Not upheld: investment account administration - corporate action explanation and website functionality complaint against Hargreaves Lansdown Asset Management Limited (HLAM)

Decision detail

Summary

Mr P complained to HLAM about a corporate action entry (equalisation adjustment) recorded on an accumulation fund holding, which he believed should not apply to accumulation funds and which reduced his cost basis without any payment to him. He also complained about being logged out of HLAM's website without warning while composing a secure message. HLAM explained that equalisation payments apply to both accumulation and income funds, adjust the cost basis appropriately for tax purposes, and offered £25 compensation for the website inconvenience. The ombudsman found HLAM's explanation accurate and the compensation fair, rejecting Mr P's complaint.

The Ombudsman's reasoning

The ombudsman found that equalisation payments can apply to both accumulation and income funds, contrary to Mr P's understanding. Where part of the purchase price represents dividend income accrued before distribution, it is appropriate for the fund to make an accounting adjustment to reflect the true cost basis for capital gains tax purposes. HLAM's explanation of 12 August 2025 provided sufficient detail for Mr P to submit an accurate tax return. The £25 compensation for the website timeout issue was fair and reasonable, and the suggestion to compose messages in Word prior to logging in was a reasonable workaround.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website