In the event there were a successful private equity bid for HL, who would leave the platform?

artyboy

poseidon1 said:

https://www.cityam.com/hargreaves-lansdown-willing-to-recommend-new-5-4bn-cvc-led-takeover-to-shareholders/

Seems Peter Hargreaves is prepared to back this private equity bid for HL.

The paucity of responses to the question raised in my original post suggests either lack of awareness of the implications of HL going private, or apathy of the wider consequences of the so called champion of DIY investing, packaging its  clients as an exclusive profit centre for the very rich to the detriment of the FTSE.

This has given me the kick I needed to move all my remaining HL  business to Interactive Investors and hope Abrd will not feel similarly inclined at some point to put their platform on the auction block.

Well you do what you feel is best, but it's hardly like they were some member owned cooperative or mutual. I'm with them because their fees are low (for ETFs) and because they paid me and Mrs Arty a shedload of money to transfer in. 

Maybe that sounds opportunistic, but this is a financial transaction, not a love-in (or a wake, as you possibly see it...). There are enough players in this market, including relatively new entrants, that I'm not wringing my hands at the prospect of less meaningful competition and a broader fees hike...

m_c_s

Just need to watch out for increase in fees after the takeover especially ongoing and transaction fees which the financial industry will always try to use to maximise profits and milk you dry.
HL can be quite a relatively cheap platform if you hold ETFs (also shares, investment trusts, gilts and bonds) in your SIPP or ISA. Other platforms are cheaper but HL seem to have attracted a loyal customer base which means they can keep other fees high.
Just try to avoid their high 0.45% holding fee when using funds (this is akin to an IFA or FA charging 0.5% pa ongoing charge) and will eat into your pot significantly over many years. Also their own funds have high charges and these will likely drag down the performance of your portfolio.

Hoenir

poseidon1 said:

Seems Peter Hargreaves is prepared to back this private equity bid for HL.

Selling his holding into the market is a non starter given the anti UK investment stance of many investors. Not they've any real understanding of why they've a bias at all. 

Rich1976

So generally is this bad news for HL customers ? We have both our sipps with them and have for a number of years and have been really happy with the service and user experience but haven’t seen anywhere yet where the implications of a foreign take over have been explained .

SouthCoastBoy

I have considered moving in the past, due to the relatively high fees, however have stuck with them as have always received excellent customer service.

If they did get sold I would definitely consider my options. I think interactive investor or AJ Bell are the platforms I would consider.

I imagine it would take a while for the deal to go through, so may just jump ship during that time.

m_c_s

A lot depends on what the private equity consortium wants to do with HL. The FT published a non paywall article recently saying HL has been struggling with costs and customer growth has stalled. Cost cutting seems to be on the cards so this could be bad news for its staff but it is really unclear what this means for us account holders. Perhaps customer service could be impacted with this. It seems Peter Hargreaves, who has been heavily critical of past management (last 5 or so yrs), is reasonably happy with what the consortium is offering both in terms of price and their future plans for the business.

Beddie

Rich1976 said:

So generally is this bad news for HL customers ? We have both our sipps with them and have for a number of years and have been really happy with the service and user experience but haven’t seen anywhere yet where the implications of a foreign take over have been explained .

It's not necessarily good or bad news. It's very likely that there will be no significant changes once the takeover is complete, at least for a while.

I very much doubt they will raise charges, as they are already at the higher end and would just lose customers.
They are more likely to cut service levels, but as long as it's still at an acceptable level most will stay.
I have a SIPP with them and would certainly not move based solely on a takeover. A "wait and see" approach would be the most sensible, in my opinion.

Linton

Would it not be more sensible to wait until you experience an unacceptable downturn in customer service before jumping. I may be wrong but was not private equity involved in moving ii from its founders before the Abrd takeover?

aldershot

I've been a HL customer for nearly 15 years. Their service has generally been exceptional. The website works, the app works, the call centre know what they are doing. 
I hope nothing changes but making preemptive moves in case it does does seem rather rash. Things may change in the future and any customer can make a decision at a later date should the service deteriorate to an unacceptable level, given their premium costs. There is no lock in.  

SouthCoastBoy

The one concern I have about staying is if customer service deteriorates or fees go up there could be a rush for the door, and things take longer. As I was already 50:50 on staying maybe this is the impetuous to actually make the move