Hargreaves Lansdown Boss Say sorry For Woodford Suspension
The boss of broker Hargreaves Lansdown has allotted a confession following the suspension of a fund it sells.
Chris Hill, chief executive, told he shares clients’ “dissatisfaction and prevention”.
The Woodford Equity Income Fund, managed by Neil Woodford, not moving financiers cashing out this week.
In spite of the suspension of a fund it sponsored to clients through its “Wealth 50” list of top buys, the firm stands by its research, Mr. Hill said.
Mr. Woodford is one of the UK’s best-known stock pickers, suspended the fund after rising numbers of investors asked for their money back.
‘Learn From It‘
“I would like to regrets individually to all clients who have been impacted by the recent problems with the Woodford Equity Income Fund,” Mr. Hill said.
“We all share their dissatisfaction and prevention. Our primacy right now is to support our clients and keep them informed.”
The UK’s financial controller “should have been awake” to problems at Mr. Woodford’s investment fund, former City Minister Lord Myners told the Today Programmed on Friday.
The UK’s financial regulator told to BBC the Financial Conduct Authority had missed “clear warning signs” that things is going badly.
“Our purpose is that remains to deliver the best possible service and selections to allow people to manage their investments simply and effectively,” said Mr. Hill. “The shortcomings of one fund should not detract from the benefits of favorite fund lists like the Wealth 50.
“We are confident in the strength of how we examine research and compile our favorite fund list with a focus on ensuring best value for customers; nonetheless.
We are revising this specific situation to ensure we learn from it and address it for the benefit of our customers going forward.”
On Monday, Hargreaves Lansdown released the Woodford fund off its favorite list. On Wednesday, it curved to pressure to drop its platform fee for Woodford financiers.
Financiers are charged both by their broker and the manager themselves. While Hargreaves Lansdown cut its fee, Mr. Woodford has not cut his management fee.
On Thursday, chair of the Treasury Committee Nicky Morgan said financiers in the Woodford Equity Income Fund should not be charged administration fees while trading in the fund was suspended.