SIPP client interest skimming concerns 'overstated', providers argue

Pensions experts respond to concern around interest

Nicola Brittain
clock • 3 min read

Concern some self-invested personal pension (SIPP) providers rely on creaming interest from their clients' bank accounts is ‘overstated' and actually part of a well-established SIPP business model, providers have said.

Earlier this week, Finalytiq's Abraham Okusanya told delegates at the Retirement Planner Forum that SIPP providers are currently taking up to £50m a year in interest from their clients' cash accounts and may struggle to stay afloat without the income. Okusanya also said that the Financial Conduct Authority (FCA) was interested in preventing providers from harvesting the interest on cash accounts in the first place. The move might be the inevitable next step for the regulator following its push for increased disclosure and transparency in November last year, he told delegates on 14 Jun...

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 Pensions

Preparing for 2029: Adapting to the Budget's salary sacrifice cap

Preparing for 2029: Adapting to the Budget's salary sacrifice cap

'While this policy alters the landscape, it arguably represents an adjustment rather than a fundamental reform'

Steve Charlton
clock 22 December 2025 • 3 min read
Utmost to sell life and pensions business to JAB Insurance

Utmost to sell life and pensions business to JAB Insurance

To focus on wealth solutions business

Jen Frost
clock 22 December 2025 • 2 min read
Editor's view: How disjointed is the government's salary sacrifice change?

Editor's view: How disjointed is the government's salary sacrifice change?

The editor's Friday Night Takeaway from 19 December

Jen Frost
clock 19 December 2025 • 3 min read