SIPP operators have warned disclosing the interest they earn on investors' cash accounts is more complicated than FSA proposals suggest.
In an FSA paper released last week, the regulator asked if providers should disclose, using illustrations, the interest they retain from investors' cash accounts. SIPP providers have welcomed the paper's aim for transparency, but warn the issue of disclosing interest is a complicated ‘red herring' which is less important than investors having a choice over cash accounts. Richard Mattison, business development director at James Hay, says: "Disclosing that a provider earns interest on a bank account is fine. We already do that. "However, the amount of interest earned can fluctuate an...
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