SIPP provider 'interest skimming' must stop, say advisers

Up to 12% of SIPP assets held in cash accounts

Tom Ellis
clock • 2 min read

The number of advisers who want a ban on interest skimming from self-invested personal pension (SIPP) assets held in cash accounts by providers almost doubled between January and June, according to Momentum Pensions research.

Dubbed as the SIPP industry's 'dirty little secret', interest skimming involves SIPP operators taking interest off the top of clients' assets held in bank accounts without stating it outright as a product charge. Of 106 financial advisers specialising in retirement planning surveyed in June, 23% wanted to ban SIPP interest skimming compared to 13% of 101 advisers asked in January. Two-thirds (66%) said they thought interest taken from cash accounts should be disclosed in line with Financial Conduct Authority (FCA) guidance so consumers can make accurate comparisons of costs between pe...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FSCS places Lancashire firm Frodsham Financial Planning in default

FSCS places Lancashire firm Frodsham Financial Planning in default

Advice practice formerly traded as Tom Carroll Associates FP

Hope Coumbe
clock 13 February 2024 • 1 min read
Schroders CEO: 'Private is a much easier place to exist than public'

Schroders CEO: 'Private is a much easier place to exist than public'

Peter Harrison says he is 'not quite sure we can solve the problem'

Cristian Angeloni
clock 02 February 2024 • 3 min read
FCA: Blackmore Bond promotions had 'very relevant risk warnings'

FCA: Blackmore Bond promotions had 'very relevant risk warnings'

No enforcement action for firms who approved financial promotions

Hope Coumbe
clock 07 December 2023 • 3 min read