Transact is calling for greater industry transparency and consistency in how cash interest is disclosed, with new research showing that most advised clients are unaware that platforms may retain part of the interest earned on cash holdings.
Under Financial Conduct Authority rules, platforms can only retain interest on cash where doing so is compatible with Consumer Duty obligations, including requirements around fair value and customer understanding.
However, research conducted by Research in Finance in April 2026, found most clients are unaware that platforms may retain part of the interest earned on cash holdings and clients struggle to find disclosures relating to retained cash interest.
Furthermore, many participants reacted negatively when informed that platforms could retain interest on cash, particularly those with larger cash balances.
Transact said the research painted a largely positive picture of adviser relationships, with clients reporting high levels of trust and engagement, and most demonstrating a solid understanding of their adviser, platform and investment charges.
Many participants were able to recall charge levels accurately and referred to regular reports to confirm details.
However, attitudes towards cash interest were consistently different. Across the research group which covered five of the largest platforms, cash holdings ranged from as little as 0.2% to as much as 7% of total assets.
When asked about cash interest and any amounts retained by platforms, most clients were unable to locate this information within their reports. Several said they had never actively looked for it and none recalled meaningful discussions about cash with their adviser, with most stating it had not been raised proactively.
When participants were shown examples of the level of cash interest which could be retained by platforms, the reaction was often one of surprise. In some cases, this developed into frustration and negative sentiment, particularly among those holding larger cash balances.
Several described the practice as unfair and said it prompted them to reconsider their platform arrangements. Those with more moderate reactions generally held very small cash positions.
The findings suggest that low levels of disclosure and visibility around cash interest can undermine otherwise strong adviser‑client relationships and retained cash interest remains a blind spot even among highly engaged advised clients who otherwise understand platform and adviser charges well.
For Transact, this is not an adviser issue but an industry-wide disclosure challenge.
Tom Dunbar, CEO of Transact, said: “Clients cannot make informed decisions about value if they do not understand how cash interest is being treated.
“Our research shows many advised clients are unaware platforms may retain part of the interest earned on cash balances, despite otherwise having strong relationships with advisers and a good understanding of charges.
“The FCA has made clear that disclosure alone is not enough under Consumer Duty. Information must be clear, prominent and meaningful to clients. We are committed to passing back all cash interest earned to clients in full. We may stand alone on this, but clients value transparency and fairness.”
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