Hargreaves Lansdown Share Discussion Threads

[florence141414] 12/12/2023 09:33

85% of interest earned passed through to clients. What do we think? Is that enough to satisfy the FCA such that no action is required?

[juliemara] 12/12/2023 09:17

What made you so bitter?

[porsche1945] 12/12/2023 09:09

U.K. government can’t stay out of business and are regulating profits away from anything like this/telcos etc….place is doomed. Tories have been an utter disaster, Labour may be worse with the mess they are inheriting….bank shares in the U.K. have never recovered in over a decade thanks to the regs put in after 08. Anything they can over regulate they will, for votes. Just buy short dated bonds, this market is goi g to tank soon, badly.

[spectoacc] 12/12/2023 09:01

Agreed @Eezy - an absolute racket.

If FCA want to look at interest on cash balances, look at banks. I've business a/c's that pay 0%, and make it very difficult to open interest-bearing a/c's.

What SIPP providers are they referring to who make charges for holding cash? Or do they just mean a % on the total?

[boros10] 12/12/2023 08:57

Looks like AJ Bell has more work to do than HL to justify fair value. Hargreaves Lansdown (£10k to £50k)ISAs 2.95% SIPPs 3.65%Hargreaves Lansdown more than £100k cash)ISAs 3.70% SIPPs 4.20% AJ Bell (above £10k) ISAs 2.45% SIPPs 3.70%

[eezymunny] 12/12/2023 08:55

I suppose if the FCA think taking some of the interest from customers (over and above a "fair" amount) is unreasonable, their next logical step is to say that charging a percentage on funds held is equally bad. I mean it's an absolute scandal....if someone simply wants to hold £1m in Fundsmith, for example, HL charge a platform fee of £3000 pa (AIUI). Practically theft IMO, given that HL do very very little. Their 50% operating margin says it all. Too high. Competition all doing the same nonsense AFAICS. Where's the CMA???

[typo56] 12/12/2023 08:41

Does seem an overreaction. How much interest do IG pay? Zilch? Yet IGG share price?

[techno20] 12/12/2023 08:29

Overreaction IMV. 4.2% currently being paid on SIPP cash balances.

[hunter154] 12/12/2023 08:25

Thanks guys

[boros10] 12/12/2023 08:21

https://www.fca.org.uk/publication/correspondence/dear-ceo-letter-retention-interest-earned-customers-cash-balances.pdfEnding double dipping is unlikely to hurt earnings very much. It would likely mean excluding cash from the platform fee calculation. Brokers are currently earning higher BPS margin on cash balances Vs their platform fees BPS margin. The bigger concern is the need to demonstrate fair value against the cost of managing these cash balances. The FCA don't appear to want to hear the argument that the extra interest is partially offsetting lower brokerage income.

[junior21] 12/12/2023 08:12

Same with AJB, must be sector specific but can't find anything just yet

[hunter154] 12/12/2023 08:04

What just happened? We are down 8% on the open, without any news.

[boozey] 11/12/2023 18:07

Good turnaround today. This after the 27p plus dividend take into account.

[dickbush] 11/12/2023 17:09

If brokers/financial advisors were sued every time they recommended a loss-maker there wouldn't be one left standing.

Never made a loss on an investment? You're either very new to the business or a liar.

[giltedge1] 08/12/2023 11:16

I can't see HL being sued for a recommendation, so too does Investors Chronicle!
Seems cheap as has 1.5m clients, costs at least £200 to obtain a client through advertising etc. Can also cross sell to large data base, this has value not recognised on Balance Sheet.

[stoopid] 08/12/2023 00:48

They are only suing Link because they are Administrators/managers of the fund and the wind down and subsequent mismanagement of supposedly safe funds.HL. May be sued for mis-selling as they were still promoting and selling the fund until its suspension.Totally different reasons for litigation.

[raj k] 07/12/2023 14:44

I though that the top two law firms that are representing clients (Leigh Day and Harker Parker or whatever they are alled) would only be suing Link? Only one of the smaller ones are going after HL as well. Isnt the HL exposure to litigation minimal unless seperate lawsuits are brought after. Does anyone know the cost of total funds lost by shareholders of WIE that bought it via HL directly or through their MM funds?

[stoopid] 05/12/2023 12:43

Depends if the threat of litigation goes away...

[ochs] 05/12/2023 10:28

Yes, The Times article was saying similar - so when the result is announced, and assuming the package is accepted HL shares ought to get a boost.

Additionally as well as taking many years, even if successful a class action would give the lawyers 35%!

Found this in the Mail article "Investors in the collapsed Woodford Equity Income fund have until 5pm on 4 December to register to vote on a controversial £230million compensation package. Registered investors will cast a vote on 13 December to approve or reject the compensation scheme, which if approved will see up to £200million paid out in the first quarter of 2024. In order to pass the package will require the approval of 50 per cent of investors by number and 75 per cent by value."

Interestingly HL will be able to vote themselves based on the holdings in their 6 Multi-Manager funds... could be quite a big percentage.

[stoopid] 05/12/2023 07:08

Both articles suggest that class actions against HL and other companies could be blocked if investors vote for the FCA payment scheme.Lawyers are saying people would get more back if investors litigate. FCA and others point out it could be many years before any recovery of funds if the deal isn't voted for etc...

[stoopid] 05/12/2023 07:02

Alsohttps://www.thisismoney.co.uk/money/markets/article-12823207/Woodford-investors-5pm-register-vote-230m-payout.html

[cwa1] 04/12/2023 13:21

You've got mail ;-)