Targeted support is an FCA scheme that will be live from 6 April. Targeted support will be a new regulated activity, aiming to bridge the gap between individual, regulated advice and generic guidance.

Key Group’s referral arm said targeted support was a “fantastic opportunity” to close the advice gap.

Targeted support will be available to the defined contribution pensions and retail investment sectors, but not to the mortgage market or providers of defined benefit pensions.

Key Partnerships said the “once in a generation change” does not include later life lending options despite many older customers who could benefit and may have substantial property wealth and little in the way of savings and investments.

It is urging firms which offer targeted support propositions to signpost customers to specialist later life lending advisers.

Key Partnerships said that homeowners aged 55 and above own more than £3.7 trillion of mortgage-free property wealth, which the firm said should form part of later life financial planning and advice.

But consumer awareness of later life lending options remains poor, meaning that it is up to advisers to signpost to the relevant expert advisers.

Key Partnerships director Damon O’Connell said: “In order to ensure good outcomes for customers, the home has to be included in retirement planning conversations, but the scope of targeted support does not currently include later life lending options.

“Later-life lending products are increasingly relevant to all over-55s homeowners and can support needs such as more efficient management of existing debt, a boost to retirement income, home improvements to potentially make a property more suitable for later life living and eventually to perhaps help finance care provision in the home.”

Last week the FCA set out its first mortgage regulatory priorities document, which aims to be a “one-stop shop” for all the regulator’s aims for the market.