FSA plans knock Hargreaves Lansdown shares

2nd Aug 2011 11:44

Shares in Hargreaves Lansdown fell sharply after the Financial Services Authority (FSA) published new rules on how financial services companies provide platform services to investors."We have concluded that all changes proposed in the FSA paper required by 31 December 2012 will require little work for Hargreaves Lansdown to implement and will result in no material impact on our business," the company said.However, shares in the company were down by 9% at 527.5p at 12.00pm.The FSA said it has "decided that it would be desirable, in principle, to ban payments by product providers to platforms and to ban cash rebates to consumers."However, it added: "we accept that there could be possible unintended consequences which might arise that are not yet fully understood. So, although this is our intention, we have not yet made rules to introduce a ban of either kind of payment."---RG