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Hargreaves: don't worry about us, we'll be just fine

by Daniel Grote on Apr 26, 2013 at 09:05

Hargreaves: don't worry about us, we'll be just fine

Hargreaves Lansdown chief executive Ian Gorham has said the Financial Conduct Authority's (FCA) publication of final rules for platforms, which bring execution-only providers under the measures, has brought about 'clarity we have awaited for some time'.

Gorham (pictured) said the timescale for implementation, 'sunset clause' for legacy business and bans on fund manager kick-backs and cash rebates were 'broadly as expected'. 'We have planned for all of these,' he said.

He added that the rules would not affect the discount broker’s ability to negotiate deals with fund groups. 'As we have said for some time, we expect to offer all Hargreaves Lansdown clients the ability to buy commission-free units in due course. The new rules allow us to finalise our plans for this. As we have done for many years, we will continue to seek to use our negotiating power to reduce the cost of investing for our clients.'

He said that Hargreaves had always intended to treat new and existing clients in the same way, meaning it would not be affected by the extension of the platform rules to legacy business.

Gorham added that implementing the changes in line with the FCA's timetable was 'easily achievable', claiming much of the work was already complete.

While the FCA has announced it will consult on applying its platform rules to the Sipp sector, Gorham said Hargreaves would apply the rules to its Sipp business in any case. 'This will be cleaner, future proof and in the spirit of what the FCA is seeking to achieve. As we are confident in our plans there is no reason not to pply them across our business.'

Shares in Hargreaves dropped 1%, or 9.75p, to 967.25p, on the news.

8 comments so far. Why not have your say?

Craig Phillips

Apr 26, 2013 at 09:35

"we will continue to seek to use our negotiating power to reduce the cost of investing for our clients,"

Gotta love em, what noble consumer (I mean shareholder) champions ;)

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j p

Apr 26, 2013 at 10:07

i thought it was a problem if you mislead the market

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Jonathan Kirby

Apr 26, 2013 at 10:26

Now down 1.5%

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Mark Stokes

Apr 26, 2013 at 10:55

I love Hargreaves Landsdown.

They remain positive at all times and do excactly what they promise for the majority of customers.

Having SJP and Hargreaves as successful examples of finacial services businesses can only be good for the entire industry. Some positive news among the bombardment of press negativity.

We may not agree with or seek to emulate either business model but we can suerly accept that they get a lot more right than wrong?

RDR creates an opportunity for Finacial Advisers and Finacial Planners to make furher strides to professional profitable and scaleable businesses and instead we gloat at a fall in Hargreaves share price or critice SJP for being limited advice.

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Apr 26, 2013 at 14:50

Am I the only one chuckling at the headline?

My first thoughts were "Well I know you two will be, it's your employees and shareholders I'm worried about".

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Apr 26, 2013 at 16:04

Why worry, be happy! Mystic Peg says: I see a long vacation ahead!

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Apr 27, 2013 at 12:00

HL like SJP are massive success stories in our industry like it or not. Their success is based on giving the client what they want rather than trying to give them something they don't value.

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Apr 27, 2013 at 17:21


Not quite right there, your perception is a little warped. HL are an on line broker, selling investments you can purchase at lower cost elsewhere, however by not being totally truthful with customers jazz their proposition up to make it look better than it is. Yes they are successful, but should they be allowed to get away with it for much longer.

SJP on the other hand provide OK products albeit at a cost, teamed with salesman who know little but with a good support base.

Customers rarely know what good looks like, however both firms have excellent marketing strategies, the likes of which an independent can only dream of.

A bit like accountancy really, loads of great local firms and a few so so international outfits offering services to defraud the taxpayer but are highly successful. Would your conscience allow you to work for either SJP or HL or even on of the huge accounts?

I hope not.

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