Hargreaves Lansdown Share Discussion Threads

[ochs] 12/12/2023 14:03

Interesting timing for AJB to be ready to announce price changes today!

[navigo] 12/12/2023 12:31

The FTSE 100 advanced as jobs and wages data brought hopes that policymakers were a step closer to an interest rate cut, but Hargreaves Lansdown (HL) tumbled as the City watchdog ordered retail brokers to stop ripping off customers on their cash balances.

[sunshine today] 12/12/2023 11:28

This was my post back in Oct.


////////////////////////////////////////////////////////////////////


sunshine Today23 Oct '23 - 12:16 - 2450 of 2532

Any business that is making a huge slice of its profits in this manner is doomed.

It’s totally unethical

It’s sly and just like the banks the government is applying pressure

Rightly so

[budd_foxx77] 12/12/2023 11:17

I don't get what the FCA are trying to do here, the release is very vague. They haven't named the firms they're looking at and haven't even decided what to do yet. Seems v off. Guess it's up to the FCA to release some more details. Given the stock move expect HL will have to respond to this.

[mrmark01] 12/12/2023 10:57

Pretty sure HL don't charge for holding cash, they just earn more than they Pay out which is business.

Its not like they delay dividend payments from clients to make interest on that as well like some other commission free brokers.

[thomstar] 12/12/2023 10:56

Blood bath

[budd_foxx77] 12/12/2023 10:09

hi all I just had a quick question - I am a client of HL and this is the first I heard of double-dipping. I just had a quick look through HL's website. It says quite clearly regarding their SIPP, ISA and fund and share accounts that there is no charge for holding cash. Any ideas what accounts the FCA are looking at?

[wynterwilde] 12/12/2023 10:06

Is it usual for an UFPLS SIPP withdraw to take so long?

I applied on the 13th November and it took 'till the 21st to be advised that payment would be made between 5-10 working days....we're at 15 and counting....Makes me wonder if they have systemic problems.

[eezymunny] 12/12/2023 09:38

IIRC James Hay charge(d?) for holding cash.

[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.