Hargreaves Lansdown backs down over controversial new charge

But the maximum charge for self-invested pension accounts (Sipps) was much higher at £200 a year again for each type of holding, meaning some large investors would have paid £400.

But today the firm announced, alongside its half yearly results, that the proposed new charge for investment trusts will be scrapped. The broker said its plan had proved unpopular with a number of its customers.

Instead under the new pricing, which comes into effect in March, there will again be a single charge for investment trusts and shares of 0.45pc for Isa savers, which is capped at £45 per year. Therefore investors that want to hold both will avoid the potential double charge.

Ian Gorham, chief executive of Hargreaves Lansdown, said the new fee has been scrapped in response to client feedback.

“We have always listened to clients and designed our service around what they want. It is clear that this particular aspect of our pricing change has been disliked,” said Mr Gorham.

“I believe it is therefore the right thing to do to revert to a charging structure that clients are happy with. Clients who hold investment trusts through Hargreaves Lansdown will therefore be better off than previously proposed.”

Separately the firm announced its half year results which saw assets under management rise 43pc in the last year to £43bn.

The firm said it has increased its DIY investor numbers by 77,000 over the past six months to 584,000.

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