Treasury seeks comments on targeted support legislation
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To enable ‘targeted support’, the Treasury is asking for comments on proposed changes to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001. It aims to legislate in 2025, subject to feedback and parliamentary time.
Alongside the draft statutory instrument, the government has published a policy note on targeted support. Part of the chancellor's 'Leeds Reforms' relaxing financial services regulations, the documents should be read together with the Financial Conduct Authority’s recently published consultation, it noted. Any comments should be emailed to targetedsupport@hmtreasury.gov.uk by 29 August 2025.
The policy note explains that targeted support – where consumers receive a financial recommendation based on limited information about them – would fall into the existing definition of a ‘personal recommendation’, but that firms would need permissions separate from those for providing financial advice.
The Treasury has not yet decided if there will need to be transitional provisions or consequential amendments to other pieces of legislation to ensure that targeted support operates as intended.
Industry representatives have previously highlighted concerns about direct marketing rules being a barrier, because of the way that the ‘soft opt-in' exception to electronic mail consent requirements under the Privacy and Electronic Communications Regulations operates for auto-enrolled pensions.
The document noted that the government is working closely with the Information Commissioner’s Office and FCA to gather evidence on the extent of the problem and look at policy options.
“We are exploring a range of options in this space which could include further guidance from the ICO and the FCA and/or legislative change to enable automatically enrolled pension providers to operate the soft opt-in,” the Treasury said.
It added that “any changes will need to ensure that consumers’ preferences and data protection rights – including the right to object to direct marketing – are respected and that the automatic enrolment system continues to operate effectively”.
Alongside the draft statutory instrument, the government has published a policy note on targeted support. Part of the chancellor's 'Leeds Reforms' relaxing financial services regulations, the documents should be read together with the Financial Conduct Authority’s recently published consultation, it noted. Any comments should be emailed to targetedsupport@hmtreasury.gov.uk by 29 August 2025.
The policy note explains that targeted support – where consumers receive a financial recommendation based on limited information about them – would fall into the existing definition of a ‘personal recommendation’, but that firms would need permissions separate from those for providing financial advice.
The Treasury has not yet decided if there will need to be transitional provisions or consequential amendments to other pieces of legislation to ensure that targeted support operates as intended.
Industry representatives have previously highlighted concerns about direct marketing rules being a barrier, because of the way that the ‘soft opt-in' exception to electronic mail consent requirements under the Privacy and Electronic Communications Regulations operates for auto-enrolled pensions.
The document noted that the government is working closely with the Information Commissioner’s Office and FCA to gather evidence on the extent of the problem and look at policy options.
“We are exploring a range of options in this space which could include further guidance from the ICO and the FCA and/or legislative change to enable automatically enrolled pension providers to operate the soft opt-in,” the Treasury said.
It added that “any changes will need to ensure that consumers’ preferences and data protection rights – including the right to object to direct marketing – are respected and that the automatic enrolment system continues to operate effectively”.
