£2m bill for Hargreaves

group faces rap for not warning customers of changes to zero fund

Hargreaves Lansdown faces a £2m bill for failing to warn customers of changes to a portfolio of zero shares in the first FSA fine relating solely to split capital trusts. The FSA has fined the Bristol-based intermediary £300,000 for rule breaches concerning its Secure Growth Portfolio and the group will have to pay compensation to the 1,000 customers affected by the fund's losses, expected by the regulator to amount to £1.7m. Investors in the product, launched in 1992 as a low risk scheme, entered into a discretionary management agreement with the firm. But in 2001, Hargreaves introduced ...