The Information Commissioner's Office ("ICO") and the Financial Conduct Authority ("FCA") have issued a joint statement clarifying how firms can communicate targeted support messaging to consumers while complying with existing direct marketing rules under UK data protection law. The regulators' aim is to help consumers make better financial decisions and encourage firms to innovate, while respecting consumers' privacy and marketing choices.
What is "targeted support"?
The FCA's Policy Statement 25/22 sets out near-final rules for a new form of assistance to consumers called "targeted support". This allows authorised firms to provide "ready-made suggestions", in relation to pensions and retail investments, to groups of consumers that share common characteristics. Targeted support has been designed to address the advice gap that exists between generic guidance and personalised advice (which many consumers struggle to afford). Subject to legislation, from March 2026 firms should be able to start applying for permission to provide targeted support. The new rules are expected to come into force from 6 April 2026.
The existing rules on direct marketing
Direct marketing is defined as “the communication (by whatever means) of advertising or marketing material which is directed to particular individuals”. Engaging consumers around firms' targeted support offerings may fall within direct marketing and be subject to the relevant rules and restrictions. Feedback from firms identified that existing direct marketing rules could pose a considerable obstacle to their ability to effectively offer targeted support.
Targeted support is predicated on consumers being grouped according to common characteristics. As such, personal information will need to be processed by firms to make this segmentation prior to any tailored messaging. Such data processing and any tailored messaging must comply with the UK General Data Protection Regulation ("UK GDPR"), the Data Protection Act 2018 ("DPA") and the Privacy and Electronic Communications Regulations 2003 ("PECR"). In particular:
- Data protection principles must be adhered to, such as transparency and fairness
- A lawful basis is required for any data processing – likely consent or legitimate interests. A relevant additional condition must also be identified where special category data is involved
- Individuals' information rights must be respected; including the right to be informed, rights in relation to automated decision making, and the right to object to direct marketing
- Firms are restricted from sending direct electronic mail marketing such as emails, texts, DMs etc., unless:
- The consumer has explicitly consented, or
- The soft opt-in applies. i.e. an opt-out is offered at the point of data collection and in every message sent (but note that this soft opt-in can only be used for similar products / services sent by the same organisation)
Promotional communications that are not direct marketing
Where a message is not direct marketing, it can be communicated to all consumers regardless of whether they have opted-out, not consented, or not been provided with a soft opt-in opportunity. The joint statement sets out practical ways that firms can actively promote their targeted support offering in a way that is not direct marketing and consequently not subject to the associated rules and restrictions:
- Adding the same banner or message on targeted support to the firm's website or app for all users to see
- Playing the same recorded message about targeted support, or having call handlers read out the same script on the offering, during all inbound calls to the firm
- Posting messages to all followers / users about targeted support on the firm's social media accounts
Provided these types of communication are broadcast to all of a firm's customers, rather than tailored to particular individuals, they can contain promotional and marketing material without being subject to the direct marketing rules. That being said, avoiding direct marketing inherently limits the extent to which a firm can promote targeted support.
Promotional communications that are direct marketing
Where firms choose to promote their targeted support offerings through direct marketing, consumers must be given clear, unbundled consent options. Communications sent directly to the consumer must only relate to the firm's targeted support (as the customer has consented to their data being processed only for these purposes).
The joint statement notes that firms may include minor, incidental reminders about direct marketing and targeted support preferences in communications that are sent for other reasons (for example, annual statements), provided no marketing content is added.
Where consumers have given their permission to receive direct marketing, firms must ensure that: (i) there is an appropriate lawful basis; (ii) they are transparent about the processing taking place; and (iii) they give customers the opportunity to opt-out (this is particularly important given that targeted support is a new processing activity).
Customers who have not given their permission to receive direct marketing can be made aware of a firm's permission to offer targeted support. This generally does not constitute direct marketing, provided that the communication is factual and neutral, and avoids encouraging specific actions from consumers. The joint statement gives the following examples of what information could be included in such a message:
- What targeted support is (for example, by reference to the MoneyHelper website)
- The firm's authorisation to provide the targeted support service
- Where consumers can go to find out more information on how to receive targeted support
- How consumers' personal information will be used in line with data protection laws if they receive targeted support
- The fact that other firms may provide targeted support
Regardless of marketing permissions, firms are required to send essential messages about consumers' finances, such as:
- Under-saving for retirement
- Pension access decisions
- Unsustainable pension drawdowns
- Investment or savings performance
- Where customers can access support
Next steps
The ICO and FCA will consider engaging further with firms in early 2026 to support the implementation of the targeted support rules and address any questions firms may have. The opportunity that targeted support presents is significant. Firms that design effective – but compliant – consumer engagement around their offerings will be best positioned to take advantage of this new regulatory framework.
