Hargreaves Lansdown chief bullish as shares pounded on FSA move

Time for a thorough review of the Hargreave's fund manager rebates and their woeful cash account...... is this the most expensive non-advice system in the market place?

I challenge you boys at Citywire to do this.....perhaps one of the journo's might oblige?

HL provide an excellent service, competitively priced and their web site is one of the best I have seen. The change in FSA regulation will obviously mean re-thinking on the part of HL and to their business model but they have until December 2012. There is a case for substantial reduction in charges both by platform providers and Fund managers as most of the transactions are on the internet which involves very littele work and paper.

I have however one concern re HL cash account which hardly pays any thing. You can get anything up to 3% these days and I am sure HL must be taking advantage of this. This probably then goes to susidize the overall cost. Swings and roundabout.

HL object to queries being raised and you I get a better rebate elsewhere. Stay clear of HL!!

I totally endorse 'Chanders' point, perhaps they should look at a certain stock broker in the I of Man who doesn't flood us with Direct Mail - the joy of HL and the print industry somewhere.

I have used HL for many years for both funds, stocks, bonds invested in SIPPs, ISAs, VCTs and regular investments through their Vantage scheme, and have found them to always be professional, helpful and competitive. I would recommend them, and do to many friends, unreservedly.

HL provides an excellent Service both for Funds and Shares although more weighted to Funds.If you compare their costs to Brokers they are streets ahead and open about their charges and trail commission.Brokers charge on amounts they hold on deposit from 1/2 % to 1% p.a. and credit nominal interest and charge very full commission'

Its the traditional broking companies who are going to suffer

backhanders should be banned

So, the FSA's statement this morning has resulted in £300 million being wiped off the value of HL shares - talk about the law of unintended consequences!

How many HL customers complained to the FSA because HL rebated trail commission? I certainly didn't.

FSA medding for the sake of it. Whatever they do it won't improve anything.

In my opinion HL is a far more professional organisation than the FSA - consider their recent track records.

If you asked 100 Citywire users where the FSA should be putting their efforts I bet not one would even think of this and I also bet they would all come up with something more relevent to todays monetary problems. The FSA are still the same bunch of wasters except now they find simple little unimportant projects to try and prove they exist!

HL have just reduced their charges for share dealing and for holding shares within an ISA. A sign they are already moving from their fund supermarket model?

It is probably Goldman's aka the Vampire Squid that's behind the share price decline aggressively shorting the shares in revenge for Landsdowne selling its stake in the company.

HL share dealing charges and ISA and SIPP management fees have been excessively high but they have taken steps to rectify this. They remain a very professional outfit although I have reservations about the morality of the level of profits they make which can only come from our investments thus reducing returns but this is the fault of the whole financial services structure. I go for that I of M broker mentioned above.

I speak as I find.I have been dealing with H.L. for a number of years. The service they offer me is streets ahead of anything I can get locally in Dublin. I have found their administration to be superb. What you see is what you get. The dealing costs are very reasonable. I believe their web site is good and the information most helpful. I would love them to come into the Irish market and shake things up!. I do agree with the criticism of the cash account. The interest or lack of is woeful. I for one would be prepared to move funds onto their account if they were more competitive and moved to reflecting whats available in the market. Clearly,from their point of view they are loosing a revenue source here. Maybe time for a rethink. Apart from this one issue I am a great supporter and will continue to recommend H L to my friends

CHRIS CARTER

I think HL is a great enterprice. It's good that backhanders are going! Good companies would come out better in a fairer competition. Treat the recent fall as buying opportunity.

Regulation is mushrooming wherever it is set up costing not millions but billions and we pay for this.

The FSA is costing Banks and Building Societies Billions, which we pay for and now the FSA is dabbling in Fund Management, presumably with additional highly paid Staff. I may be making a sweeping statement and if so I hope someone can prove me wrong. I thought the conservatives were going to close the FSA, but it seems to grow and prosper.

Surely there is a simpler approach to tidy up the complexity of charges across

the board and to make them transparent to all, of course allowing a fair return for the services offered. People from within the Industry, who know their job could set up a small unit or steering committee to put forward a simple solution acceptable to all concerned. I very much doubt the FSA can do this effectively, nor at an acceptable cost.

When I asked HL in writing about their charges for a SIPP account they said they would not write back and I should see their published prices, which are as clear as mud.

I also asked other questions, to which I have not had an answer, save to say that I had to have a CREST account. They did say vrebally that there were no charges for a CREST account. For how long I wonder.

Something to look at with 'long teeth'!

I have used HL for many years, and having recently retired, I am in the process of changing my Acc funds to Inc funds. This process has been seemless and at no cost to myself. I thoroughly recommend HL.

Volume discounts are used widely in manufacturing/supplier contracts. Why not in investments? In fact HL have adopted this in share dealing as of 1st August, Volume users can deal for £5.99. Why should HL not with their purchasing power with funds not have a similar advantage. This is totally different from backhanders.

Nothing but praise for HL - I also use HSBC, Barclays and Internaxx - HL are streaks ahead - (although higher charges) - but sometimes its good old fashioned service that counts!

HL is simply the best in the market.. Efficient, cost-effective and very professional indeed. Would recommend it anyone. It has saved me tens of thousands of charges which would have gone into Advisors!!!

You get what you pay for and HL is Waitrose, not ASDA. Administration is excellent and the phone is always answered by someone who knows what they are talking about.

It looks as though they are moving away from their longstanding bias towards funds rather than shares and they still don't let you deal as easily in bonds as they could - though they have just cut their charges for PIBs. Hopefully, they will also improve the service for bonds in due course.

In the old days, unit trust were undoubtedly expensive 5% front end as well as buy sell price differnence. Some things have changed to improve the situation including oeics, low cost trackers, ISA fees generally zero and fund supermakets. In short more equities per pound spent. I hope the FSA does not change things in such a way as to make it more expensive for the small investor.

I have also used HL for a long time, as well as other brokers such as Selftrade and the Fidelity Fundsnetwork. I like HL a great deal for their unit trust platform, their charges are very competitive and transparent. They are a professionally run company and have my total recommendation. I too am glad to see their share price commission come down and will definitely continue using them.

I have increasingly used HL for SIPPS ISA and normal share and ITrust investments for years, and find them, as said by others, thoroughly professional and very patient with us over 75s! Their web site is brilliant, their virtual share portfolio provision actually gives the same price as the FT, which sadly others I have tried do not. Yes, they are going to have to fight to keep us regular customers happy, but the signs so far are encouraging, they will have to meet the competition obviously, or lose their superb business model, I will stay until proved wrong, I hope they succeed, as I do not want to move, but I will be watching charges..

I generally agree but just recently they have stated they will not be offering rebtes on holdings of less than £1000. and there investment magazine does not mention some excellent unit trusts are these not offering special terms ?

The FSA should focus on things which have a disastrous effect on peoples' lives, but that's hard work! This is simply meddling for the sake of justifying its existence.

I am a big supporter of HL. Their people are professional and informed, and their website carries a wealth of useful and potentially valuable information, giving me confidence in the decisions I need to make.I do not get this elsewhere.

Of course, you can often find things cheaper if you spend enough time searching, and yes, their cash account is poor (so keep it elsewhere!), but when you are dealing with your future financial security, it's about having confidence in the overall package which counts.

The Industry is renowned for its sheep-like behaviour. One article, based on incomplete information from what I can see, and panic ensues.

Unless HL are keeping some bad news well hidden, I see no reason why the share price shouldn't be back to normal once this is yesterday's news.

Good 'buy' prospect I reckon!

'One article, based on incomplete information, from what I can see, and panic ensues. ' That captures the essence of financial journalism.

snoekie wrote: "When I asked HL in writing about their charges for a SIPP account they said they would not write back and I should see their published prices, which are as clear as mud."

Well as a long term HL client (inc. the SIPP) I am pleased HL keep their costs down by not writing a letter to an individual setting out the simple SIPP charges that are clearly shown on their website for all to see. Of any web-based SIPP HL has the fewest, simplist and most transparent charges - dead easy to understand for funds and shares - all from the website.

As for cash, I dont leave much on the platform, I simply transfer it in and out from my external bank - its no more than 5 clicks to add money from my external bank (debit card) and about the same to move money out from HL (BACS) - all online, quick and free.