Not upheld: failure to identify vulnerability and provide safeguarding against gambling; alleged irresponsible trading activity complaint against Hargreaves Lansdown Asset Management Limited (trading as Hargreaves Lansdown)

Decision detail

Summary

Mr L complained that Hargreaves Lansdown failed to provide appropriate safeguarding to prevent gambling with his investment accounts, resulting in losses exceeding £175,000. HL operated both accounts on an execution-only basis and contacted Mr L in late 2023 and early 2024 regarding high trading volumes, which triggered its Detrimental Trader policy. Mr L did not disclose gambling issues until August 2025, when he withdrew his remaining funds. The ombudsman found that HL was not required to identify gambling vulnerability based on trading patterns alone, as the activity did not appear extraordinary and did not meet HL's policy thresholds. Upon disclosure, HL took reasonable steps by referring Mr L to gambling support organisations. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that HL was not required to identify gambling vulnerability based solely on trading patterns. The trading activity, while high volume, did not appear extraordinary for someone trading non-complex instruments and did not trigger HL's Detrimental Trading policy thresholds. Critically, Mr L provided no communication to HL prior to August 2025 indicating gambling problems or affordability concerns. HL's execution-only basis meant Mr L was responsible for his own investment decisions. When Mr L disclosed gambling in August 2025, HL took reasonable steps by referring him to gambling support organisations. The ombudsman noted that HL's actions in questioning trading activity and the subsequent reduction in trading did not provide objective reason to suspect gambling vulnerability rather than simply high-volume trading.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website