment thresholds
  • Defensible segmentation criteria
  • Strong evidence for compliance

This is the core challenge: targeted support requires defensible segmentation, and defensible segmentation requires cross-provider behavioural data that reveals how consumers actually behave across the market — not just within one firm's book.

Cross-Provider Intelligence

Why Cross-Provider Data is the Defensible Advantage

The FCA requires firms to prove three things about their targeted support:

Cross-provider behavioural data provides the evidence base for all three. Because Wealth Intelligence aggregates real consumer behaviour across 50+ UK financial providers, we can identify patterns that no single firm's internal data can reveal.

What Cross-Provider Data Unlocks

Real behavioural signals from consumers actively making financial decisions across multiple providers — not surveys, not estimates, not internal CRM data.

50+
Providers Tracked
8,000+
Households Modelled
100%
First-Party Data

The Data That Powers Segmentation

Our dataset captures the exact behavioural signals that targeted support segmentation requires:

Example Segments

Segments Our Data Enables

These are exactly the types of consumer groups that targeted support is designed for — and exactly the groups that require cross-provider data to identify reliably:

Under-Invested Savers
A single provider can see its own clients' balances, but cannot see how ISA-to-pension contribution ratios compare across providers by age band. Cross-provider data reveals which accumulation cohorts are under-contributing relative to market norms. Suggestion: pension contribution nudge.
Unsustainable Drawdown
A pension provider knows its own clients' withdrawal rates, but has no visibility on whether those rates are sustainable compared to market-wide drawdown behaviour by age and pot size. Cross-provider data benchmarks drawdown sustainability across the decumulation population. Suggestion: drawdown sustainability review.
Pre-Retirement Gap
Firms can see their own clients approaching retirement, but cannot benchmark pension readiness against cross-provider contribution rates by income band. Our data reveals which age 50–60 income cohorts are under-funded relative to peers across the market. Suggestion: consolidation and contribution uplift.
Wrapper Optimisation
An ISA provider can see its own wrapper balances. A pension provider can see its own pots. Neither can see ISA-to-pension allocation rates across both wrappers, by age group, in accumulation and decumulation. Cross-provider data reveals which consumers are misallocating between tax wrappers. Suggestion: tax-efficient wrapper review.
Cash-to-Investment
A platform can see its own cash/investment split, but cannot compare cash holding rates across providers and age bands to identify consumers who would benefit from investing. Cross-provider data reveals the market-wide cash drag and which demographics are most affected. Suggestion: investment nudge and S&S ISA migration.
Inheritance & Transfer
No single firm can observe intergenerational capital flows across providers — where wealth is moving from decumulation-phase clients to accumulation-phase beneficiaries. Cross-provider data tracks these transfer patterns by age band and wrapper type. Suggestion: estate planning and gifting support.
Compliance & Regulatory Justification

Demonstrating PS25/22 Alignment with Independent Behavioural Evidence

Under the Consumer Duty framework and PS25/22 guidance, firms are expected to build targeted support segments using objective, evidence-based data, continuously monitor and update segments to reflect real consumer behaviour, and track outcomes to ensure interventions deliver fair consumer results. Our cross-provider behavioural dataset provides firms with the tools to satisfy all of these obligations.

How Wealth Intelligence Supports Regulatory Compliance

RequirementHow Our Dataset Addresses It
Objective, independent evidenceAll data comes from first-party consumer interactions across 57+ providers. Segments are built on real decisions, not internal guesses or surveys.
Cross-provider benchmarkingCompare your client behaviour against a representative market-wide sample, ensuring your segments are defensible.
Lifecycle coverageData spans the full wealth lifecycle: accumulation, growth, protection, transfer and decumulation, supporting segmentation across all customer stages.
Continuous update & refreshOur dataset is refreshed monthly, enabling firms to maintain segments that reflect the latest market behaviour.
FCA-aligned methodologyEvery dataset comes with detailed methodology notes, allowing firms to demonstrate to boards or regulators how segments were defined.
Outcome-focused evidenceSegment design and interventions can be validated against actual consumer behaviour, supporting fair consumer outcomes under Consumer Duty.
In Practice

Using Wealth Intelligence for Targeted Support Compliance

1

Segment Definition

Use our cross-provider behavioural benchmarks to define segments objectively. Document methodology and thresholds in your compliance pack.

2

Segment Refresh & Monitoring

Update segments monthly or quarterly using the latest dataset refresh. Compare behavioural shifts to ensure segments remain accurate.

3

Outcome Tracking & Reporting

Monitor intervention uptake, contribution patterns, and withdrawal behaviours. Capture results to demonstrate impact and effectiveness of targeted support interventions.

4

Board & FCA Reporting

Provide annual and ad-hoc reporting with dataset evidence, methodology, and outcome metrics. Demonstrate compliance with PS25/22 expectations.

For Compliance Teams

Key Benefits

Regulator-Ready Evidence

Demonstrate segment rationale and outcomes to the FCA or internal audit with independent, documented methodology.

Continuous Defensibility

Monthly refreshes keep segments aligned with real consumer behaviour, ensuring ongoing compliance rather than point-in-time snapshots.

Market-Level Benchmarking

Identify gaps and opportunities relative to the wider market, not just your own book. Cross-provider context strengthens every segment definition.

Reduced Internal Conflict

Independent evidence removes the risk of conflicts of interest when defining support interventions. The FCA expects objectivity: third-party data delivers it.

Wealth Intelligence is more than a dataset. It is a compliance engine for targeted support under Consumer Duty. By combining first-party behavioural data, cross-provider benchmarking, and FCA-aligned methodology, firms can design, justify, and maintain evidence-based segments with confidence.

Timeline

Key Dates for the Regime

11 December 2025

Near-Final Rules Published

FCA publishes near-final rules and guidance for the targeted support regime.

26 February 2026

Final Rules Made

FCA Board makes final rules for targeted support.

2 March 2026

Applications Open

Firms can begin applying for permission to provide targeted support. FCA's pre-application support service (PASS) is available.

6 April 2026

Regime Goes Live

Firms with approved permissions can begin offering targeted support to consumers.

Official Sources

FCA & Government Resources

Request a Compliance Briefing

See how our dataset can directly support your PS25/22 targeted support reporting and ongoing Consumer Duty obligations.