How platforms retain interest payments gained from client bank accounts has come under fire, yet many SIPP providers do the same practice. Fiona Murphy asks how this affects the SIPP market.
Recently battle lines were drawn in the wrap market on whether it is right for providers to keep any interest earned on clients’ bank accounts. The issue sparked two debates. The first is around issues of disclosure and whether providers are notifying customers and their advisers. Any deviation from this could be seen as contrary to the spirit of the Retail Distribution Review in maintaining transparency with consumers. The second argument is whether it is right for providers to keep any interest retained in the first place, although many providers do return a proportion of interest e...
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