The FCA’s targeted support framework is gaining momentum, with Zopa becoming the first UK bank to secure permissions under a regime designed to close the advice gap
Zopa has become the first UK bank to secure Financial Conduct Authority (FCA) targeted support permissions, marking an early milestone for a regulatory framework designed to close the advice gap between generic guidance and full financial advice.
From 6 April, authorised banks, pension providers and other financial firms approved for targeted support have been able to offer tailored recommendations to groups of consumers with common characteristics, particularly in relation to pensions and investments. Royal London, Quilter and Vanguard are among the firms to have already secured permissions since the scheme went live.
Now the retail banking sector has its first entrant, with Zopa the first bank among more than 350 UK banks and building societies to secure the permissions.
What targeted support actually means
The FCA’s targeted support permissions are designed to sit between generic guidance and full financial advice, giving consumers insight into the behaviours and decisions of customers with similar profiles using comparable financial products.
Firms are not required to conduct a comprehensive assessment of an individual’s circumstances – as full advice demands – but must still design suitable products and comply with the Consumer Duty.
The government confirmed targeted support would be a new specified activity, meaning only firms that hold the specific FCA permission are authorised to offer it — a structural choice intended to maintain accountability and build consumer trust in the emerging market.
The FCA has published a joint statement with the Financial Ombudsman clarifying how it will approach consumer complaints about targeted support, and a further joint statement with the ICO on how firms should communicate with consumers within existing direct marketing rules – both areas where industry had sought clarity before committing to rollout.
Zopa as a test case
For firms watching the regime develop, Zopa’s approval offers an early blueprint for what implementation can look like in a retail banking context.
The digital bank plans to combine user data and behavioural insights to deliver tailored nudges and suggestions to investment customers, built around what it describes as an education-first approach – targeting the estimated 15 million Britons currently holding excess cash in low-yield accounts.
Merve Ferrero, Chief Strategy Officer at Zopa Bank, said: “Our new permissions allow us to take that mission even further – delivering more tailored support and an intuitive investing experience that fits naturally into customers’ everyday financial lives.”
Kate Dwyer, Head of UK and Northern Europe Distribution at Invesco, which manages Zopa’s ready-made investment funds, added: “Targeted support permissions have the potential to make a real difference in helping people engage with investing earlier and with greater confidence.”
What comes next?
The FCA’s authorisation gateway only opened in March 2026, meaning the current cohort of approved firms represents the beginning of what regulators expect to be a much wider rollout.
The FCA has said it wants firms to have confidence to deliver targeted support and consumers to trust it – framing the regime as a significant structural adjustment rather than a minor regulatory addition.
