Regulation

FCA cracks down on ‘double dipping’ in customer cash by investment platforms

Regulator writes to investment platforms about interest on customer cash as rates rise

The Bank of England has repeatedly hiked interest rates over the past two years
The Bank of England has repeatedly hiked interest rates over the past two years Photo: In Pictures via Getty Images

The Financial Conduct Authority has written to investment platforms over concerns about how they treat interest earned on customers’ cash balances.

Against the background of rising interest rates, the FCA said it surveyed 42 investment platforms and self-invested personal pension operators and found that the majority retained some of the interest earned on customer cash balances.

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