Hargreaves Lansdown’s contribution towards the Financial Services Compensation Scheme fell by nearly a quarter this year, the broker’s annual results released today show.
For the year ended 30 June, Hargreaves paid £4.2m in FSCS levies, down from £5.5m the previous year.
FSCS levies are calculated on the amount of business a firm does in each of the lifeboat fund’s funding classes, for example pensions or investment intermediation.
Hargreaves’ net revenue increased from £327m to £386m, while post-tax profits improved from £177m to £212m. Assets under administration grew 28 per cent to £79bn.
Hargreaves says that the FSCS bill “benefited from £1.3 million of rebate received this year relating to the previous year’s charge.”
The firm’s results also show it has amassed 14,550 Lifetime Isa clients since launching in April, half of who had not used Hargreaves before, with £36m now invested in the product.
The firm noted that marketing and distribution costs had risen 28 per cent, topping £14m, partly due to the Lifetime Isa’s launch, but also its new mobile app, and new funds HL Select UK Income Shares and CF Woodford Income Focus.
Total operating costs at the firm were up nearly £20m on the year to £126.7m.
Hargreaves chief executive Chris Hill says: “We have had a good year for gathering new clients and assets as a result of our relentless focus on the exceptional service we provide. Key to this has been understanding the needs of our clients and expanding our range of solutions and services to help them.
“There are considerable challenges for people in the current saving and investment environment but there are also opportunities, and Hargreaves Lansdown is ideally placed to help people make their investment decisions with confidence.”