HM Treasury has amended the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 to create a new specified activity, “providing targeted support”, by inserting Article 55A. The Order was made on 28 January 2026, laid before Parliament on 30 January 2026, and takes effect in two stages.
From 23 February 2026, the Order enables the Financial Conduct Authority (FCA) to make or approve rules, give guidance and directions, and accept and determine applications for Part 4A permissions and Part 5 approvals related to targeted support. The Prudential Regulation Authority may exercise its powers where relevant, and the Financial Services Compensation Scheme’s scheme operator may make rules and give guidance. For all other purposes the Order commences on 6 April 2026 across the United Kingdom. The FCA has indicated it expects its rules to take effect on 6 April 2026. (fca.org.uk)
Article 55A defines targeted support as a group‑based recommendation. A firm uses information about an individual to place that person in a group of individuals who share similar characteristics or circumstances and then provides a recommendation presented as suitable for the individual on the basis of their inclusion in that group. The recommendation may cover buying, selling, subscribing for, exchanging, redeeming, holding or underwriting a particular security, structured deposit or other relevant investment, or exercising rights attached to such investments.
The disclosure duty is precise. When making the recommendation, the firm must state that it is not based on a comprehensive consideration of the individual’s characteristics or circumstances and is not specific to that person, and it must set out the relevant characteristics or circumstances of the group used to form the recommendation. The statement must be delivered at the same time as the recommendation.
The boundary with regulated advice is clarified. Where Article 55A applies, a firm is not regarded as advising on investments for the purposes of Article 53 of the Regulated Activities Order. Article 55 is amended so that Article 53 is expressly subject to Article 55A(2), underscoring the separation between targeted support and personal recommendations regulated as investment advice.
Authorisation is still required. Because “providing targeted support” is a specified activity, firms will need a Part 4A permission unless an exemption applies. The Order enables applications and determinations from 23 February 2026. The FCA has signalled it is on track to open the gateway for applications in March 2026 and is offering a pre‑application support service to help firms prepare. (fca.org.uk)
The Order makes consequential amendments so that targeted support is treated consistently across existing exclusions in the Regulated Activities Order. Provisions covering suppliers, groups and joint enterprises, and the sale of a body corporate are updated so that, where those contexts exclude “advising on investments”, they now also exclude the provision of targeted support. Equivalent changes are made for overseas persons, local authorities, providers of relevant goods or services, managers of UK UCITS and AIFs, insolvency practitioners, insurance‑intermediated claims management activity and insurance distribution definitions.
Beyond the Regulated Activities Order, amendments align other instruments. The Financial Services and Markets Act 2000 (Exemption) Order 2001 is updated so that sector‑specific exemptions encompass targeted support. The Companies Act 2006 minor definitions now reference Article 55A. Schedule 6 to the Terrorism Act 2000 adds targeted support to the list of activities for which financial information may be obtained, and the Child Support Information Regulations in Great Britain and Northern Ireland incorporate targeted support into relevant definitions.
The pensions transfer framework is adjusted. The Occupational and Personal Pension Schemes (Conditions for Transfers) Regulations 2021 in Great Britain and Northern Ireland now include the Article 55A activity within the definition of a “regulated activity”, ensuring targeted support is recognised within transfer conditions.
The FCA’s published material describes the intended market application: firms can present “ready‑made suggestions” to cohorts with shared needs, such as customers with surplus cash and a multi‑year horizon, while making clear that the service is not a personal recommendation. This approach mirrors the group‑based construct set out in Article 55A. (fca.org.uk)
For compliance and product teams, immediate priorities include preparing a variation or grant of permission, ensuring customer segmentation aligns with the statutory definition of a “group”, and designing clear, prominent consumer statements that are delivered at the moment of recommendation. The FCA’s programme indicates the regime will apply from 6 April 2026, giving a short window to finalise governance and controls. (fca.org.uk)
HM Treasury’s explanatory note states that no impact assessment has been published because no, or no significant, impact is foreseen. Government communications also indicate that the delivery of targeted support marks the conclusion of its role in the Advice Guidance Boundary Review, with the FCA leading implementation and supervision once the legislation is in force. (gov.uk)