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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 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.
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