This week, the Financial Conduct Authority (FCA) takes a bold step forward towards the introduction of targeted support. The framework is intended to help firms provide more personalised support to retail consumers, without crossing the regulatory boundary into personal recommendations. But many practical considerations for governance, controls and wider implementation lie ahead.
We also highlight the publication of the roadmap that sets the course for the future shape of payments in the UK which will require careful coordination between all regulators.
Elsewhere, there’s an update on the landmark motor finance compensation scheme, Solvency II and forthcoming consumer credit data reforms.
The FCA has opened its authorisation gateway for firms that want to provide targeted support, ahead of the new regime going live on 6 April 2026. The move marks a major step in reshaping how consumers receive help with pensions and investments. The regulator estimates that around 23 million people are underserved by the current advice and guidance market. The new framework will let authorised firms offer suggestions to groups of consumers with similar characteristics, helping them make informed decisions at a cost they can manage.
The FCA is urging firms to prepare now so they can offer targeted support from day one. It expects providers to make full use of the reforms and to be bold in developing propositions that close the advice gap. Firms can engage with the FCA’s Pre-Application Support Service (PASS) to check expectations and improve the quality of their applications. Applications must be submitted through Connect.
Read more on the authorisation gateway for targeted support
The Payments Vision Delivery Committee has published a three-year plan that sets out the future shape of payments in the UK. It aims to give firms clarity on upcoming regulatory and infrastructure changes so they can plan and invest with confidence.
The plan maps the consultations and reforms within the National Payments Vision and brings together work by the HM Treasury (HMT), the Bank of England, the FCA and the Payment Systems Regulator (PSR). Key milestones include:
Read the FCA introduction to the Payments Forward Plan
Read the Payments Forward Plan
The FCA has published a brief update as it considers over 1,000 responses to its motor finance compensation scheme proposals. The FCA reiterates that no firm decision has been made on whether to proceed with compensation scheme. If the scheme does proceed, the FCA expects to publish final rules in late March, and this announcement will occur outside of market hours (with the date being confirmed in advance).
The FCA has provided details of some changes that it plans to make to a proposed compensation scheme, should this proceed:
The FCA’s view is that the streamlined proposals should ensure that, even with the implementation period, many customers should still receive compensation in 2026.
Read the FCA’s statement on motor finance compensation scheme
The PRA has opened Consultation Paper CP4/26 to refine parts of the UK Solvency II own funds framework. The paper aims to cut avoidable burden and remove ambiguity, giving insurers clearer, more consistent rules. Key changes include removing the need for firms to seek permission before classifying equityaccounted subordinated instruments into own funds tiers, with related changes to reporting templates. The PRA also plans to clarify the correct sequencing for refinancing deals that mix tender offers with new issuances, and to correct drafting issues that have created uncertainty in the current rulebook. In addition, the PRA intends to restate the remaining relevant European Insurance and Occupational Pensions Authority guidelines within its own supervisory statements, helping firms rely on a single set of domestic expectations.
The consultation runs until 24 April 2026, with reporting changes aligned to yearend 2026 submissions and other amendments expected in the second half of 2026.
The FCA has set out plans to tighten how firms share and use consumer credit data across the retail lending market in CP26/7. The regulator wants designated credit reference agencies to receive consistent data from all lenders that already share information with at least one agency. This aims to remove blind spots that can block access to credit or lead to poor lending decisions. The consultation also proposes stricter rules on data accuracy, including marking satisfied county court judgments and improving processes for correcting errors. These reforms follow the FCA’s wider market study, which highlighted the need for better quality, fuller and more consistent credit information.
The FCA expects these changes to strengthen risk assessment, support fairer pricing and improve consumer outcomes. The consultation closes on 1 May 2026. Firms should review the proposals and consider how new mandatory reporting and data‑quality duties will affect their systems and governance.
Read more on the FCA proposed action to close gaps in borrowers’ credit files
Read the FCA introduction to CP26/7
Read CP26/7 Consultation Paper
UK Regulatory Handbook 2026
An essential guide to the regulatory landscape for financial services
