Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the Privacy and Electronic Communications Regulations 2003 on the effectiveness of Targeted Support.

Targeted support will be a new form of support, designed to bridge the gap between guidance and full financial advice. It will enable firms authorised by the Financial Conduct Authority (FCA) to proactively suggest appropriate products or courses of action using limited information about a customer and their circumstances. The regime will go live from April 2026.

In December, the FCA and Information Commissioner’s Office published a joint statement to provide clarity on the interaction between direct marketing rules and targeted support. This statement sets out how firms can inform customers of the availability of their targeted support services, including to those who have opted out of direct marketing, while complying with the relevant regulations.

In addition, feedback from industry highlighted that the way direct marketing rules apply in the workplace pensions context creates particular challenges for implementing the new regime. The government therefore committed in December to taking forward secondary legislation to address this, enabling workplace pension providers to deliver targeted support to members who have not opted out of direct marketing. This reflects that workplace pension providers have fewer opportunities to obtain consent for direct marketing, limiting the level of engagement that they can have with their members.