Citywire for Financial Professionals
Stay connected:

View the article online at http://citywire.co.uk/money/article/a1028809

Hargreaves & SJP shares hit by FCA funds clampdown

Shares in online stock broker Hargreaves Lansdown and financial advice group St James's Place fall to bottom of FTSE 100.

 
Hargreaves & SJP shares hit by FCA funds clampdown
Shares in fund groups and platforms have fallen after the Financial Conduct Authority (FCA) confirmed it would introduce all-in fund fees as it attacked asset managers’ ‘sustained, high profits over a number of years’.
 
The FCA said it supported fund managers’ use of a single fee for investors, including asset management charges, an estimate of transaction costs and intermediary fees.
 
The City regulator also wants the price paid by retail investors to move more in line with the cheaper costs levied by institutional clients.  It is considering consulting on changing rules on performance fees, having found some funds operate with too low a threshold. The FCA will also launch a market study into competition in the platform market and is considering whether it is possible for commission payments to financial advisers on old products to be switched off.
 
The regulator’s stance hit shares in asset managers, platforms and financial advisers. Online stock broker Hargreaves Lansdown (HRGV) was the biggest faller on the FTSE 100, down 3.1% at £12.96, with financial advice group St James’s Place (SJP) down 1.3% at £11.70.
 
On the FTSE 250, Aberdeen Asset Management (ADN) fell 1.4p to 293p and Jupiter Fund Management (JUP) was down 2p at 491.3p.
 
Daniel Godfrey, former head of fund manager trade body the Investment Association, said the FCA had spared fund groups from some of the more radical measures it had been considering.
 
‘Investment managers will be relieved today,’ he said. ‘The FCA has delivered a report which spares them the harshest potential remedies flagged in their interim report last November.’

7 comments so far. Why not have your say?

RippedOff

Jun 28, 2017 at 16:30

"Hargreaves Lansdown was the biggest faller" - someone must think they have the most to lose ....

report this

Franco

Jun 28, 2017 at 16:53

If you have not seen a bill from St.James Place, you do not know the meaning of being ripped off, RippedOff

report this

Diggers

Jun 28, 2017 at 17:50

Could it just be that if HL have to reduce their fees, they may win back some of their lost clients. After all so many wealthier investors have left them, who pay far more in total charges than the little punters, and they do offer a really first class service, which is why so many have stayed with them?

report this

Law Man

Jun 28, 2017 at 19:25

To me it seems unfair to treat HL and StJP as the same.

Yes, HL's 0.45% p.a. on OEIC funds is high; but if you hold ITs, ETFs, etc you can avoid this. For other services HL is fair e.g. no charges for draw down.

From what I have read about StJP it charges a lot, with many 'sneaky' fees.

If a broker can make a high profit by running a good business, with economy of scale and excellent service, I do not mind. If another broker charged little and made no profit, but gave a bad service I would not use it.

report this

CCT.

Jun 29, 2017 at 19:10

Any views on Barclays new set up.

report this

Stephen B.

Jul 02, 2017 at 15:49

On the last comment, I think their new fees for share-based portfolios are bonkers - the maximum charge goes from 30/year to 1500! They seem to have decided that they don't want the business of people with large share or IT portfolios. The minimum charge is also steep at £4 a month.

report this

Franco

Aug 16, 2017 at 15:23

Fund groups do all the work, charge about 0.9% and FCA is saying they should cut their charges. Brokers dish out pre-printed list of last year's best performing funds, charge 0.5% and FCA is saying nothing.

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire Guide to Investment Trusts


In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

More about this:

Look up the shares

  • Hargreaves Lansdown PLC (HRGV.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • St. James's Place PLC (SJP.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Jupiter Fund Management PLC (JUP.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Aberdeen Asset Management PLC (ADN.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Read more...

Pound falls after May's pitch for Brexit transition

by Daniel Grote on Sep 22, 2017 at 16:30

Sorry, this link is not
quite ready yet