UK’s Biggest Financial Advice Overhaul in a Decade Set to Boost Savers’ Wealth

The UK is preparing for its biggest change to financial advice in over a decade. The Financial Conduct Authority (FCA) has introduced new rules aimed at making investment guidance easier and more affordable for millions of people.

Currently, personalized financial advice can be expensive and complicated, leaving many savers without support. The FCA’s new plan will allow companies such as Hargreaves Lansdown and Vanguard to offer “targeted support”  general advice to groups of people without needing to complete detailed assessments required for individual recommendations.

For example, firms could advise people holding large cash balances that investing some of their money in stocks or funds could lead to better returns over time. This change is expected to help millions who currently have savings but do not invest due to the high cost or complexity of advice.

The FCA estimates that around 7 million adults in the UK have more than £10,000 in cash savings with no investments, and up to 30 million people could benefit from this new type of support. Surveys show more than half of savers want more help managing their money.

Dan Olley, CEO of Hargreaves Lansdown, described the reforms as “truly transformational” for encouraging more people to invest. Barclays estimates that 13 million UK adults hold about £430 billion in cash that could be better used through investing.

Along with targeted support, the FCA plans to introduce “simplified advice,” which will allow companies to give product suggestions based on a quick review of a customer’s key financial information, without a full suitability check. This will take longer to implement but is expected to further expand affordable advice options.

Consumer groups welcome the changes but emphasize the importance of protecting customers from risks. Vanguard’s Jon Cleborne said the reforms will help more people access the benefits of long-term investing.

With many people over 40 admitting they have done little to prepare for retirement, experts see this as a key opportunity to improve financial planning across the UK.

The FCA expects around 100 companies to launch targeted support services by 2026, many potentially free of charge, helping millions make smarter financial decisions and grow their wealth more confidently.