The FCA has a “once-in-a-generation opportunity” to reshape the advice landscape and improve how people engage with their financial decisions, according to director of consumer investments Lucy Castledine.

Speaking at the Personal Investment Management & Financial Advice Association (PIMFA) Compliance Conference 2025, she also said that “we are not afraid to say we are a champion of the growth agenda.” Her remarks follow comments focusing on growth made by major government figures over recent months and at the governing Labour Party’s conference this week.

Castledine said the FCA would be seen more at key industry events going forward and laid out a four-point, five year strategy:

• Support growth by enabling investment, innovation and ensuring the continued competitiveness of the UK’s financial services sector. This means adopting regulation that doesn’t just apply a “one-size-fits-all” approach.
• Be a smarter regulator by becoming more predictable, purposeful and proportionate. Improve processes and embrace technology to become more efficient and effective. This would mean helping firms with tools such as sandboxes and an AI Lab, and making supervision more data-led and proactive.
• Help consumers navigate their financial lives by working with industry to boost trust, product innovation and ensuring the right information and support is available. Using the Consumer Duty to press on in high-risk areas and demand that firms prove they’re delivering real value and support.
• Fight crime focusing on those who seek to use the fact they’re regulated to do harm. Castledine promised the FCA would go further to disrupt criminals and support firms to be an effective line of defence. This approach encompasses taking action against finfluencers and stopping the unlawful promotion of financial services.

She said the Consumer Duty has led to positive outcomes after just two years. Complaints upheld for unsuitable advice or mis-sold products have fallen from 39% in 2022 to 26% in 2024. But there are concerns about whether the it is too restrictive for wholesale firms.

Targeted support

Echoing the statements laid out in its new rulebook on investments and pensions, Castledine said: “Our proposals for targeted support for those with choices to make about their pensions and investments are a key part in expanding the supply of support to the consumers who need it – and narrowing that stubborn national advice gap between those who can afford bespoke personalized advice and those who rely on the support that is currently available for free.”

The word growth has been on many people’s lips, not least Prime Minister Keir Starmer, who called it the “antidote to division”. Encouraging more people to invest rather than save their money is seen as a key element in this approach.

There are about seven million adults in the UK with £10,000 ($13,482) or more in cash savings who may be missing out on the benefits of investing throughout their lives, and nearly 15 million people are not saving enough for their retirement.  

Recent FCA findings show that just 9% of consumers, or 4.6 million people, take financial advice.

The FCA says it will work with the Financial Ombudsman Service (FOS) to assess complaints in line with the tailored conduct regime for targeted support. The FOS can seek the FCA’s view on interpreting rules and assessing potential redress, ensuring a consistent, predictable approach to complaints handling.

Call to action

The FCA asks of firms;

• On growth and smarter regulation, continue to provide input into FCA proposals, on targeted support, simplified advice, data decommissioning and other changes, to help shape direction. “These changes will define the future for decades to come,” said Castledine.
• On helping consumers, “continue to challenge yourselves on the Consumer Duty and how best to make sure there are good outcomes for clients. Be innovative and flexible to meet the needs of consumers.”
• On financial crime, “let us know where you see illegal content online, and if you are having challenges reporting this content to tech platforms.”