Shapr3d app price5/24/2023 ![]() Following John's suggestion of matching what an investor could get in the open market, a SIPP provider actively managing their cash should have no trouble providing this level of return to their client and retaining a healthy margin for themselves.Īnother solution offered by some SIPP providers is to offer fixed term or notice deposits as an investment choice. If we look at the latest figures from the BoE, the average interest rate received by individuals on Sight Deposits was 0.89% in January. SIPP providers deserve to be compensated for this service, if it means customer outcomes are maximised. ![]() And opening client money bank accounts is one of the most onerous, bespoke, and time consuming things one can do with a bank. But in order to align incentives to clients, it would make sense for the SIPP provider to retain a share of the interest to encourage them to actively manage these cash balances and find the best risk appropriate return.Īctively managing cash is a time-consuming endeavour which requires monitoring counterparty credit worthiness and market interest rates, and managing liquidity. It's clear that a policy of retaining 100% of the interest is going to be tough to justify under Consumer Duty. Insightful article by John Moret about SIPP providers and their policies on retaining interest on client cash.
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