Consumer Duty and Cash Interest

As highlighted, cash skimming is not a great consumer outcome and platforms must determine how this fits with the consumer duty rules and outcomes. This is even more topical as the interest rates payable on platform cash balances are on the increase. At Transact we are currently earning the equivalent of ~4.01% gross p.a.* for (instant access) pooled cash (May 2023). These rates are beneficial for your clients’ uninvested cash, and deposits are placed with leading UK banks. With Transact:

• We only use banks with UK banking licences (currently Barclays, Clydesdale, HSBC, Lloyds, NatWest and Santander).
• We provide a direct pooled holding not invested in money market funds.
• All interest is passed on – Transact does not skim off this headline rate.
• We offer the same rate – the rate will not reduce due to the client’s investment sitting in any kind of charge tiering.

Please contact your Adviser Support Manager (ASM) for further information.

* The annual equivalent rate of the interest earned by the cash Transact held on behalf of investors for the period 01/05/2023 to 31/05/2023. This rate is not guaranteed and will fluctuate with market conditions, which may reduce the underlying rate of return on any cash held.

1. Introduction
2. Transact Online (TOL) – Recent Enhancements
3. The Year of the Transfer
4. Consumer Duty & Cash Interest
5. How to Make Your Business as Fit as a Fiddle
6. Share Class Conversion
7. Transact- BlackRock MPS Update
8. Adviser Succession Planning
9. Strategy Changes for Pension Planning Following the Budget
10. Fund Changes
11. Interest on Cash Deposits
12. Transact Events 2023