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...
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