UK FSMA ‘targeted support’ rules start 6 April 2026

You’re about to see banks, apps and platforms use the phrase ‘targeted support’. The Treasury has now put that term into law under the Financial Services and Markets Act 2000, drawing a line between personal investment advice and carefully framed, group-based suggestions.

In classroom terms, FSMA is the UK’s main financial law, and the Regulated Activities Order (RAO) is the list of things that count as regulated activities. This Order inserts a new article 55A into the RAO and labels ‘providing targeted support’ as a specified activity in its own right.

Dates matter here. According to the statutory instrument published on legislation.gov.uk, the Order was made on 28 January 2026 and laid before Parliament on 30 January 2026. It partly comes into force on 23 February 2026 so regulators can set rules and firms can apply for permissions, and fully applies from 6 April 2026 across England, Wales, Scotland and Northern Ireland.

So what actually counts as targeted support? A firm uses information about you to place you in a group of people with similar characteristics or circumstances, and then gives you a recommendation presented as suitable because you are in that group. The recommendation can be to buy, sell, hold or exercise rights in securities, structured deposits or other relevant investments.

There is also a required statement, given at the same time as the recommendation. It must say that the recommendation is not based on a comprehensive review of your personal situation, that it is not specific to you, and it must describe the group features used to generate it. Think of this as a prominent honesty label that sets expectations.

Here’s a simple example you can teach with. A platform says, “First‑job savers aged 21–25 often start with a low‑cost stocks and shares ISA; if you are in this group, we recommend our starter fund.” With the statement explaining the limits and the group basis, that is targeted support. It is not individual advice about your unique finances.

Now compare that with a one‑to‑one conversation or data‑heavy assessment that builds a full picture of your income, debts, goals and risk tolerance before naming a portfolio for you. That is personalised ‘advising on investments’ under article 53. The new rules make clear that if a firm sticks to group‑based recommendations and gives the required statement, it is not giving article 53 advice.

The Order also switches on the regulatory machinery. From 23 February 2026 the Financial Conduct Authority can make or approve rules, issue guidance and consider applications for permissions under Part 4A of FSMA so firms can carry on article 55A activity. Approvals under Part 5 can also be sought where relevant. The Prudential Regulation Authority can act where it applies, and the scheme operator may make rules and guidance.

To keep the wider rulebook consistent, the legislation updates a long list of cross‑references. Existing RAO exclusions for suppliers, group companies, overseas persons and local authorities now mention targeted support alongside advice. Other laws are adjusted too, including pension transfer regulations, the Companies Act 2006 and the Terrorism Act 2000, so the new activity is recognised in the same places. No separate impact assessment has been published by the Government.

What should you look for as a consumer or student of finance? Watch for the same‑time statement. If a message says it is not specific to you and explains the group it relies on, you are reading targeted support. If you want something that weighs up your full circumstances, ask for regulated advice and check the firm’s permissions.

If you work in a firm or are teaching compliance, map any nudges, pre‑selected journeys and in‑app prompts that use customer data to form groups. Where they amount to a recommendation, prepare clear statement wording, bake it into your flows, and line up Part 4A permission for article 55A. Staff training matters because the boundary between education, targeted support and advice is set by how messages are framed.

A quick glossary to keep handy. FSMA is the Financial Services and Markets Act 2000, the UK’s core financial law. The RAO is the 2001 order listing which activities are regulated. Targeted support is the new article 55A activity: group‑based recommendations with a clear statement of limits. Article 53 covers personalised ‘advising on investments’. The FCA and PRA are the UK regulators responsible for rule‑making and supervision under FSMA.

What this means for your next lesson or team meeting: targeted support creates a middle space between generic information and personal advice, with transparency built in. Expect the FCA to publish rule text and guidance before April. Until then, treat any new prompts you see as teachable moments-read the statement, check your needs and remember you can still ask for full advice if you want it.