Over 4,000 out-of-pocket investors in Neil Woodford's failed Woodford Investment Fund (WEIF) have joined a £200 million class-action lawsuit against broker Hargreaves Lansdown PLC (LSE:HL.). Claims-management firm RGL initially launched legal action against Hargreaves in 2022 on behalf of 3,200 investors, citing the broker's role in promoting the collapsed fund.
The launch of "zero-fee" trading broker Robinhood's in the UK last month is seen as "another headwind" for Hargreaves Lansdown PLC's (LSE:HL.) market share, leading UBS to reiterate a 'sell' rating on the shares.
Hargreaves Lansdown posted higher half-yearly profit on Thursday, but the investment platform's shares tumbled more than 8% on concerns around increasing outflows.
Hargreaves Lansdown PLC (LSE:HL.) experienced a sharp decline in its net new business, however its assets under management increased ahead of inflation year-on-year.
News that Barclays Smart Investor has changed its fee structure is better news for rival wealth platforms AJ Bell and abrdn than Hargreaves Lansdown, suggest analysts at Citi. Barclays has scrapped its £4 monthly fee with a fee now based on a percentage of monthly balances.
AJ Bell and Hargreaves Lansdown stand to lose a chunk of their profits following the warning from the FCA over the interest paid on customers' “idle cash”, according to US bank Citi. In a “dear CEO” letter to the investment platforms, the FCA spelt out its expectations for firms' platform cash revenues under Consumer Duty legislation, Citi noted.
The Financial Conduct Authority is concerned that customers are being overcharged by investment platforms in the United Kingdom, as per a letter it wrote to 42 firms in total on Tuesday.
Here are the main stories from the FTSE 100 and FTSE 250 in Tuesday's session.
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