Shares in fund broker Hargreaves Lansdown took the brunt of the impact on markets from the regulator’s report into the practices of the fund management industry this morning (28 June).
At 10.50am on London’s main index the FTSE 100, shares in Hargreaves Lansdown and wealth manager St James’s Place were both down.
Hargreaves Lansdown’s stock had fallen 2.7 per cent to £13.03 per share.
St James’s Place suffered in early trading but had recovered ground and by mid-morning was down 0.25 per cent to £11.88 per share.
Both businesses are so-called vertically integrated firms that offer consumers financial products and advice, a model the Financial Conduct Authority revealed in today’s paper it is looking at, following conflict of interest concerns being raised by the industry.
However shares in fund houses with the same model settled slightly on the upside.
Old Mutual, vertically integrated by way of its platform arm Old Mutual Wealth and advice business Intrinsic, was up 0.05 per cent at £1.97.
Standard Life, which owns advice network 1825 and has its own platform, was up 0.41 per cent at £3.92 per share.
Early morning volatility for fund management company shares aside, markets have largely shrugged off the FCA report, in which the regulator recommended a single all-in fee for investors, and will further investigate how disclosure can be improved.
laura.miller@ft.com
