View more on these topics

Hargreaves fined for failing to warn investors on zero

Hargreaves Lansdown Asset Management has been fined by the FSA for selling its Hargreaves Lansdown Secure Growth Portfolio for a period in 2001.

The Secure Growth Portfolio was a specialist portfolio of zero dividend preference shares which HL closed over two years ago.
A statement from the group said the FSA believes that HL was too slow to realise the correlation between falling stock markets with a corresponding impact on the risk profile of certain holdings in the portfolio and communicate the impact on the risk profile of the Secure Growth Portfolio to investors.

The FSA action does not include any allegation concerning the structuring, management or pricing of any zero in the portfolio nor collusive behaviour.

HL has offered compensation to all investors in the Secure Growth Portfolio who lost money over a set period, whether or not they have made a formal complaint.

The firm says it is not one of the 21 firms widely reported to be under separate investigation for collusive behaviour relating to the design and sale of zeros.

HL chief executive Peter Hargreaves says: “We very much regret the public reprimand of Hargreaves Lansdown Asset Management in relation to the operation of the HL Secure Growth Portfolio. This is the first in 23 years of business and you can be certain that steps have been taken to guard against such a situation arising again.”

Recommended

Smee warning that payment menu is the last chance for commission

Aifa director general Paul Smee is warning the industry that failure to embrace the spirit of the menu could see commission-based advice slipping away. Smee says if the industry does not use the opportunity of the menu to make commission more transparent then he believes the regulator will come back with more ideas beyond the […]

Mark Lofthouse

Mortgage Brain chief executive Mark Lofthouse is losing no time over the arrival of M-Day. The highly motivated 43-year-old is driving the mortgage-sourcing system to an FSA regulation end-date of “now” rather than the official October 31 date and he is confident that his company is meeting most of the challenges posed by the onset […]

Tenet boosts non-reg business with protection deal

Tenet Group has bought non-regulated business Premier Connections for a mix of cash and shares. Southampton-based Premier Connections does health and protection business. Its network arm Premier Protection and its 2,500 non-regulated advisers are being bro- ught into Tenet but will continue to trade independently within the group. Tenet group chief executive Simon Hudson says […]

Interdependence fined £125k for drawdown advice

The FSA has fined Tenet-owned network Interdep-endence £125,000 for what it calls “serious failings in the supervision of appointed representatives”. The fine relates to income drawdown advice that Interdependence RIs were giving customers, recommending that they withdraw cash early from their pensions. The FSA heavily criticised the “ineffectiveness of the firm&#39s systems and controls” for […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com