Mutual provider Royal London has become one of the first retail finance firms to offer Targeted Support to consumers, a day after Targeted Support was allowed by the FCA.
Royal London says that it has received regulatory approval to offer Targeted Support and its modelling suggests that 21.5m people in the UK could need Targeted Support.
The FCA has introduced targeted to support to help millions more receive limited financial guidance and ‘nudges’ to make the most of their finances and avoid leaving savings and pensions neglected.
It will be offered to groups with ‘common characteristics’ to encourage more consumers to invest and plan their finances.
Royal London says it has been involved from the outset in developing Targeted Support via the industry working group, government engagement and the Financial Conduct Authority’s ‘policy sprint.’
It says it has played, “a leading role shaping and delivering Targeted Support” and is now one of the first businesses to receive regulatory permission to launch.
The company has not provided details of its Targeted Support offering yet but will likely integrate it initially within product communication with customers, offering more guidance to those who need it. Royal London says it will share further details on the scope of its Targeted Support offering in due course.
Ben Hampton, CEO of advice at Royal London, said: “From the start, we’ve worked closely with the FCA to help design a framework that allows innovation to flourish while maintaining strong consumer protections, empowering millions of people to take better financial decisions.
“Our investment in technology and digital capability means we will deliver Targeted Support in a way that is scalable, responsive and rooted in good customer outcomes. The regime creates a sliding scale of help, allowing people to access different levels of support depending on their needs, and at moments that really matter.”
Royal London has stressed that Targeted Support is designed to, “complement, not replace, fully individualised financial advice.”
It sees Targeted Support as a bridge for many people to help them make better decisions, while building confidence and engagement that may lead to individual advice in the future.
Its research showing that 21.5m people could benefit from Targeted Support suggests a large, unmet need for financial guidance, according to the company.
Written notice to Royal London to go ahead with its Targeted Support offering was received on Thursday 2 April from the Prudential Regulation Authority and the application has been approved with the consent of the FCA.
Royal London is one of the largest mutual life, pensions and investment company in the UK with assets under management of £199 billion, 8.5 million policies in force and over 5,000 employees.