Financial education will be important to create the right investment culture and teach people about taking a long-term approach, the FCA has said.
The Financial Conduct Authority has published its latest Regulatory Priority report which replaces the portfolio letters it used to issue.
Speaking at the TISA Inclusive Investing Conference 2026, Lucy Castledine, director, consumer investments at the FCA, said the report, published today (March 4), gives firms in the consumer investment market a clear, succinct one-stop-shop.
“This marks a major refresh of how we communicate with firms — and an important part of our work to be a smarter regulator — predictable, purposeful and proportionate,” she said.
“Our report will be relevant to financial advisers, wealth managers, Sipp operators, investment platforms, crowdfunding platforms, peer-to-peer lenders and contracts for different providers.
“The report should act as a guide for firms’ boards and chief executives. You should read these reports carefully — and act where you need to.”
Within the report, Castledine said there are four clear priorities for consumer investments:
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Building a stronger investment culture
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Strengthening trust
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Securing good customer outcomes
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Strengthening financial crime controls
“We are committed to building a stronger investment culture — a culture where consumers feel confident to invest.
“That means ensuring people have the right support, guidance, and information to make decisions that align with their needs and risk tolerance.
“We want firms to communicate clearly, avoid jargon, and provide balanced, transparent information about costs, benefits, and risks.”
Castledine said the FCA aims to empower investors to manage their savings for their long-term financial health.
“This will mean some consumers take more investment risk and may mean investment losses, sometimes without compensation,” she said.
“Taking a long-term approach, being prepared for downs as well as ups, and financial education will be crucial in creating the right investment culture.
“We are also committed to strengthening trust. Trust is the bedrock of any successful market, and key to supporting and increasing consumer engagement with investing.
“Firms must have strong controls, governance and compliance procedures to build trust, manage risks, protect consumers and enable sustainable innovation, particularly when working with new technologies.”
In the next 12 months, the City watchdog also wants to strengthen financial crime controls.
“Financial crime continues to undermine confidence and divert resources away from investment,” Castledine said.
“We expect firms to maintain effective controls to prevent fraud, money laundering, and market abuse.
“This includes stronger surveillance, enhanced reporting, and effective due diligence — not just for themselves but for their appointed representatives. This will be a focus for us over the next year.”
The FCA is partnering with Ofcom and global bodies to tackle online scams and will use its enforcement powers to stop and punish criminal activity, including by so-called ‘finfluencers’ promoting scams.
“Social media is a major source of financial information for many, but we know the devastating impact that illegal influencers can have,” Castledine said.
Targeted support
The FCA is now in the final phase before the targeted support regime goes live in April 2026.
Castledine said firms that are serious about offering targeted support should engage with the regulator at the earliest opportunity to discuss their plans.
“To provide further support to firms, we will soon publish additional information to help firms confidently comply with the new rules when defining consumer segments,” she said.
The authorisations gateway opened on March 2, 2026, meaning firms can now apply for permission to offer targeted support to their customers.
In the lead up to opening the gateway, the FCA opened its pre‑application support service (PASS) to targeted support.
Castledine said: “PASS conversations increase the likelihood of firms providing strong and complete applications; allows firms to discuss their proposals and receive feedback; and reduces the risk of delays or poor quality submissions when the formal application process begins.
“We have been really encouraged by the depth and constructiveness of our engagements with firms, as they set about preparing for launch.”
Although the gateway is now open, firms can still access PASS.
Castledine said: “Work is also progressing with the Money and Pensions Service (MaPS) to develop a consumer-facing webpage.
“This will mean the public can clearly understand what targeted support is — and what it is not — from the outset, and compare it to other forms of support or advice.
“The launch of targeted support is a huge undertaking that should transform the industry.
“I look forward with excitement to the first firms being authorised and the targeted support regime going live on April 6, 2026.”
sonia.rach@ft.com
