You are here: Home - Investing - Experienced Investor - News -

MPs probe Hargreaves Lansdown on Woodford relationship

0
Written by:
12/06/2019
MPs have asked Hargreaves Lansdown to explain it links to Woodford Investment Management after the broker continued to recommend the suspended Equity Income fund to clients until recently.

Nicky Morgan, chair of the Treasury Select Committee, has written to Hargreaves’ chief executive Chris Hill demanding answers about the broker’s commercial relationship with the suspended fund.

MPs have also written to the city regulator this week amid concerns it was slow to react to the Woodford situation.

On Monday, Morgan wrote to the Financial Conduct Authority (FCA) asking for details of its contact with the Woodford fund, and whether it will investigate the events that led to the suspension of the fund.

Trading in the Woodford Equity Income fund was suspended on 3 June after an increase in demand from investors wanting to withdraw their money.

Hargreaves Lansdown clients have been major supporters of Woodford, with clients holding 31 per cent of the Equity Income fund at the end of 2018.

Hill apologised to clients locked in the fund last week, saying he shared their “disappointment and frustration”.

In her letter to the broker on Tuesday, Morgan asked Hargreaves to explain how many clients were exposed to the fund and for details about its engagement with Woodford Investment Management in the run up to the suspension.

She also asked a series of questions about how long the fund had appeared on the firm’s recommended Wealth 50 list, and how the continued inclusion of the fund is considered.

She also questioned how much money Hargreaves made from fees for money its clients held in Woodford Equity Income.

Morgan has given Hargeaves and the FCA until 18 June 2019 to respond.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Which is cheaper – renting or buying a home?

Buying a property isn't accessible to everyone, but how much does renting really cost?

Close