Some investment and SIPP providers have been retaining interest earned on cash-holdings to subsidise loss-making platforms, according to an FCA study published today.

In December 2022, the Financial Conduct Authority (FCA) released a Policy Statement entitled: “Improving Outcomes in Non-Workplace Pensions."

The FCA has written to investment platforms and selected SIPP providers to ask them to disclose how much of the interest they receive from cash and bank deposits they pass on to their customers.

Adviser platform Transact has criticised the approach some other platforms have taken towards cash handling and the use of cash interest.