Chief urges advisers to shun performance fees

Peter Hargreaves, the chief executive of Hargreaves Lansdown, has attacked the use of performance fees and has urged advisers to boycott funds that use them.

Hargreaves, who steps down from his role later this year, says performance fees are only designed to benefit the manager and less than a dozen managers in Britain warrant them.

Hargreaves Lansdown has 14 funds with a performance fee within its influential Wealth 150 list of recommended funds. However, it says that it will be far stricter on adding and retaining those funds on the list.