Partially upheld: failure to provide ongoing review service; alleged failure to recommend tax-efficient strategy complaint against Hargreaves Lansdown Advisory Services Limited trading as Hargreaves Lansdown
Financial Ombudsman decision DRN-6308726 of 2026-06-05T00:00:00+00:00. failure to provide ongoing review service; alleged failure to recommend tax-efficient strategy complaint against Hargreaves Lansdown Advisory Services Limited trading as Hargreaves Lansdown. Outcome: Partially upheld.
Decision detail
| Reference | DRN-6308726 |
|---|---|
| Decision date | 2026-06-05T00:00:00+00:00 |
| Firm | Hargreaves Lansdown Advisory Services Limited trading as Hargreaves Lansdown |
| Product | Investment |
| Claim type | failure to provide ongoing review service; alleged failure to recommend tax-efficient strategy |
| Outcome | Partially upheld |
| Remedy | HL must repay the ongoing adviser fees paid in 2021, adjusted for growth as if the fees had remained invested, from the date paid to the date of final decision. Compensation should be paid into Mr L's bonds if possible, or directly to him if not. Payment must be made within 28 days, with 8% simple interest per annum if payment is late. HL must provide clear calculation details to Mr L. |
Summary
Mr L complained that Hargreaves Lansdown failed to advise him on the most tax-efficient investment strategy and failed to provide ongoing review services he had paid for. HL had recommended offshore investment bonds in 2006 when Mr L held non-domicile status, and Mr L later questioned why a strategy of withdrawing funds to invest in ISAs had not been recommended after he relinquished that status in 2009. The ombudsman found the offshore bond remained suitable throughout and that recommending ISAs earlier was not obligatory, though it may have been suitable. However, the ombudsman upheld the complaint regarding the 2021 annual review, which HL failed to attempt to deliver despite charging a fee. HL was ordered to refund the 2021 adviser fees with growth adjustment and interest.
The Ombudsman's reasoning
The ombudsman found that the offshore bond remained suitable throughout Mr L's ownership because it continued to meet his objectives of capital growth, inheritance planning, and tax efficiency, even after his non-domicile status changed. While recommending ISA withdrawals earlier may have been suitable advice, the absence of such a recommendation did not make the continued retention of the offshore bond unsuitable, as there were pros and cons to both solutions. However, HL failed to make reasonable attempts to deliver the annual review service in 2021 for which it charged Mr L a fee, constituting a breach of its service obligation.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Hargreaves Lansdown Advisory Services Limited trading as Hargreaves Lansdown, all decisions | 1 | 50% |
| Investment, all decisions | 13,970 | 35% |
Source
Read the original decision on the Financial Ombudsman Service website