Most IFAs not concerned about platform cash options – survey
Many IFAs unaware what clients earn in cash accounts, most not calling for more competitive options
A third of advisers would put more cash on platforms if a bigger range of options was offered, but more than three quarters do not see more competitive choice as necessary.
Findings from a survey of 100 IFAs by Investec Specialist Bank show that only 22% of advisers would like to see more competitive options for cash on wrap platforms, despite typically low returns on these cash products.
Just 16% of advisers say that a wider range of cash options on platforms would be ideal, even though a large number of platforms only offer access to a basic deposit account.
The upcoming Money Management survey on platforms shows that of the 19 companies surveyed, just seven allow access to other cash accounts and only two offer this with no additional charge.
The Investec research also touches on the low returns being seen at the moment, with more than a third of advisers saying the average interest on cash on platforms is below 1%.
However, an alarming 45% of IFAs questioned have no idea what the rate is on their clients’ platform cash accounts, surprising at a time when cash is being used more and more as a safe haven.
The Money Management figures show that returns on cash remain low, with 16 of the 18 platforms that provided data offering less than the current Bank of England base rate of 0.5%.
Standard Life’s best rate of 1.65% is only available to those with more than £100,000 in the deposit account, while Nucleus’ rate of 1% and Transact’s of 1.03% are available on all deposit sums.
See the full details of the Money Management platform survey in the August issue