meta_id 3001750

On March 25, 2026, the Financial Conduct Authority (FCA) launched a consultation on proposals to expand access to simplified forms of individualised financial advice for consumers in the United Kingdom. The FCA proposes to make targeted changes to its suitability framework to encourage firms to offer more streamlined advice options alongside comprehensive advisory services. The proposals aim to address barriers preventing firms from offering simplified advice, which currently remains underutilised despite being available. Key proposed changes include: simplifying and consolidating suitability rules into one common framework; clarifying existing flexibilities to allow advisers to consider "sufficient" rather than exhaustive information; rebalancing suitability communications to be more concise and proportionate; and introducing flexibility for firms to move from fixed annual suitability reviews to periodic reviews based on client needs. The FCA is also initiating discussion on modernising trail commission rules to prevent potential consumer harm. The proposals maintain existing consumer protections and do not alter adviser qualification standards or charging rules. Advice will continue to be provided through agreed-upon adviser charges rather than provider-paid commission. Simplified advice is intended for consumers with straightforward financial needs—such as investing a one-off lump sum—while comprehensive advice remains appropriate for complex situations, such as retirement income planning from multiple sources. These proposals complement the FCA's April 2026 targeted support rules, which permit firms to suggest products to consumer groups based on what would be recommended to those in similar circumstances. The consultation closes on May 22, 2026. Responses can be submitted via the FCA's consultation portal. The FCA plans to publish its response to feedback in due course.