Hargreaves Lansdown Review

Founded in 1981, Hargreaves Lansdown has more than four decades of operating history and has grown into the largest direct-to-consumer investment platform in the United Kingdom. Following its £5.4 billion acquisition in 2025, the company is now owned by Harp Bidco Limited, a holding company backed by a consortium comprising CVC Capital Partners, Nordic Capital and the Abu Dhabi Investment Authority (ADIA). As part of the transaction, Hargreaves Lansdown was delisted from the London Stock Exchange and became a privately held company. Today, Hargreaves Lansdown administers approximately £172.7 billion of client assets for more than 2 million customers, making it one of the largest investment platforms in Europe. The average client account size is approximately £85,000. The business remains strongly profitable and generates revenue primarily from platform fees, cash balances, fund distribution and investment services.

Hargreaves Lansdown remains a highly profitable business, reporting profit before tax of approximately £405 million in FY2025. While the company is no longer publicly listed and does not have a credit rating from a major rating agency, it remains the largest direct-to-consumer investment platform in the United Kingdom. Hargreaves Lansdown is not designated as a systemically important financial institution. However, given its scale, large customer base and prominent position within the UK retail investment market, it is conceivable that regulators would seek an orderly resolution in the event of severe financial distress. This should not be viewed as an implicit guarantee, but the platform's size and importance may reduce the likelihood of a disorderly failure compared with smaller providers.

The Financial Services Compensation Scheme (FSCS) protects eligible clients up to £85,000 per institution in the event of firm failure. Importantly, this limit applies per customer, per institution, rather than per account. For example, a client holding £85,000 in an ISA and £85,000 in a SIPP with the same provider would generally be covered for up to £85,000 in total, not £170,000. Eligible cash balances held with UK banking institutions are generally also protected up to £120,000 per person, per bank, subject to the applicable FSCS rules.

• Client cash is held on trust and spread across a panel of major banks, including Barclays, HSBC, Lloyds, Bank of Scotland, Santander and Goldman Sachs, among others. 
• Client securities are typically held in nominee accounts through Hargreaves Lansdown Nominees Limited, a non-trading company established solely to hold client assets.

• Woodford Equity Income Fund: The most significant reputational issue in the company's history remains its involvement in the Woodford Equity Income Fund collapse. Hargreaves Lansdown continued to feature the fund on its recommended lists until trading was suspended in 2019, despite growing concerns about the fund's increasing exposure to illiquid investments. The episode led to regulatory scrutiny, litigation and criticism regarding potential conflicts of interest in the firm's fund-selection process. While the matter has largely been resolved and did not threaten the financial stability of the company, it remains an important consideration when assessing Hargreaves Lansdown's track record.
• Proprietary Funds: Hargreaves Lansdown also operates a range of proprietary multi-asset and equity funds under the HL Funds brand. These funds typically carry ongoing charges of roughly 0.9% to 1.2%, which are substantially higher than the costs of broadly diversified passive alternatives. As discussed elsewhere on Banker on Wheels, we remain sceptical of the ability of most active managers to consistently outperform low-cost index funds after fees.
• Client Cash Interest: More recently, Hargreaves Lansdown has faced criticism over the level of interest retained on client cash balances and the overall competitiveness of its fees relative to lower-cost rivals.

Hargreaves Lansdown does not offer margin loan, derivatives, futures and options. 

Hargreaves Lansdown pays interest on uninvested cash balances, although the rates are not particularly competitive. Stocks & Shares ISA cash balances currently earn between 1.31% and 2.17% AER depending on the amount held, while SIPP accounts receive somewhat higher rates of up to 2.63% AER. Interest is calculated daily and credited monthly.