FCA raises alarm on platforms' handling of customer interest

Regulator cracks down on investment platforms for ‘double dipping’

Sahar Nazir
clock • 1 min read

The Financial Conduct Authority (FCA) has today (12 December) written to investment platforms and self-invested personal pensions (SIPP) operators setting out its concerns on the way firms deal with any interest earned on customers’ cash balances.

The regulator said the amount of interest earned by some firms has increased as rates have risen. It surveyed 42 firms in July 2023 and found the majority retain some of the interest earned on these cash balances, which "may not reasonably reflect the cost to firms of managing the cash". Many also charge a fee to customers for the cash they hold, known as "double dipping". This has raised concerns with the regulator and firms have been told to cease this. The FCA said it is concerned these practices "may not be providing fair value to customers and may not be understood by consumer...

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 Your profession

Advisers urged to remain 'alert' as LPA financial misconduct complaints rise

Advisers urged to remain 'alert' as LPA financial misconduct complaints rise

Alleged LPA financial misconduct complaints rose to almost 12,000

Sophia Panayi
clock 12 October 2026 • 3 min read
News editor's view: Taxing questions for advisers

News editor's view: Taxing questions for advisers

The news editor's Friday Night Takeaway from 9 October

Isabel Baxter
clock 09 October 2026 • 2 min read
Why the new chancellor must rebalance growth and consumer protection

Why the new chancellor must rebalance growth and consumer protection

'Healy should re-empower the FCA to unleash the full potential of Consumer Duty'

James Daley
clock 09 October 2026 • 3 min read