UK sets new targeted support rules from April 2026

Lots of us ask where a helpful nudge ends and regulated advice begins. The UK has now drawn a clearer line. The Treasury has made Statutory Instrument 2026/74, published on legislation.gov.uk, to create a new regulated activity called targeted support. It was made on 28 January 2026, laid before Parliament on 30 January, and it starts in two stages so everyone has time to prepare. This explainer is for learning, not legal advice.

Targeted support means a firm can use information about you to place you in a group of people with similar characteristics or circumstances, then give you a recommendation presented as suitable because you are in that group. It is not based on a comprehensive review of your personal situation, and it is not specific to you.

The Order is careful about the boundary with advice. When someone is providing targeted support, they are not advising on investments for the purposes of article 53 of the Regulated Activities Order. That matters because advice is a personal recommendation tailored to you, while targeted support is grouped guidance that still sits within regulation in its own right.

There are clear words firms must use. At the same time as the recommendation, they must tell you three things: it is not based on a comprehensive consideration of your characteristics or circumstances; it is not specific to you; and the group features used to make the recommendation must be named. What this means: you should be able to see why you were grouped, and you should know it is not one‑to‑one advice.

The scope covers a wide range of actions. A targeted support recommendation can suggest that you buy, sell, subscribe for, exchange, redeem, hold or underwrite particular investments such as securities, structured deposits or other relevant investments. It can also suggest using rights attached to those investments.

Two dates matter for diaries. From Monday 23 February 2026, the FCA can make or approve rules, issue guidance and directions, and accept and decide applications for permissions and approvals related to targeted support. The PRA can exercise its powers where relevant, and the scheme operator can also make rules and guidance. From Monday 6 April 2026, the whole regime takes effect for everyone else.

A quick classroom example helps. Imagine a bank emails customers aged 18 to 24 to say a low‑cost index fund could suit first‑time investors because many students want simple, low‑fee options. If the bank explains the group traits and confirms the message is not personal advice, that can be targeted support. If you want a recommendation built around your income, debts and risk appetite, you would still need regulated advice.

To keep the rulebook consistent, the Order updates other laws and definitions so targeted support is recognised alongside advice. That includes suppliers who sell goods or services with finance, groups and joint enterprises, sales of a company, overseas persons, managers of UK funds, local authorities, insolvency practitioners and insurance intermediaries. It also updates the Companies Act 2006, the Terrorism Act 2000 and child support regulations so the new activity is understood across the system, according to the text on legislation.gov.uk.

For firms, this creates practical tasks. If you plan to offer grouped recommendations, plan a Part 4A permission, document how you form groups, build the three required statements into customer journeys, and train staff to avoid drifting into personal advice. Applications can be made from 23 February so approval is in place by 6 April.

For consumers and learners, the takeaway is to read the wording. If a message labels you as part of a group and urges action, look for the three statements. If they are missing, ask questions. If you want something built around your exact goals and constraints, request regulated advice instead of relying on targeted support.

Quick definitions to keep handy. Guidance is general information to help you understand options. Targeted support is a grouped recommendation that is presented as suitable because you fit the group, but without a full personal assessment. Advice is a personal recommendation after looking closely at your circumstances and is regulated under article 53.

The Order extends across the UK: England and Wales, Scotland and Northern Ireland. No separate impact assessment was published, with the government stating no significant impact is expected. Key dates to teach and remember are 23 February 2026 for rulemaking and applications, and 6 April 2026 for full commencement.