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...
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