Hargreaves shares fall as it reveals pricing details

Shares in Hargreaves Lansdown fell at the open this morning as investors digested news of the group's pricing overhaul which sees them charge clients a platform fee directly for the first time.

Earlier this morning the group announced its new tiered pricing structure for clients as it moves its business away from a rebate model following the Retail Distribution Review (RDR). With most clients now paying an AMC of 0.45% from April it makes the platform marginally more expensive than some competitors - depending on the pot size. Crucially, Hargreaves said the changes would equate to an initial revenue hit of £8m in the first year as lower client charges feed through, coupled with a £9m revenue reduction as a result of the 2016 sunset clause which will see all legacy trail comm...