Cash-reliant providers will 'struggle to survive'
Self-invested personal pension providers who were generating up to 40 per cent of their income from clients’ cash accounts could be on the brink of going bust, warned Richard Mattison, business development director of The IPS Partnership.
Mary Stewart, marketing director of Hornbuckle Mitchell, said: “I know a lot of Sipp providers are offering no interest and we are keen to keep some.
“Because of the loss of revenues from the interest rates on current accounts it could result in providers increasing their fees – which could either be in a transparent way or in a smoke and mirrors way. Some providers are still figuring out what they are going to do.”
