Last checked at 2 Aug 2011 10:08
Hargreaves Lansdown notes the FSA's Policy Statement PS11/9 ("The Platform Paper") published on 1 August 2011.
We have concluded that all changes proposed in the FSA paper required by 31 December 2012 will require little work for Hargreaves Lansdown to implement and will result in no material impact on our business.
We particularly support the new regulatory requirement for re-registration in stock, which needed regulatory intervention. Although we would like to see wider application than is currently proposed, Hargreaves Lansdown has long been a major supporter of investment portability for retail clients.
We note that payments to platforms will be allowed to continue for now and FSA's intention to review the industry model for the future post December 2012. We remain of the view platforms provide valuable services which improve efficiency for both investors and product providers and will continue to seek the best outcome for retail investors in dialogue with the FSA.
Hargreaves Lansdown already uses a range of proven revenue models. We can apply any of these to the fund market and still provide a competitive, low cost, high quality execution only service. As such we are relaxed about both the short and long term outcomes of any revenue model changes and any additional disclosure. Indeed, we see additional opportunity in the potential changes to regulation over revenue streams. We do not believe any changes will materially affect profitability or revenue given our exceptional client base, retention and high service levels.
For further information please contact:
Hargreaves Lansdown +44 (0)117 988 9967
Ian Gorham, Chief Executive
Ben Yearsley, Media and Investor Relations