CP24/27: Advice Guidance Boundary Review – proposed targeted support reforms for pensions

Read CP24/27 (PDF)[1]

Why we are consulting

This consultation paper sets out our high-level proposals for targeted support in pensions, as part of the Advice Guidance Boundary Review (AGBR). This follows the initial proposals we outlined jointly with the Government in DP23/5[2].

Targeted support would exist between current guidance-based services and more bespoke advice. It aims to help consumers, at scale, make effective, timely and properly informed decisions about their pensions. We say how we see this support working, and the conduct standards we are proposing to ensure better outcomes for consumers.

We’re not consulting on new rules at this point, but we are seeking initial feedback on our proposed direction.

Who this is for

This consultation is relevant to:

• consumers
• groups representing consumers’ interests
• life insurers
• all firms that provide pension products (both accumulation and decumulation)
• financial advisers
• investment platforms
• authorised fund managers
• retail banks
• trustees of Defined Contribution (DC) occupational pension schemes
• financial coaches
• trade bodies for regulated firms
• any non-authorised persons providing support to consumers

Next steps

Online response form[3]

Please respond to this consultation by 13 February 2025. You can respond using our online response form[3] or by emailing: [email protected].

We are not consulting on rules at this time. We are developing related targeted support proposals for wider investments. We plan to consult on detailed requirements with draft rules and guidance by the end of the first half of 2025 that will apply across retail investments and pensions.

We will also provide an update on our work on simplified advice and providing further clarity around the advice guidance boundary, which we also explored in DP23/5.

Background

In December 2023, DP23/5 opened discussion under the AGBR about how we could better ensure people have access to the right support to navigate complicated financial decisions.

In November 2024 we set out our next steps and that we would first focus on pensions[4].

To help support our policy development, we commissioned consumer research[5] to test targeted support with consumers.

We are publishing this consultation paper alongside our discussion paper on certain aspects of our pensions regulatory framework. Our discussion paper sets out how we may adapt our requirements given the changing market in recent years.