Royal London has received regulatory approval to deliver targeted support, becoming one of the first firms authorised to offer the new form of regulated financial help.
The mutual said it had been involved in shaping the regime from the outset, through industry working groups, engagement with government and participation in the Financial Conduct Authority (FCA) policy sprint.
Chief executive of advice Ben Hampton said the firm had worked closely with the regulator to design a framework that balances innovation with consumer protection.
“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,” he said.
Hampton added that Royal London’s investment in technology and digital capability would enable it to deliver targeted support “in a way that is scalable, responsive and rooted in good customer outcomes”.
Tom Nelson: What advice firms need to get right about targeted support
The regime is intended to sit between guidance and full financial advice, offering what Hampton described as “a sliding scale of help”, allowing customers to access different levels of support depending on their needs.
Targeted support is designed to complement, rather than replace, individualised financial advice, and could act as a stepping stone for consumers who may later seek full advice.
Royal London estimates that 21.5 million people in the UK could benefit from the service, underlining the scale of unmet demand.
Further details on the firm’s targeted support proposition will be announced in due course.