FCA Approves New Investment Support Amid Rising Demand for Sustainability Insight
People who might otherwise turn to friends, family or social media influencers for financial advice are set to receive new help with investing their money.
From April, the City regulator will allow banks and financial firms to offer “targeted support” — guidance based on what similar groups of people might reasonably consider doing with their investments or pensions.
The FCA says the aim is to improve the quality of help available to ordinary consumers, many of whom currently rely on unregulated online commentary or informal advice when navigating increasingly complex financial products.
A Significant Shift in How Consumers Will Be Guided
Under the new rules, firms will be able to provide clearer investment and pension explanations without crossing the boundary into personalised financial advice.
This is designed to help customers:
Understand products more easily
Grasp risk and long-term behaviour
Make better choices without pressure or technical jargon
The FCA’s move also reflects growing concern about the influence of social media “finfluencers”, where unregulated investment tips can spread rapidly — and sometimes dangerously.
Why Sustainability Signals Are Becoming Part of the Picture
Alongside clearer financial explanations, many consumers now want better visibility of how the companies behind their investment products behave on issues such as environmental impact, governance and workforce practices.
These sustainability indicators don’t amount to investment advice. Instead, they offer contextual information that helps customers better understand the kinds of businesses they are investing in — something the FCA has indicated is increasingly important for decision-making.
A More Informed Investor Base
With investment products becoming easier to access, the regulator wants to ensure consumers are equally well-supported in understanding them.
That means clearer presentation, fewer assumptions about financial literacy, and more accessible insights into how companies behave over time.
Sustainability signals, when delivered simply, are well-positioned to contribute to this clarity.
Pressure and Opportunity
The FCA’s update will require banks, fintechs and investment platforms to rethink how they communicate with customers. But firms that adapt quickly could gain:
Greater customer trust
Reduced risk of poor outcomes and complaints
A more confident retail investor base
Competitive differentiation through transparency
In a market where millions now invest on their phones, ease of understanding becomes as crucial as the product itself.
What’s Next
As targeted support begins rolling out from April, the financial sector will need to strike a careful balance; provide clearer, more meaningful guidance, while staying firmly within non-advised regulatory boundaries.
Tools that help customers understand company behaviour, including sustainability, are likely to play a growing role.
Ultimately, the FCA’s move reflects a simple truth; If investing is becoming more accessible, the information supporting it must become more accessible too.
