London, May 2, 2026, 21:07 BST
Legal & General Group Plc can now offer “targeted support” after getting the green light from the Financial Conduct Authority, clearing the way for the UK financial services group to issue more tailored messages to members of defined contribution workplace pensions. The first wave will focus on savers holding all their retirement savings in cash. Legal General Group
The timing is important here: the FCA’s targeted support regime kicked in on April 6, creating a middle layer between one-size-fits-all guidance and comprehensive financial advice. Under this approach, firms are allowed to offer ready-made suggestions to groups of customers who share similar characteristics, stopping short of giving a bespoke recommendation to each individual. According to the regulator, around 23 million consumers aren’t getting what they need from existing advice and guidance options.
L&G flagged that long-term cash holdings risk stunting growth and eroding real value in periods of higher inflation. In its trial, the company reported 85% of people wanted to access its targeted-support materials. Out of those, 95% said the information was easy to understand, and 93% came away clear about their next steps.
Laura Mason, retail chief executive at L&G, described the approval as an “important milestone,” saying it enables the firm to go further than “simply presenting options” to members. Paula Llewellyn, who heads defined contribution and workplace savings, pointed out that support “at the right moment” can make pension decisions “much easier to act” on. Corporate Adviser
L&G is jumping in early as UK savings firms rush to adopt the new rules. Quilter and Royal London already have approval for the service. Barclays says it’s planning a launch, while Scottish Widows has been testing AI-powered support in its app.
L&G’s nod lines up with the retail savings drive flagged in its 2025 results. Workplace defined contribution assets under administration hit £114 billion, a 21% increase. Net flows reached £6.2 billion, with an additional £3.7 billion in assets set to come onboard in 2026. Worth noting: assets under administration represent the customer funds L&G services, not its own holdings.
Capital returns have been in focus. L&G picked up 14.5 million shares for cancellation across April 29 and April 30, according to a regulatory filing posted Friday. That move trims its outstanding shares and voting rights to roughly 5.62 billion once settled.
As of 18:06 on May 1, L&G’s shares stood at 254.89 pence, according to the company’s website—just before London trading paused for the weekend. Investors continue to weigh whether L&G’s heft in pensions, annuities, and asset management will translate into more consistent fee growth.
Still, this new service doesn’t amount to personal financial advice. Its tips come from patterns in data on customers with similar profiles. Consumer advocates caution: just because your bank or provider pitches a product, don’t assume it’s right for you. Investments carry the risk of losses; cash can see its value erode if inflation picks up.
One more variable: the FCA’s consultation on a broader shakeup of pensions and investment advice rules runs through May 22, with the regulator aiming to publish a policy statement before year-end. For now, firms are developing targeted-support products—though the overall advice rulebook is still in flux.
