Client understanding of cash charges remains low, new research highlights need for clearer disclosure

Client understanding of cash charges remains low, new research highlights need for clearer disclosure

Transact is calling for greater industry transparency and consistency in how cash interest is disclosed, after new research finds that most advised clients are unaware platforms may retain part of the interest earned on cash holdings.

Under the FCA’s rules, platforms can only retain interest on client cash where doing so is compatible with Consumer Duty obligations, including requirements around fair value and customer understanding.

Independent qualitative research, conducted by Research in Finance in April 2026, explored how advised clients understand investment charges and platform cash interest.

The key findings were that:

• Most clients are unaware that platforms may retain part of the interest earned on cash holdings.

• Clients struggled to find disclosures relating to retained cash interest.

• Many participants reacted negatively when informed that platforms could retain interest on cash, particularly those with larger cash balances.

The research consisted of 10 in‑depth interviews with retail clients, including four vulnerable clients. All held assets in excess of £100,000 and none were Transact clients. Participants had long‑standing adviser relationships, some spanning over 20 years, and met their advisers annually, quarterly or on an ad hoc basis to address specific needs.

The research paints a largely positive picture of adviser relationships. Clients reported high levels of trust and engagement, and most demonstrated 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. Pre‑work undertaken by each client before their 30-minute research interview suggested that these charges were clearly disclosed and routinely reviewed.

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. None recalled meaningful discussions about cash with their adviser, and most said 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.

For example, someone with £500,000 invested and 5% of it held as cash (£25,000). If the platform keeps 2% interest on the cash and passes 3% to the client, this would mean the platform keeps around £500 a year (and the client would get £750 interest).

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. The research suggests retained cash interest remains a blind spot even among highly engaged advised clients who otherwise understand platform and adviser charges well.

Transact believes this is not an adviser issue, but an industry‑wide disclosure challenge. Advisers are already meeting high standards of professionalism and transparency in many areas, but the research highlights the need for clearer, more consistent presentation of cash positions and associated interest across platforms and client reporting. Transact is calling for greater industry transparency and consistency in how cash interest is disclosed, after new research finds that most advised clients are unaware platforms may retain part of the interest earned on cash holdings.

Tom Dunbar, CEO at Transact, added:

For further information please contact:

Tom Dunbar (Chief Executive Officer, Transact)

Andrew Cullen Jones (Chief Development Officer, Transact)