Wednesday, 04 September 2013 10:47
Hargreaves Lansdown benefits from RDR with client growth
Customers seeking self-directed investments has led to Hargreaves Lansdown surpassing 500,000 clients.
In its preliminary results today, the firm said the RDR rule changes meant it now had 507,000 clients, up 76,000 since June 2012.
It saw an 85 per cent increase in transfers from adviser platforms and new assets from advisory business were up 42 per cent.
Ian Gorham, chief executive of Hargreaves Lansdown, said: "The rules have encouraged a move to self-directed investment resulting in a flood of transfers of assets and clients gained from advisory businesses.
"We have also seen a rise in business from our fee-based financial advice business and telephone advice initiative, partly as a result of the numbers of firms withdrawing advisory services to some of their customer constituents."
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The firm said it would be getting rid of its 'platform fee' which applied to index-tracking funds. This was a flat fee of £1 or £2.
A new tariff would be introduced which would be percentage based to suit the small investor, tiered to reward larger accounts and have no account or manual dealing fees.
This would be formally announced later this year and launch in early-2014.
Mr Gorham said: "Our new RDR pricing structure will be specifically designed to be fair, attractive and excellent value for both small and large investors. Hargreaves Lansdown will again pay its corporate taxes in full in the UK."
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In its preliminary results today, the firm said the RDR rule changes meant it now had 507,000 clients, up 76,000 since June 2012.
It saw an 85 per cent increase in transfers from adviser platforms and new assets from advisory business were up 42 per cent.
Ian Gorham, chief executive of Hargreaves Lansdown, said: "The rules have encouraged a move to self-directed investment resulting in a flood of transfers of assets and clients gained from advisory businesses.
"We have also seen a rise in business from our fee-based financial advice business and telephone advice initiative, partly as a result of the numbers of firms withdrawing advisory services to some of their customer constituents."
{desktop}{/desktop}{mobile}{/mobile}
The firm said it would be getting rid of its 'platform fee' which applied to index-tracking funds. This was a flat fee of £1 or £2.
A new tariff would be introduced which would be percentage based to suit the small investor, tiered to reward larger accounts and have no account or manual dealing fees.
This would be formally announced later this year and launch in early-2014.
Mr Gorham said: "Our new RDR pricing structure will be specifically designed to be fair, attractive and excellent value for both small and large investors. Hargreaves Lansdown will again pay its corporate taxes in full in the UK."
• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.
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