KPMG UK has commented on the Financial Conduct Authority’s (FCA) final rules on targeted support. Sharing insights and perspective on the publication of the FCA’s final rules on targeted support, Jane Wilson, Targeted Support Lead, KPMG UK, says that this is considered to be “a pivotal moment for the industry and consumers.”
Jane Wilson of KPMG added that if done well, “targeted support can help the UK become a nation of investors, creating a healthier and wealthier society.”
They added:
“Recent KPMG research around the reduction in cash ISA limits found that 87% of UK consumers would put any excess money into savings rather than into a stocks and shares ISA, even though that means paying more tax. We need a mindset shift towards investing and providing consumers with proactive, targeted financial support could be the key.”
Wilson continued:
“Implementation will be technical for firms, the first step is to consider how targeted support can complement existing services. There will be many subsequent factors to consider, like customer segmentation and aligning with Consumer Duty. But this is a golden opportunity to make advice accessible and appropriate for a wider section of society. It’s now down to firms to work through the details and make it a success.”
KPMG UK also commented on recent GDP data.
Yael Selfin, Chief Economist at KPMG UK said that the United Kingdom’s economy “contracts again in October, as further headwinds loom.”
They further noted:
“Despite the Budget avoiding front loaded tax hikes and borrowing costs set to fall over the coming year, its effects are likely to linger and household sentiment may not improve in the near term. The impact of earlier price shocks combined with rising inflation expectations, has seen households become more cautious.”
Selfin also stated:
“The outlook for investment growth is more positive and is set to be driven by both private and public sector activity. Investment in data centres and energy infrastructure, particularly in renewables, could help foster growth over the coming year. While government infrastructure spending is set to ramp up. As a result, we expect investment to remain a key contributor to growth going into 2026.”
They concluded:
“UK GDP fell by 0.1% in October, driven by a fall in services and construction output. We expect growth to remain weak for the remainder of Q4, as activity in November is likely to have been constrained because of continued Budget uncertainty. Overall, we expect the GDP growth to be flat in the final quarter of this year.”