Hargreaves Lansdown chief executive Chis Hill is set to step down, having presided over a significant period of growth for the company.

Hill initially joined the investment platform as its finance boss in 2016 after holding the same role at online trading provider IG and foreign exchange firm Travelex.

He was then promoted to the top position the following year and led it through the coronavirus pandemic when lockdowns produced a surge of first-time retail investors looking to make more cash on the side.

Lockdown surge: Almost one quarter of new clients added by investment platform Hargreaves Lansdown - or about 55,900 people - were younger than 30 during the year to the end of June

Lockdown surge: Almost one quarter of new clients added by investment platform Hargreaves Lansdown – or about 55,900 people – were younger than 30 during the year to the end of June

Business has slowed as restrictions have been relaxed, but its volume of assets under administration, customer numbers and revenues remain far above pre-Covid levels.

However, his tenure also saw the failure of the Woodford Equity Income Fund, which Hargreaves had heavily promoted before it collapsed three years ago, leaving tens of thousands of investors with significant losses.

Over the weekend, the Mail on Sunday revealed claims management firm RGL had filed a lawsuit against the FTSE 100 company in the high court, having already begun proceedings against Link Fund Solutions, the fund’s corporate director.

RGL alleges Hargreaves continued to promote Neil Woodford’s flagship fund right up until its trading was suspended, despite holding concerns about the fund’s exposure to illiquid investments. 

Hargreaves has yet to comment on the claim being submitted. Hill did apologise to customers personally affected by the scandal in 2019. 

The Bristol-based investment group said Hill would leave his post by November 2023 while the board searches for a replacement.

Its chair, Deanna Oppenheimer, said Hill ‘has successfully led the company through a period of significant change. He is leaving HL as a stronger company, with a clearly defined strategy that the board fully supports’.

Hargreaves  also published a trading update on Monday showing its revenue grew by 15 per cent year-on-year to £162.9million in the three months ending September, thanks to recent interest rate hikes.

This offset share dealing volumes falling from 861,000 per month to around 700,000 per month and the impact a drop in assets under administration had on revenues.

The number of active clients since June still grew by 17,000, prompted by a rise in people using self-invested personal pensions, ISAs and active savings accounts.

‘Although flows into risk-based investments remain subdued, both client and asset retention rates remain strong and in line with last year,’ Hill said in a statement. 

Following the strong performance, Hargreaves has lifted its full-year revenue and cash margin outlook, though its shares margin guidance has been downgraded.

Hargreaves Lansdown shares were 4 per cent lower at £7.80 during early Monday afternoon, meaning their value has declined by around 40 per cent since January.

This post first appeared on Dailymail.co.uk

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