Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/money/article/a615753
Hargreaves Lansdown to offer Sipp loyalty bonus
Investment supermarket reveals plans to launch a loyalty bonus for its Vantage Sipp customers next year.
Hargreaves Lansdown, the investment ‘supermarket’, plans to launch a loyalty bonus for its Vantage Sipp (self-invested personal pension) customers next year as it responds to growing competition in the DIY investor market.
The move would bring the firm’s Sipp customers in line with its ISA investors, who already receive an annual 0.5% rebate from the money Hargreaves Lansdown is paid by fund managers.
However, it could risk tensions with the Financial Services Authority, which wants to ban platforms such as Hargreaves Lansdown from taking money from fund managers and passing some of it on to investors.
Full-year results published by Hargreaves Lansdown refer to the company’s wish to increase ‘Sipp incentives’. It will spend £3 million in the financial year and £6 million in 2013/14.
Executive director Peter Hargreaves (pictured) declined to comment in detail on what this would cover, but indicated a loyalty bonus was under consideration by pointing out that Sipps lay outside the scope of the FSA’s drive to unbundle platform charges.
However, the bonuses may have to take the form of extra units in investors’ funds to gain FSA approval.
The news came as Hargreaves Lansdown revealed another strong set of results for the year to 30 June 2012. Profit before tax leaped 21% to £152.8 million with a similar rise in the dividend payments to shareholders. Total assets under administration bucked the falling stock market with a 7% rise to £26.3 billion.
The company also announced that Stephen Lansdown, a fomer chairman who co-founded the Bristol-based company with Hargreaves in 1981, would step down from the board next month. Lansdown, 60,has scaled back his involvement with the company but still retains a 20% shareholding.
Hargreaves, 66, said he had no plans to retire although he stressed the company, which is managed by chief executive Ian Gorham and chaired by Michael Evans, could run very well without him.
Hargreaves Lansdown (HRGV.L) shares firmed 2.5p to 633p.
More about this:
Look up the shares
Tools from Citywire Money
From the Forums
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 email@example.com to your safe senders list so we don't get junked.