Fellow Financial Advisers, we want your expert insights!&nbsp;Are Investment Platforms (Wraps) truly delivering Fair Value to their clients under the new Consumer Duty requirements if they offer meagre interest rates on cash holdings?&nbsp;Aviva and Transact seem to lead the charge, passing on all interest to consumers, both offering an impressive 4.2%! In contrast, Standard Life appears to offer no interest at all.&nbsp;Many providers sit in the middle, paying decent rates but still pocketing 10% of that interest.We need your experiences!&nbsp;Are Wrap providers providing their clients with fair value?What are the best and worst examples you've encountered?Should the FCA step in to address this issue?&nbsp;Comment below with your thoughts, and let's spark a discussion on ensuring fair treatment for all investors.

financial services

Cash Holdings on Investment Platforms: Will Consumer Duty Drive Fair Play?

Platforms offer great convenience and flexibility for clients. However, the failure of some platforms to pass on the full interest on cash holdings to their clients is a hidden cost of using those platforms that clients must be aware of. While retaining 10% on cash interest seems fairly common practice, at today's rates of c4.0%, it is an additional cost of c0.40% on your cash holdings. The two main platforms we use are Transact and Aviva, so it's good to see that they treat their customers fairly regarding their cash holdings.

Scott Gallacher

Scott Gallacher is a Chartered Financial Planner, Independent Financial Adviser and Director of Rowley Turton, a Chartered independent financial planning firm based in Leicester. He has worked in financial planning for nearly 30 years and regularly comments in the national media on retirement, pensions, inheritance, investing, tax and later-life planning. Scott is the author of 50 Today 100 Tomorrow: Planning Your Money and Life for the Next 50 Years and founder of 100 Tomorrow, where he writes about retirement, longevity, financial planning and making the most of the years ahead. He is APFS qualified and holds specialist qualifications in pensions, taxation, trusts, investments, long-term care, equity release and divorce. Scott has a particular interest in the human side of financial planning, including when people have enough, when they can afford to retire, how much they can safely spend and how they can help the next generation without compromising their own financial independence.

Cash Holdings on Investment Platforms: Will Consumer Duty Drive Fair Play?

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Scott Gallacher

Director at Rowley Turton

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