Company News 

Hargreaves: the drawbacks of scale

Hargreaves: the drawbacks of scale

Hargreaves Lansdown (HL.) has been growing at a rapid pace – more than doubling its assets under administration during the past four years. As a result of this increase in scale and in the complexity of its business, the Financial Conduct Authority (FCA) plans to reassess the regulatory capital it requires Hargreaves to hold. Management estimates it will need to retain an additional £50m and has decided to scrap the special dividend for the 2017 financial year. Management intends to maintain the 65 per cent payout ratio for its ordinary dividend: full-year results are due on Tuesday.

To continue reading, subscribe today

and enjoy unlimited access to the following:

  • Tips of the Week
  • Funds coverage
  • Weekly features on big investment themes
  • Trading ideas
  • Comprehensive companies coverage
  • Economic analysis
Subscribe
Subscribe to Investors Chronicle

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now