EVOLVING

DELIVERING

Report and Financial Statements 2024

Additional Chair’s Letter

As announced on 9 August 2024, the

Consortium

has made a firm and final

offer

for the Company (Offer), with the independent

Board

of the Company has stated its

intention to unanimously recommend the

cash offer to shareholders. Pursuant to the

Offer, each shareholder will be entitled to

receive 1,140 pence per share, comprised of

cash consideration of 1,110 pence per share

and a dividend of 30 pence per share in

respect of the financial year ended 30 June

2024. The Offer is subject to shareholder

and other regulatory approvals.

It is intended that the acquisition will be

implemented by way of a Court-sanctioned

scheme of arrangement under Part 26 of the

Companies Act and is expected to complete

in the first quarter of 2025.

As stated in the announcement regarding

the Offer, the Independent Board notes the

Consortium’s history of investing in UK and

European financial services businesses,

including wealth management, and the

expertise they bring to help develop Harp’s

client proposition. The Board believes that

this expertise has the potential to enable

an accelerated transformation aligned with

Harp’s strategy to transform the investing

experience and create the best savings and

investment platform for its clients. Should the

Offer complete, Harp’s management would

work alongside the Consortium on the strategic

direction of the Group and execution of the

associated strategy.

This Annual Report and Accounts (ARA) was

prepared during the period that the Offer was

under discussion. As the ARA predominantly

provides a review of the prior year, the

statements made in the ARA and the updates

on performance to the date of publication

remain unchanged.

However, I would like to draw your attention

to the statements below, which, in connection

with the Offer, add to or clarify certain

statements made in the ARA.

In respect of the forward looking position

regarding the Company’s strategy, deliverables

and future performance, the Board remains

supportive of the statements made but notes

that these may be subject to change in the

future, following completion of the Offer.

As a result, all statements in the ARA should

be read in this context.

Specifically, in respect of:

Viability statement and going concern: We

have included an updated Viability Statement

within the ARA to reflect the Offer.

The Offer is subject to shareholder and

other regulatory approvals. As a result the

Directors do not have certainty on the future

plans for the business, including whether

the Offer will be approved by shareholders

and gain regulatory approval, the potential

timing for transfer to the potential new

owners or full knowledge of their future

plans for the business; including any

financing arrangements.

These conditions indicate the existence of a

material uncertainty which may cast significant

doubt about the Group’s ability to continue as a

going concern. The Group financial information

does not include the adjustments that would

result if the Group and the Company were no

longer considered to be or able to continue

as a going concern. Notwithstanding this

uncertainty, the Directors are satisfied that

the going concern basis remains appropriate

for the preparation of the financial information

contained in the ARA. As further set out in

the Viability Statement, notwithstanding the

uncertainty described above having assessed

the Group’s risks, existing facilities and

performance, the Directors have concluded

that the Group expectation is to remain viable

over the Viability Period to June 2027.

Financial statements (Revolving Credit

Facility (RCF)): the Company’s RCF contains

a statement that it will fall away on a change

of control. The RCF is undrawn and was put in

place to further strengthen the Group’s liquidity

position and increase cash management

flexibility. This is further discussed in the

Viability Statement.

Governance Report (stakeholder

engagement): in considering the Offer, the

Board considered the potential impact on the

Group’s broader stakeholders, including our

colleagues, shareholders, clients, suppliers and

regulator. In particular, the Board considered

the expectations of stakeholders for the

Company over the short, medium and long

term and undertook a review of the Offer

with its advisers, including on the basis of

valuation advice from its financial advisers.

The Board considered the Company’s brand

and reputation as well as the Consortium’s

intentions post acquisition and the potential

impact of them on stakeholders.

Governance Report (delisting of shares):

Your attention is also drawn to the fact

that should the transaction complete,

the Consortium has indicated that it will

seek to delist the Company’s shares from

trading on the London Stock Exchange.

Directors remuneration report (Remuneration

in FY25): recognising the provisions of the

Offer, should the transaction complete as

intended, rewards and incentives will likely

be reviewed. If for any reason the Offer does

not proceed, the current remuneration policy

and awards made will continue. Given the

timing of any transaction completing, the

Board will make awards for FY25 under its

current share plans and in accordance with

its Remuneration Policy.

I would like to take this opportunity to

particularly thank my fellow Board members

for their commitment during this time to ensure

that we are continuing to meet high standards

of corporate governance and ensuring that

the interests of our stakeholders have been

and will continue to be considered as part of

this process. I would additionally like to further

thank colleagues who have continued to focus

on our clients and delivering good outcomes

for them during this period.

Chair

Alison Platt

1 A newly formed company to be indirectly owned by CVC

Private Equity Funds, Nordic Capital XI Delta, SCSp (acting

through its general partner, Nordic Capital XI Delta GP SARL)

and Platinum Ivy B 2018 RSC Limited

2 The financial terms of the Offer are final and will not be

increased or improved, except that BidCo reserves the right to

increase and improve the financial terms of the Offer if there

is an announcement of an offer or a possible offer for HL by a

third-party offeror or potential offeror.

3 Comprising Hargreaves Lansdown’s full Board excluding Peter

Hargreaves’ shareholder representative, Adrian Collins, who is

a non-independent non-executive director.

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

CONTENTS

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information

Directors, company secretary,

advisers and shareholder information 174

Five-year summary 175

Glossary of alternative financial

performance measures 176

Glossary of terms 179

Hargreaves Lansdown

Report and Financial Statements 2024 1

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

WE ARE

HARGREAVES

LANSDOWN.

AT A GLANCE

HL is the largest savings and investment

platform in the UK.

For over 40 years, we have helped clients

improve their financial futures and our purpose

is making it easy to save and invest for a

better future. We do this through our easy-to-

use platform and broad proposition supporting

clients’ financial needs across their lifetime.

Today we are trusted by more than

1.88 million clients and their £155.3bn

savings and investments.

Making it

easy to save

and invest for

a better future

£155.3bn

AUA

1.88m

clients

91.4%

client retention

14,000+

investment options

43.2p

dividend 2024

£396.3m

statutory PBT

Hargreaves Lansdown

Report and Financial Statements 2024 2

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

MARKET OPPORTUNITY

Growth in the UK pension market is a key driver

of overall market growth, as the responsibility for

retirement continues to shift from the State and

employers to individuals.

Our addressable pension market is worth around

£1.5 trillion today but is expected to grow to

around £1.9 trillion by 2027. Successive pension

policies from Pension Freedoms in 2015 to the

launch of Pension Dashboards in 2026 continue

to shift the dial, giving the UK new-found

flexibility and transparency over their retirement

savings, both personal and workplace.

As client preferences continue to shift to being

able to manage their money digitally, the UK

direct-to-consumer (D2C) platform market,

currently worth around £365.5 billion, continues

to attract an increasing share of client assets.

The D2C platform market is expected to grow

at around 10% per year to 2027, underpinned by

a few key factors we cover on the next page.

The UK savings market continues to grow, driven

by the sustained attractiveness of cash as an

asset class. D2C cash platforms account for

around £50 billion of a £2 trillion market and are

well placed to attract clients thanks to a better

client experience and often rates.

HL looks after over £155.3

billion of clients’ savings and

investments but our addressable

market in the UK is worth around

£3.4 trillion today and expected

to grow to £3.7 trillion by 2026.

1. BCG addressable market estimated at £3.4tn in 2024 growing

at +4.3% CAGR

2. UK Platform AUA as at March 2024, Platforum, UK D2C:

Market Update, July 2024

3. Estimate for cash platform market sizing includes savings

attracted by Flagstone, HL, Raisin, Moneybox, Monzo, Insignis.

~£3.7tn

addressable

market in 2026

£3.4tn

addressable

market today

~£50bn

cash platforms

£155.3bn

HL Total AUA

£365.5bn

D2C platforms

£1.5tn

addressable pension

market today

OPERATING INALARGE

AND GROWING MARKET

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

EVOLVING CLIENT NEEDS AND MARKET DYNAMICS

Not enough people

saving or investing

Just 13% of UK households have an

adequate pension for a comfortable

retirement yet over 12.1 million

households have enough to start

investing for the future, but they just

aren’t. A significant opportunity exists

for the UK to improve its financial

resilience, just by making it easier

to save and invest.

Products designed

for good client outcomes

We know clients’ are daunted by

saving and investing and that stands

in the way of financial resilience.

That’s why building client’s confidence

to save and invest, making it easy

to do so and giving them a broad

choice so they can do everything

on one platform, is at the heart of

our value proposition.

Competitors

The UK retail saving and investing

space is seeing both new entrants

and existing platforms launching

disruptive offerings, spanning new

products to alternative revenue

models. Despite competitive

pressures, opportunity for a simple,

trusted platform offering the breadth

of products and services needed to

look after clients across their lifetime.

Ageing

population

Over 10 million people (nearly 20%

of the UK population) are now over

65, up by around 50% from over 40

years ago. The result is a growing

savings gap versus the level of

funding needed for a comfortable

retirement. Individuals need bigger

retirement pots, at the same time

state and company pension provision

is becoming less generous.

Best of human

and digital expertise

Clients want a great digital experience

as well as the option to speak to

knowledgeable and reassuring HL

colleagues for the moments that

matter. For some, this may be help

getting started while for others it

might be reaching retirement and

moving into Drawdown.

Consumer Duty

The FCA has a renewed focus on

ensuring firms make it easy for

clients to achieve good outcomes.

The Consumer Duty rules were

implemented in 2023 and require

companies to evidence and attest

they are delivering good client

outcomes every year. Good client

outcomes have always been key

principles for HL, so we are well

positioned for this new era.

Work and retirement

patterns changing

Retirement is becoming an

increasingly fluid concept. Fewer

individuals are working for and retiring

with the same company and many are

continuing to work after retirement

age. The result is a more complex

retirement picture, with multiple

pension pots in different places and

a more complex level of financial

planning needed.

Proactive and

personalised experience

Clients expect high quality digital

journeys and a personalised

experience. Market insights,

investment opportunities and

guidance on how to improve their

outcomes, need to be tailored to

the client’s personal circumstances,

aligned with their investment goals.

Advice/Guidance boundary

The current review of the Advice/

Guidance boundary would allow

firms to provide more relevant

financial information to consumers,

democratising access to support.

It offers the potential for us to

proactively engage with our client

base, ensuring people’s saving

and investing behaviours and

goals are aligned.

Responsible

investing

Making responsible investing easy

is quickly becoming non-negotiable

for UK platforms, underpinned by

key regulations such as Consumer

Duty, Task Force on Climate-

related Financial Disclosures

and Sustainability Disclosure

Requirements. HL’s responsible

investment AUA has risen 43%

in the last three years.

Broad investment

choice under one roof

Across a client’s lifetime and as their

financial needs change, building

financial resilience requires accessing

a range of investments and accounts.

From pensions to workplace pensions,

savings and investments, clients are

increasingly interested in building a

diversified portfolio under one roof.

Technology

Ultimately, it’s technology that

will enable platforms to provide a

more personalised experience and

improve client outcomes efficiently.

Together, cloud computing and

artificial intelligence allows us

to analyse client behaviours and

improve client outcomes over

time through a personalised

and proactive experience.

MARKET OPPORTUNITY

CONTINUED

Evolving needs

Structural

market trends

Competitive

and regulatory

dynamics

Hargreaves Lansdown

Report and Financial Statements 2024 4

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

BUSINESS MODEL

A PARTNER

FOR LIFE

Our proposition

We support clients’ financial needs throughout

their life, building long-term relationships,

driving growth and sustainable returns for

our stakeholders.

HL’s award-winning digital platform gives

clients access to a broad range of savings

and investment solutions and products to

manage their finances and facilitate their

investment goals.

Retirement

We offer a range of solutions to help people

prepare for later life and retirement. Our

proposition includes a Ready-Made Pension

Plan plus Self Invested Personal Pensions

(SIPPs), Junior SIPP, Income Drawdown and

Annuities. These are supported by a range of

retirement planning tools to make it easy for

people to check if they are on the right track

to achieve their retirement objectives.

Investments

HL’s proposition offers clients significant choice

and flexibility in managing their investments.

Our products include the Stocks & Shares

ISA, Lifetime ISA (LISA), Junior ISA (JISA) and

General Investment Account (GIA). The range

of solutions means clients can invest in line

with their needs across different life stages.

We leverage our scale to deliver great value to

our clients, for example, we achieve an average

17% discount across our top 100 funds.

Active Savings

Our cash management platform gives access

to highly competitive savings rates and allows

clients to easily spread cash savings across

multiple providers, maturities and accounts,

including Cash ISA and the UK’s first multi-

bank Cash ISA. Active Savings is an important

service to both new and existing clients, now

holding more than £10 billion of assets.

Trading

HL is the UK’s biggest retail stockbroker –

accounting for 34% of all UK trades and 56% of

overseas trades. HL clients can trade through

our app, website or by phone, and we focus on

delivering best execution across a wide range

of investments in the UK and abroad. Our scale

enables us to improve the price per share trade

clients receive by an average of £16 versus the

spot price. Clients have access to an evolving

proposition including automated trades,

monthly investing, live prices, a digital voting

tool, and equity and gilt primary capital raises.

HL Funds

Our focus is on ready-made solutions to

provide simple solutions for low/mid confidence

investors, including a Ready-Made Pension

plan, a Ready-Made active range and a

Ready-Made index range to cover different risk

profiles. Additionally, we provide investment

solutions for clients across a broad range

of sectors and investment needs to capture

specific market opportunities. We manage

over £10 billion of assets.

Powers our distribution engine

Through the channel of their choice, clients can

access a range of products and services that

support them in achieving their financial goals.

Our channels:

• Direct-to-consumer (D2C): easy-to-use

tools and expert-led content available

through our app, website and other

channels including webinars, to help clients

make the right investment decision for them

and access market opportunities.

• Helpdesk: clients can speak to an HL

colleague for assistance and guidance

on any service or product.

• Advice: dedicated financial advisers

supporting clients to build a full financial

plan to address specific goals across various

life stages.

• Workplace: Workplace Solutions offers

a variety of services adjacent to its core

pension proposition (e.g. third-party

retirement service and flexible benefits

platform) addressing corporate client’s

evolving protection and saving needs.

OUR PROPOSITION POWERS OUR DISTRIBUTION ENGINE

Hargreaves Lansdown

Report and Financial Statements 2024 5

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

BUSINESS MODEL

CONTINUED

We have proven that giving people confidence

by providing relevant, timely and digestible

investment information and then making it easy

to act helps our clients invest and get positive

outcomes. The happier and more engaged

clients are, the greater the new business

flows through transfers of investments held

elsewhere, new lump sum contributions and

regular savings, particularly when it comes to

using tax allowances within a SIPP and an ISA.

Retain

We have a loyal client base with a retention rate

of 91.4%. We build lifelong relationships with

clients as they build their wealth, becoming

their trusted financial partner.

This underpins our ongoing revenue

generation, along with the positive impact

of compound growth.

We focus on delighting our clients every

day and we’ve always set out to offer clients

a saving and investing experience they can’t

get elsewhere, supported by our trusted voice

in the market and multi-channel digital and

human offering.

Driving strong growth

By attracting, engaging and retaining clients,

we grow our AUA which helps drive revenue

growth. Consistent revenue growth allows

us to continually reinvest in the client value

proposition, making us more appealing and

competitive, while allowing us to build a more

efficient and scalable platform. This is the

fundamental flywheel of our company.

Total AUA:

£155.3bn

(2023: £134.0bn)

Total active clients:

1.88m

(2023: 1.80m)

Detail on how we have

addressed these stakeholders

in our strategy is on page 22

A PARTNER

FOR LIFE

Attract

Our trusted brand, broad proposition and

client-focused service enables us to attract

and build lifelong relationships with clients.

We continuously evolve our approach to client

acquisition, investing in our digital experience,

service, product proposition and marketing to

ensure we maintain and improve our offering

and we make it easy for our clients to save

and invest for a better future. During 2024

we acquired 78,000 net new clients.

Engage

A key priority for us is helping people engage

with their financial security by making investing

understandable, simple and accessible for

everyone. With 1.88 million retail clients we

have great insight into the needs of the UK

retail investor. This insight allows us to focus

our investment and resources on what matters

to them. We continuously look for ways to

deliver more value to clients and become

an increasingly important part of their daily

financial lives.

Creating value

Sustainable returns

We generate revenues based on the value of

assets administered on our platform, activity

levels of our clients, net interest margin

on uninvested cash, and advice given to

clients. Of these revenue streams, 81% are

ongoing in nature, providing a high degree

of profit resilience.

We always strive to be a fitter and leaner

business. A strong focus on cost discipline

allows us to create capacity for us to invest

in our clients through our proposition and

platform, and in turn generate stronger

returns for shareholders.

Our scalable growth, diversified

revenue streams and cost discipline

underpin sustainable profits. After ensuring

we maintain a surplus of capital over and

above our regulatory requirement, our capital

management framework sets out our approach

to delivering sustainable and attractive

shareholder returns over time.

Sustainable returns are not only a function of

what we do, but how we do it. Environmental,

Social and Governance factors are embedded

throughout our operations and investments to

ensure we manage our business for the long

term. This is key for building trust in our brand,

products and services, and helping our clients

reach great outcomes across their lifetime.

DRIVING STRONG GROWTH CREATING VALUE

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

A REFRESHED STRATEGY FOR

THE NEXT PHASE OFGROWTH

STRATEGIC SUMMARY

WHAT CLIENTS WANT

WHAT WE’RE DOING ABOUT IT

Give me great value A platform I can trust Make it easy

Transforming the

investing experience

Making saving and investing understandable, simple

and accessible for all is the foundation on which

Peter Hargreaves and Stephen Lansdown started the

company over 40 years ago. It’s what continues to

drive HL today.

Great people, great culture

HL has great people and a strong client focused culture.

Our focus is on unleashing the potential of our people

to power the next phase of HL’s growth.

Combining the best of

colleague and digital capability

We will always offer clients a great digital

experience while having knowledgeable

colleagues available to provide guidance

and reassurance via web, app, our Helpdesk

or Financial Advisers.

Responsible and resilient business

We want to make it easy for everyone to save and invest for

their future. As a Responsible Business, Investment Platform

and Fund Manager, we drive positive, long-term change

at a local and national level.

Leveraging our scale

to drive client value

Leveraging our scale is the renewed focus of

our strategy. Driving efficiencies in everything

we do, enables us to continuously improve

our client value proposition.

Hargreaves Lansdown

Report and Financial Statements 2024 7

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic reportStrategic report

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

STRATEGIC SUMMARY

CONTINUED

MAKE IT

EASY

TRANSFORMING

THE INVESTING EXPERIENCE

Best Buy

Pension

Boring Money

Awards 2021–2024

Best Online

Stockbroker

Personal Finance

Awards 2024

UK’s first ever

multi-bank Cash ISA

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

STRATEGIC SUMMARY

CONTINUED

A PLATFORM

I CAN TRUST

COMBINING

THE BEST OF COLLEAGUE

AND DIGITAL CAPABILITY

60%

calls answered

in under

20 seconds

rated investment

platform for Trust

3.6m

average

weekly logins

app & web

1 #1 Classic Platforms, Boring Money H2 2023.

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic reportStrategic report

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

STRATEGIC SUMMARY

CONTINUED

DELIVERING

VALUE

OUR SCALE TO DRIVE CLIENT VALUE

17%

average

discount, top

100 funds

£51m

total fund

discounts

£16

average price

improvement

per trade

LEVERAGING

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

OUR VALUES:

HOWWE SHOW UP

We understand the important

role we have to play in building

a better financial future for both

our clients and wider society.

Our culture, values and governance ensure

our clients are at the heart of our business

and that we work in a sustainable and

responsible way.

STRATEGIC SUMMARY

CONTINUED

ONE

CONNECTED

TEAM

We are one team and it shows.

We work together to drive the

business forwards and help client’s

to improve their financial futures.

CLIENT

FIRST

We want our clients to achieve

great outcomes – it drives our

decision making.

SHOW

COURAGE

We’re boldly ambitious, but

never reckless or arrogant. We

have difficult conversations. We

love a challenge. We always act

with integrity.

ALWAYS

CURIOUS

We see potential everywhere. We

know what we’re doing but know

we can always do better. We keep

learning, so we can keep educating.

CARE

DEEPLY

Everyone at HL genuinely cares.

We support each other to deliver

an outstanding experience for

clients and an inclusive culture

for our colleagues.

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

We operate in a large and growing market

addressing a clear client need, with both

government and regulatory backing to

get more people in the UK investing for

their future.

HL is well positioned to support and drive

this as the UK’s largest D2C investment

platform, building on a 40-year heritage

of delivering for our clients in the market

we created.

With a £3.7 trillion addressable market

of savings, investments and pensions,

we are well placed to capture this growth,

providing a single home for all saving

and investment needs.

We help people build a financially

secure future by making investing simple,

understandable and accessible for all.

HL’s differentiated client proposition

caters for every life stage, underpinned

by a diverse and evolving product offering

and premium client service.

We’ve built a diverse and loyal client

base across both age and portfolio

size, demonstrating HL’s ability to attract

and support clients across the UK in

building wealth over time.

Our scale and heritage in the market

means we are well placed to improve our

proposition and deliver increasing value

to clients.

Thanks to a 40-year history and now

millions of daily client interactions with

our platform, we have a unique level of

insight into the UK retail investment

industry and opportunity to drive

innovation. This year we launched the

UK’s first multi-bank Cash ISA.

Our scale also enables us to offer

greater value to HL clients, through

discounted fund management fees and

price improvement in trading (versus the

best primary exchange price).

HL is a stable and growing business,

with 81% revenues recurring. Our business

model is diversified and means we

perform across different market cycles.

We are highly cash generative, have

a strong balance sheet and retain a

significant surplus of capital over and

above our regulatory requirement.

We have paid an increasing ordinary

dividend for the last nine years.

Our strategic investment programme is

underway and already delivering positive

results. A strengthened leadership team,

with clear go-forward plans, will increase

the pace we achieve our strategic

ambitions and return HL to a business

delivering attractive growth for

shareholders and wider stakeholders.

WHY HL?

OUR INVESTMENT CASE

STRATEGIC SUMMARY

CONTINUED

LARGE AND

GROWING MARKET

TRUSTED BUSINESS

FOCUSED ONIMPROVING

CLIENTS' FUTURES

LEVERAGING SCALE

TO DRIVE VALUE

FOR OUR CLIENTS

DELIVERING

LONG-TERM AND

SUSTAINABLE GROWTH

£396.3m

profit before tax 2024

43.2p

dividend 2024

£155.3bn

AUA

236m

digital visits

1.88m

clients

91.4%

client retention rate

£3.7tn

addressable market by 2026

38%

working-age people (12.5m)

are under-saving for retirement

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

CORPORATE

RESPONSIBILITY

UNDERPINS

OURPURPOSE

Ensuring our brand lives up to the

expectation of all our stakeholders.

It is an absolute privilege

tolead the board of such

aniconic British business.

Alison Platt

Chair

Dear shareholder

I am delighted to present my first Report

and Financial Statements as your new

Chair following my appointment to the

role in February.

It is an absolute privilege to lead the Board of

such an iconic British business. It’s testament

to the resilience of the Hargreaves Lansdown

brand that despite the challenges of recent

years client numbers remain by far the largest

in the sector with client retention levels

at 91.4%.

I have spent much of my early tenure listening

and learning, starting inside the business in

Bristol listening to calls, working alongside

client supporting colleagues and listening to

managers and front line teams involved in

everything from tech, to change management

to compliance. It is striking that, unprompted,

so many clients cite Hargreaves Lansdown’s

service – whether digital or human – as core to

their decision to stay, or indeed, where we get

it wrong, leave. It’s heartening therefore that

on his arrival, Dan Olley and the team made

service levels the number one priority for the

business. The performance and results at the

tax year end showed what a terrific difference

that made and the pride of our people in

delivering a record outcome for clients

is thoroughly well deserved.

The first few months have also been marked

by my working with Board colleagues to

define our role beyond the obvious and critical

governance accountabilities. As Dan leads

CHAIR’S INTRODUCTION

the business to get Hargreaves Lansdown

growing and delivering at pace again, the

board must play its part in bringing support

and challenge and acting as ambassadors for

the ambitious agenda that lies ahead. This

approach has meant we’ve spent considerable

and valuable time working with Dan and Amy

to get underneath the plans and ensure the

collective experience of the Board is tapped

as we prioritise and focus on execution.

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

Culture, purpose and

stakeholder engagement

Corporate Responsibility underpins our

purpose, to help people save and invest for

a better future. During the year the Board has

focused on ensuring we have a strong and

healthy culture embedded across our business

so that we can deliver positive results not only

for our clients but also for our colleagues, the

environment, our community and shareholders.

Whilst the key elements of the HL Way have

remained, we have updated our client focused

values through a process of consulting with our

colleagues to ensure that we are all one team

with a common purpose and set of goals.

We have been updating our Corporate

Responsibility strategy ensuring our approach

is focused through our actions as a responsible

Platform, Fund Manager, Business and

Employer. Our strategy, progress and ambitions

are set out on pages 31 to 42. I am really

pleased to see that we have made further

progress in our climate reporting, our push for

greater financial resilience both at a society

and local community level, and our diversity

and inclusion metrics.

As well as engaging and hearing lots of

feedback from our clients and colleagues I have

been keen to spend time with our shareholders

and hear their views first hand. Understanding

the views and interests across our stakeholder

groups helps the Board to make better

decisions with the aim of generating long-

term value for the Company’s shareholders

whilst contributing to wider society by building

strong and lasting relationships with other

key stakeholders.

Regulation and Board changes

Front of mind for the Board is ensuring that

our brand lives up to expectation for all our

stakeholders. Regulatory reputation matters

and I’m grateful to both Andrea Blance as Risk

Committee Chair and Darren Pope as Audit

Committee Chair for the huge amount of

work they have done in building a robust and

credible plan with the HL teams to tackle our

regulatory agenda. Along with the whole of the

financial services sector we have been working

hard to embrace the FCA’s Consumer Duty

requirements. As required by the regulator,

Penny James, our Senior Independent Director,

has taken on the role of lead director for this

work. In a demonstration of the importance we

place on this agenda the Board has established

a working sub-committee including myself

and Dan Olley to ensure the actions are

integral to our operating plans and progress

and performance against targets visible to

the Board.

It is crucial that the Board has the necessary

capabilities and attitude to play its part in

delivering performance that leads to enhanced

shareholder returns. With the transition of Dan

to the CEO role we have commenced a search

for a new Non-Executive Director with the

focus being on global technology skills. At the

time of writing the search remains ongoing.

The role played by all Board colleagues is

key and I believe the make-up of the board

now reflects the critical areas of performance

and strategy to HL. In June we commenced

the external Board evaluation led by the

consultancy Independent Board Evaluation.

Whilst required by the Corporate Governance

Code, the timing is excellent as we seek to

It has been a busy and engaging year and

I am grateful to colleagues and investors

alike for the time they’ve given me and for

the honest and straightforward feedback

I’ve received. As I said in my opening, this

is an iconic British brand, looking after over

1.88 million clients in a world where financial

security has never been more important.

Leading the Board to bring bravery, humility

and hard work to the collective effort will

be my goal as Dan capitalises on the strong

momentum already evident.

Alison Platt

Chair

14 August 2024

CHAIR’S INTRODUCTION

CONTINUED

ensure this Board performs to its very best

individually and collectively. I look forward to

absorbing and acting upon their observations.

Dividend

In line with our communications last year, the

Board is pleased to recommend a final ordinary

dividend of 30.0p per share representing an

increase of 4% on last year. The final ordinary

dividend will be paid on 1 November 2024 to

all shareholders on the register at the close

of business on 4 October 2024, subject to

approval at our AGM on 22 October 2024.

This brings the total ordinary dividend for the

financial year to 43.2p per share, representing

an increase of 4% on last year.

Looking ahead

Looking forward the Board firmly believes

that we are very well positioned to capitalise

on a growing sector and a recovering market.

Getting back to some of the founding principles

of this business, being a champion for the

retail investor and making it easy for people to

save and invest for a better future is key and

building on the unique assets the business

has built over the last 40 years gives us an

exceptional base. There is much work to do to

excel in this highly competitive market and the

Board believes that in Dan Olley we have a CEO

whose background and capabilities make

him ideal for the task. Delivering the plan will

require a total team effort and the capabilities

and experience which lie inside the Bristol

business are being utilised to the maximum and

enhanced by some newly recruited colleagues

who bring specific expertise in areas such as

data, digital and change management.

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

MAKING IT EASY

TO SAVE AND INVEST

I’m pleased to see our strategy

and focus on our priorities beginning

to deliver results.

With the momentum we are

building I’m very positive about

the future for HL, but even more

positive about the impact we can

have on people across the UK.

Dan Olley

Chief Executive Officer

Overview

It has been an eventful first 12 months in

role, not least with the approach from the

consortium which has resulted in a firm and

final offer for HL, with the Independent Board

intending to unanimously recommend the cash

offer to shareholders. The offer is expected

to complete in Q1 2025 subject to certain

conditions, including shareholder and other

regulatory approvals.

For more details of the offer, please see the

Additional Chair’s letter from Alison at the very

front of this report.

Additional At HL, we have been helping

people to save and invest for a better future

for over 40 years. This year our focus has

been on getting back to basics: continually

striving for great client service, providing a

great client experience and great client value.

That means putting our clients at the heart of

the organisation and serving them well, with

the humility, expertise and passion that makes

HL the company it is. We need to help more

people across the UK save and invest to secure

their future, so this is more than a mission,

it’s an obligation and our sole focus.

When I joined the business as CEO in August

2023, it was clear that HL is a great business

with a passion for serving its clients, but

we had work to do in areas to serve our

clients better. For example, it was clear our

client service in H2 2023 had fallen below

the level we and our clients expect and that

our website and app functionality could be

significantly improved.

Based on these initial observations, I laid out

four clear priorities (Delight clients, Increase

pace, Save to invest and Focus on Our People)

to align the organisation and increase the pace

of execution, whilst undertaking a thorough

CHIEF EXECUTIVE’S REVIEW

business wide review. The output of this

review, coupled with our analysis of client

needs, has enabled us to evolve the strategy

and create clear financial and operating plans

to achieve our objectives.

I am pleased with the progress we have

made against these initial four priorities, and

importantly these changes are starting to have

a positive impact on our clients, for example

the significant improvements in Client Service

the teams delivered through Tax Year End

in March and April of this year.

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

We’ve made solid progress

but there is much more to do

to deliver on our ambition to

constantly delight our clients

into the future, and accelerate

our growth.

Dan Olley

Chief Executive Officer

The combination of great value, great service,

relevant research and a broad proposition helped

us welcome another net 78,000 active clients to

the platform, taking assets under administration

(AuA) to £155.3 billion and underlining HL’s

position as the UK’s largest and most trusted

Investment Platform. Our Net New Business

(NNB) for FY24 was £4.2bn, with a stronger

performance in the second half. This has

delivered revenue of £764.9m up 4% vs. FY23.

Our increased focus on cost discipline across the

organisation through the year has allowed us to

slow cost growth, especially in H2, delivering an

underlying profit of £456m, again up 4% YoY.

I would like to thank every HL colleague

for helping deliver this year’s improved

performance and for embracing the changes

we are making to make HL an even stronger

organisation. Guided by our purpose to “make

it easy to save and invest for a better future”,

I am proud of what we have achieved together

and excited about the road ahead.

Getting back to basics,

led by our clients

In September 2023, I set out four immediate

priorities to increase momentum across the

organisation while we commenced a more

comprehensive business-wide review. I am

pleased to see the progress that has been

made and the early positive impact this is

having for both our clients and our results.

Delighting Clients, Drive Growth

Putting clients first has always been at

the heart of Hargreaves Lansdown, so this

was a very natural first priority to set. 2023

had seen a decline in our usually high levels

of client service, and we had clear client

feedback that there were opportunities in both

our digital experience and proposition, all of

which we needed to, and have, acted upon.

բ Service – We have been focused on

returning our Service standards to the levels

we and our clients expect. We have invested

in our colleagues and technology to reduce

call answering times, improve call quality

and increase the number of client calls fully

resolved at first point of contact. As a result,

we were able to handle over 190,000 calls

in the 5 weeks up to tax year end (up 21%),

with ~58% answered in under 20 seconds

and NPS peaking at over +50. We will never

be satisfied, and we will keep working

to continue to enhance and extend our

service offerings, but I would like to thank

all HL colleagues for their efforts to make

the improvement.

բ Proposition – This year, we completed the

launch of two new “Ready-Made” HL fund

ranges designed to give our clients a simple

way to invest. The “Managed by Experts”

range seeks to leverage the best of active

funds from across the market and the “Track

the Markets” range is a simple way to invest

in a range of passive tracker funds. We have

also launched a Ready-Made Pension Fund,

which uses a life stage strategy to adjust

risk based on a client’s age. Since launch,

the new “Ready-Made” suite of funds have

seen net inflows of circa £300 million.

January 2024 saw the launch of the UK’s

only multi-bank cash ISA, allowing clients

to spread their ISA savings across multiple

banks and maximise their FSCS protection.

By June 2024, over 33,000 clients had taken

advantage of this new offering, with AuA

of £533 million.

բ Digital Experience – Another key priority

this year was initiating plans to remove

all unnecessary friction from our digital

journeys and extend our App functionality.

Client feedback is very favourable towards

our digital experience, so we are evolving

our App and Website incrementally to meet

client needs even more effectively. 2024

saw the introduction of our new “Easy Bank

Transfer” option allowing clients to quickly

and easily top up accounts in a few clicks.

In 2024 this new top up option enabled

clients to add £2.4 billion into their accounts

whilst also reducing our costs to process

top-ups by £1.9 million. Our new News

section was launched, allowing HL’s teams

to get our clients the latest investment news

and research faster than ever before and

proving the new technology that we will

use to power much of the Website as we

migrate over the coming months. There is

still much we can do, but we have started

to make progress.

Increase Pace

We work in a fast-paced industry, and we are

accelerating our pace of innovation to deliver

for our clients. In 2024 we evolved our ways

of working to leverage the best thinking from

leading high performing digital innovators. This

has seen an acceleration of both the in-year

continual improvement work, evidenced in

the progress in digital experience above, and

a step change in delivery pace of our larger

strategic initiatives, further increasing our

confidence that we will deliver our strategic

change programme within the original

financial parameters.

Save to Invest

We have been constantly looking for thoughtful

ways to simplify, automate and standardise

to drive efficiency so that we can reinvest in

our business and our clients. We have made

good progress across several areas, including

leveraging Robotic Process Automation (RPA)

across a number of processes, freeing up

colleagues and funding to allow us to invest

more in improving our service ahead of tax

year end. We have launched automation tools

such as Salesforce and Amazon connect that

help colleagues be more efficient and provide

even better client service and have evolved our

ways of working that have significantly reduced

the dependence on contractors and 3rd party

consultancies. Overall, our FY24 underlying

costs were £338.5m, below guidance

expectations with the growth rate down

to 5% in H2.

CHIEF EXECUTIVE’S REVIEW

CONTINUED

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

CHIEF EXECUTIVE’S REVIEW

CONTINUED

Focus on our People

We welcomed several new highly experienced

colleagues to the HL leadership team as we

strengthened experience and capability in

key areas such as Technology, Operations

and Digital Product Management. Key was

strengthening experience in executing digital

transformation at pace, innovating with data

and technology to drive client value and

driving operational efficiency and cloud-based

resilience at scale. While still early days, I’m

pleased to see the positive impact these new

colleagues are already having across the

organisation as they couple their experiences

with the extensive experience we already

have in the organisation.

On a personal note, I have also had the

pleasure to welcome Alison Platt to the

organisation as Chair. Alison brings a wealth

of experience and a thoughtful, supportive

and engaging approach that has landed

exceptionally well across HL.

Findings from the

comprehensive Business

Wide Review

In parallel with executing on our initial 2024

priorities, we have undertaken a thorough

review of all aspects of the business, from our

client proposition to our operations and support

functions. This review has further strengthened

my belief that HL is a great business, built on

a strong heritage and with an important role to

help more people across the UK secure their

and their families financial future. However,

it is has also shown that we have not always

kept pace with the competitive environment,

the way customers consume marketing, the

increasingly sophisticated and demanding

requirements of digital customer journeys

and the service levels clients expect. This has

caused our rate of growth to slow over the past

few years, but also creates clear opportunities

that, if captured, will only accelerate the

number of clients we can help, and through

this drive the growth of the organisation.

The key findings are:

1. Client Engagement & Retention – Our

proposition and digital experience have only

changed modestly in the last few years. This

has resulted in Net new business growth

reducing from £8.7 billion in FY 2021 to £4.2

billion in FY 2024, reflecting declining client

and asset retention rates, which have fallen

from 92.1 per cent to 91.4 per cent and from

91.4 per cent to 88.5 per cent respectively

over the same time period. Advances in

technology, changing market dynamics

and evolving client needs mean there is

a significant opportunity to now take the

savings we are making across the business

and invest to evolve all aspects of the

proposition for our clients.

There is no single silver bullet – the already

announced strategic spend alongside

revenue investment to support long term

client and asset retention is important and

it will take a combination of continued

focus on service, significantly enhancing

the digital experience and client journeys,

and targeted revenue investment to be

successful. This revenue investment, were

it to be implemented, would be expected to

be largely mitigated through a combination

of asset growth, and both lower cost growth

and a return to pre-Covid platform asset

retention levels over the medium term.

2. Client Acquisition – HL was built on

providing clients great research and content

and helping them build their confidence to

invest. This need is still there today, and we

know we can help a lot more people start

their investing journey. What has changed

radically is how we need to reach and

engage potential clients through multiple

channels, and while we continue to attract

new and younger clients, the level of gross

new inflows we are able to attract to the

platform from new clients each year has

dropped by 35% since FY21. We need to

leverage our brand strength and data to

much more effectively get our messages

to target clients wherever they are. We

also offer great value, that both clients and

non-clients alike are not aware of, such

as our fund discounts and the deal prices

we achieve for our clients when trading.

We need to get better at telling this story

through our platform, marketing and

to the press.

3. Client Service – We have made good

progress on our Client Service from where

it was at the end of 2022 and early 2023

when our monthly NPS declined to a low of

+33 during the 2023 tax year end due to

challenges with Helpdesk capacity and call

volumes. We have significantly improved

since then and as I mentioned earlier, I am

proud of what our teams achieved this

year given the starting point, and our NPS

improved to +48 during tax year end period.

However, our review has shown there is

so much more we can do to really delight

every client.

4. Operational transformation & Cost

Efficiency – The review has highlighted

a significant opportunity to streamline

and automate our middle and back-office

processes, making them more resilient,

less prone to human error and freeing up

colleagues and spend to invest back into

serving our clients. We will seek to address

the disproportionate cost growth as client

numbers expanded over the last few years,

with our cost to serve increasing from

22.3bp in FY21 to 23.7bp in FY24.

5. Colleague Engagement – My review of the

organisation has also involved honest and

open conversations with colleagues at all

levels of the organisation. HL colleagues

are passionate about our clients. It’s in the

DNA from when the company was founded.

Colleagues’ feedback identified lack of

clear priorities, slow pace of change, siloed

working and manual processes as key

sources of frustration.

6. Investment Spend – HL is now two

years into its original capital markets day

investment programme, and while some

progress has been made in certain areas,

such as the launch of the new HL funds,

progress has been less tangible in key

areas such as operational automation and

digital platform automation. As we have

strengthened the HL Leadership team

and changed ways of working in parallel

with the review, we remain confident that

the investment plans can still be delivered

within the financial envelope originally set,

though full completion of some activities

will extend into FY27.

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

CHIEF EXECUTIVE’S REVIEW

CONTINUED

Many of these changes and programmes

are already underway, facilitated by the initial

priorities we laid out at the start of FY24, and

we have made considerable progress. While we

remain confident that we have identified the

opportunities we need to capture, and we can

deliver over the medium to longer term, I also

want to be clear that the delivery of our core

priorities involves significant change across

large parts of the business, coupled with on-

going investment over the medium term as set

out above. Any transformation programme of

this breadth and complexity carries significant

execution uncertainty, and there is no doubt

that delivery of benefits will not be linear.

An ever more competitive environment only

adds to the need to execute flawlessly.

Evolving our strategy

HL has a clear and refreshed strategy, which

the Board is confident will deliver over the

longer term, with good progress already made

against the initial priorities identified in FY

2024. The refreshed strategy comprises five

strategic priorities intended to address the

findings from the review, as set out at HL’s

interim results in February 2024:

(1) Transform the investing experience:

Removing jargon, terminology and

complexity and making it easy for its clients

to set their financial goals and work towards

achieving them with minimum effort and

fuss. A key focus will be improving HL’s

digital experience and proposition as well

as evolving its marketing capability.

(2) Combine the best of colleague and digital

capability: Bringing together the deep

experience of HL’s colleagues with advances

in AI and other digital technologies to serve

clients on their terms. HL will continue to

invest in its colleagues and technology

to deliver a service continuum from DIY

investing to full financial advice.

(3) Leverage economies of scale to drive

client value: Decoupling cost from growth

through the successful implementation of

HL’s transformation programme enabling

greater process simplification, automation

and standardisation, alongside agile ways

of working to enhance efficiency and

increase delivery pace. Through HL’s ‘Save

to Invest’ philosophy, cost benefits realised

are intended to moderate future cost growth

and fund the capability for continuous and

ongoing investment in the client proposition.

(4) Responsible and resilient business:

Continuing to invest to provide the robust,

resilient and available services expected

from the UK’s largest retail investment

platform enabled by the migration of HL’s

data centre to the cloud and the transition

off core legacy systems to modern

architecture. HL intends to ensure its

operating model is resilient and compliant

by design, with risk and compliance

requirements assessed during development

and embedded into systems and processes.

(5) Great people, great culture: Attracting top

talent to drive focus, pace and performance,

building on a strong set of values centred

around putting clients first. HL is focused on

enhancing its performance culture to align

the organisation to the refreshed strategy

and its successful implementation.

Outlook and Guidance

We operate in a large and growing market

within a context of continued macro-economic

uncertainty and market volatility. Therefore, our

purpose, “to make it easy to save and invest for

a better future” has never been more relevant.

So we welcome the new government’s early

focus on growth and encouraging more people

to engage with their finances.

We have work to do in order to deliver on our

refreshed strategy and reinvigorate growth in

the business but we have laid the foundations,

identified our key priorities and aligned our

operating model and people to ensure we

can deliver.

As we look forward, we will continue to focus

on our key priorities, to serve our clients and

our communities and to start to deliver against

our strategic goals.

Our priorities build on the work we have

already done, positively impacting all aspects

of our client value proposition, through both

our strategic transformation programme

and continued investment in our client value

proposition to give our existing clients the

experience, service and value that HL is

uniquely placed to deliver. We will also strive

to welcome even more new clients to the

platform by improving marketing, enhancing

our proposition for low confidence investors

as we help them start their investing

journey, and improving our onboarding

and consolidation journeys.

We will continue to focus on driving

efficiency and further reducing risk through

standardisation, automation and simplification.

We will innovate with the latest generation

of technologies which, coupled with our rich

data, will enable us to create new levels of

automation whilst retaining and increasing

client personalisation. We will be relentless

in our focus to capture the tangible benefits

of the work through our Save to Invest

programme, and as we do, we will invest

back into our business to further improve

the experience and value for our clients.

While our clients are at the centre of all we do,

at our heart we are a people business built on

amazing colleagues. Focus and performance

are the key people priorities for the year ahead

as we better align the organisation to the

things that really matter to our clients.

To unlock the opportunity for our clients we

need to undertake a significant transformation

of this business which will not be linear in its

delivery and will take some time. The cost

of delivering that programme is what we

have announced before (£175m +£50m dual

running) although certain business automation

and efficiency programmes will now complete

in FY27 not in FY26 as had been anticipated.

What we are keen to ensure is that we

strengthen our market leadership position and

in doing so we will beyond FY27, through our

Save To Invest programme, generate capacity

to continue to invest in the proposition.

Dan Olley

Chief Executive Officer

14 August 2024

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

Making it easy to save and invest means having a

proposition to support all clients, across different life stages

and experience levels. It also means providing clients with

an exceptional experience however they choose to engage

with us, whether digitally through our app or website or by

speaking to our Helpdesk and Financial Advisers.

DELIVERING ON

OUR STRATEGY

STRATEGY AND KPIS

2024 PRIORITIES

In 2024 we evolved our strategy

based on clear client needs

and to ensure we have the right

foundations to deliver our next

phase of growth.

We set out four priorities for the

business in 2024 and are pleased

to share our progress this year.

Delight clients,

drive growth

Right people,

right roles

Increase

execution pace

Save to invest

Looking across the business and identifying how we can be a more

efficient and scalable platform. From scrutinising where we spend

our money and identifying long-term saving opportunities to the

continued automation of manual processes. We are continuously

looking to create capacity to invest in our clients.

We are a digital platform, but we are not a digital only

proposition. Delighting clients comes from combining the

best of our colleague and digital capabilities. This year we

focused on building the right leadership team to guide the

business through a period of change and next phase of

growth, while ensuring the colleague proposition is fit for

a high performing culture.

Improved delivery is a function of how well we work together as a

business and the technology we are working with – we’re evolving

both. In 2024, we set out to ramp up delivery, improving alignment

and accountability across the business and building the discipline to

start less and finish more. We also continue to invest in the evolution

and modernisation of our technology estate.

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

STRATEGY AND KPIS

2024 RESULTS

Delight clients,

drive growth

Continue to evolve our value proposition to delight our clients and drive our growth.

բ Record platform AUA of £155.3 billion

(2023: £134.0bn). Net flows driven by

the platform were £1.5 billion (2023:

£1.6bn) with Active Savings contributing

£2.7 billion (2023: £3.2bn). We also saw

positive market movement of £17.1 billion.

Results reflect a drop in asset retention

to 88.5% (2023: 90.4%).

բ Added 77,406 net new clients (2023:

67,336), reflecting the popularity of our

existing and newer propositions including

our multi-bank cash ISA. However,

client retention dropped year-on-year

reflecting issues with service and digital

experience, both are being addressed.

բ Active Savings reached a record

£10.6 billion in AUA and over 300,000

total clients (2023: £7.8bn and

175,000) underpinned by new product

developments and attractive rates from

24 partner banks.

բ HL’s own funds range reached over

£10 billion in the year. We expanded

our Ready-Made solutions range, giving

clients access to a range of simple,

active and passive funds to match their

risk profile. Ready-Made AUM reached

over £1.3 billion.

բ Extended our retirement proposition by

launching a new lifestyling arrangement

for SIPP clients (the Ready-Made Pension

Plan) which reached £180 million in AUA

since launch in November 2023 and has

accounted for nearly one third of all new

SIPP accounts.

բ Opened up UK Gilt primary markets for

UK retail investors, enabling clients to

purchase Gilts directly and on the same

terms as institutions for the first time.

KPIs

Net New Business (NNB)

The net value of new assets

brought onto the platform

less assets leaving the

platform.

Result:

£4.2bn

(2023: £4.8bn)

Total Clients

Represents the total number

of active clients that use our

service. A client is someone

that holds at least one

account with a value over

£100 at the year end.

Result:

1.88m

(2023: 1.80m)

Client Retention

Based on the monthly

retained number of clients,

as a percentage of the

opening month’s clients and

averaging for the year. A lost

client is deemed as one who

falls below a holding of £100.

Result:

91.4%

(2023: 92.2%)

Increase

execution pace

Delivering for our clients every day, improving our proposition on an ongoing basis.

բ Client ‘front door’ moved to the cloud

underpinning delivery of key client

journey improvements including the

revised website navigation which

resulted in a 20% uplift in transfers-in

worth over £600 million.

բ Launching a new Investment Search

function in our app to help clients choose

an investment aligned to their goals,

saw more clients opt for HL investment

solutions. Flows into HLFM solutions

increased from less than 5% to around

15%. Updates to key client journeys led to

our highest level of gross new business

across tax year end on mobile.

բ Rationalised technology and delivery

roadmap, completing five key initiatives

as set out at the start of 2024. These

include ongoing Service and Workplace

transformation, plus key regulatory

initiatives. A further ten programmes

have been identified for 2025.

բ Key regulatory initiatives including

abolition of Lifetime Allowance in

pensions and T+1 Settlement for equities

delivered successfully and on time, with

a seamless client experience.

բ Embedded a new Group risk maturity

model. This resulted in improved

oversight and reporting capabilities for

risks across the business and led to us

achieving our target risk maturity score.

KPIs

Risk Maturity

Our Risk Maturity KPI is a qualitative

assessment of the maturity of the business

approach to risk management.

Result:

On target

(2023: On target)

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

STRATEGY AND KPIS

2024 RESULTS CONTINUED

Right people,

right roles

Make HL a great place to work. The right culture, with the right people in the right roles,

focused on the right priorities to deliver the strategy.

բ New executive team already delivering

on the strategy. Key hires include Richard

Hebdon (new Chief Digital & Technology

Officer), Lucy Thomas (Corporate Affairs

Director), Afonso Nascimento (Chief

Strategy Officer) and Gary Logan as

(Chief Operating Officer).

բ Reset client service levels by investing

in our Helpdesks and ensuring the right

tools are in place to deliver a great client

experience at scale. This resulted in a

recovery in service levels across the year,

with client NPS rising from 41% H124 to

44% H224. Our full year result was weighed

down by service issues seen in H223.

բ Colleague engagement dipped, reflecting

key sources of frustration in the lack

of pace of change, siloed working and

manual processes.

բ Renewed HL’s People strategy by

reviewing HL’s purpose and values

as well as redeveloping the colleague

proposition to ensure the right

foundations are in place to support

a performance culture.

բ New digital and technology leadership

established and directly aligned with

the business structure. We also formed

a new function to manage our cross

functional transformation programmes

with dedicated resource.

բ Refreshing the ESG strategy, ensuring

regulatory compliance by publishing

HLAM and HLFM TCFD reports, including

investment net zero transition plan for

HL’s funds and creating a stronger ESG

risk framework.

KPIs

Client Service NPS

Based on the average result

of client feedback in the

quarterly client satisfaction

surveys in 2024.

Result:

42.4%

(2023: 44.8%)

Colleague engagement

62%

(2023: 68%)

Gender Diversity Senior

Leadership (SL):

34.0%

(2023: 35.4%)

Ethnic Minority SL:

7.9%

(2023: 6.7%)

Environmental Social

Governance (ESG)

Performance assessed

against key activities in

2024: TCFD compliance for

HLFM and HLAM.

Result:

On target

(2023: Above target)

Save to

invest

Striving to be a fitter and leaner business, so we can reinvest savings back into the business.

բ Delivered statutory profit before tax

of £396.3 million (2023: £402.7m),

reflecting our ongoing strategic

investment spend and resilient revenue

growth across the year. On an underlying

basis, profit before tax was up 4% to

£456.0 million.

բ Underlying costs grew 8% year-on-

year reflecting wage and cost inflation,

increased technology spend and higher

dealing costs in line with higher client

trading activity. Our increased focus on

cost discipline meant we slowed cost

growth especially in the second half

of the year.

բ Decoupling growth from cost to serve

by simplifying and automating our

business processes. Automated six

manual processes leveraging robotic

process automation and delivering

£0.6 million in savings this year. Seven

further processes are estimated to go

live in 2025.

բ Rollout of new third-party technology

enabling colleagues to deliver a great

client experience, efficiently at scale.

Our service transformation programme

delivered £0.6 million savings this

year and is on track to deliver another

£1.1 million in the coming year.

բ Extended Easy Bank Transfer payment

capabilities across a number of new

products, making it easier for clients

to add money to the platform. In 2024,

this method processed over £2.4 billion

payments, saving £1.9 million.

բ Introduced disciplined management

of third party spend across all areas of

the business. A key focus in 2024 was

reducing our spend on contractors and

consultancies and we saved a further

£1.7 million as part of our ongoing digital

delivery review.

KPIs

Underlying Costs

Operating costs less strategic investment

costs, intangible impairment and

restructuring costs.

Result:

£338.5m

(2023: £314.6m)

Statutory Profit Before Tax

Profit generated by the business over the

period, with statutory PBT measuring the

overall business performance including

strategic spending.

Result:

£396.3m

(2023: £402.7m)

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

GROWTH

ACCELERATION

STRATEGY AND KPIS

2025 PRIORITIES

Looking ahead to 2025, we’ll be

focusing on five key priorities to

drive the business forward. While

our headline strategic priorities

remain the same, we’re evolving

our focus in 2025.

Increase

retention

Drive new

client growth

Performance

culture

Happy clients tend to stick around. Improving the client

experience remains at the core of our strategy and we’ll

continue to focus on improving both the digital and

colleague client experience. This year we’ll be looking

at how we can provide clients with a more personal

experience, evolving our proposition, service and digital

features to address each client segment more specifically.

We have a large and growing addressable market, meaning

there’s lots for us to go after. This year we’re getting more

specific on who we can help, ensuring they know about us

and how we can help. We’ll also make it easier to become a

client by streamlining our digital onboarding and ensure it's

attractive to consolidate wealth with HL.

Save to invest

Saving to invest is a muscle we will continue to build.

Identifying ways to be a more efficient business, from

how we set ourselves up to where we spend our money.

We’ll embed what we learned in 2024 when it comes to

new ways of working across the business and continue

to rationalise our spending.

Drive execution,

reduce toil

Execution will remain a focus in 2025, building on the

improvements seen in 2024. Ringfencing our key strategic

initiatives was a success, we’ll accelerate this process and

apply it too a bigger pool of projects in 2025. We’ll continue

to modernise our technology estate, through ongoing cloud

migration and continuing to retire legacy systems.

HL has great people and a strong client focused culture.

With our renewed executive and technology leadership in

place and already having an impact, this is set to ramp up

in 2025. We will further strengthen our talent by increasing

our focus on performance, empowering colleagues with the

coaching, leadership and technology they need to drive

the next phase of HL’s growth.

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

STAKEHOLDER ENGAGEMENT

A REFRESHED STRATEGY

TO DELIVER VALUE

FORALL OUR

STAKEHOLDERS

Regular engagement supports us in understanding

their evolving needs, which we then reflect in our

decision-making process, and the ongoing delivery

of our strategic goals.

The evolution of our strategy continues

to be informed by our stakeholders.

CLIENTS

As a client’s lifelong financial partner, delivering

great client outcomes is in our DNA.

How did we

engage with

them?

• With an average 3.6 million

weekly logins across web

and app we monitor our client

behaviours and journeys across

our digital platforms.

• Feedback received from the 1.3

million calls and 0.4 million emails

received by our Helpdesks. Plus,

analysis of complaints data.

• Regular client pulse checks,

targeted client surveys and

user testing embedded into the

product lifecycle from discovery

to review.

What were the

key topics raised?

• Client experience both in terms

of our service levels and app and

web digital experience.

• Simple investment solutions

available at the time of opening

a SIPP and ISA account.

• Alternative and tax-efficient

investment options to benefit

from higher interest rate

environment.

• A Cash ISA offering with greater

flexibility with access to multiple

banks and products across

maturities.

• Guidance to help clients make

the right decision for them to

ultimately improve outcomes.

How did we

respond?

• Invested in our Helpdesks both

in terms of tech and headcount,

resetting our service levels. This

led to a record tax year end for

total contact and client NPS

recovering to 48 (FY23: 33).

• Refreshed and simplified our

website navigation, delivering

an improvement in client

journeys, for example 20% uplift

in conversion of ‘transfers in’

journeys.

• Created the Ready-Made

Pension Plan and Ready-Made

ISA range making it easier to start

investing and have investments

managed by HL’s experts.

• Launched the UK’s first ever

multi-bank Cash ISA – offering

clients access to multiple savings

products under one roof.

• Built people’s confidence and

access to the UK Gilt market

through targeted content

and offering clients primary

market access.

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

STAKEHOLDER ENGAGEMENT

CONTINUED

SOCIETYSHAREHOLDERSCOLLEAGUES

As a responsible employer, our strategy is to make HL the

best place to work for our colleagues, ensuring we build

an inclusive and diverse culture for all.

As owners of our company, engaged and proactive

shareholders are instrumental to our development

as a business.

As a responsible business, platform and fund manager,

we drive positive change at a local and national level.

• Supported colleagues across

a year of transition, increasing

feedback opportunities and

support channels available.

• Launched regular CEO listening

sessions – ensuring colleagues

across the business are heard.

• Colleagues led the reframing

of HL’s purpose and values,

ensuring they are relevant

and actionable.

• Continued to invest and engage

in HL’s Colleague Forum – elected

colleagues from each department

to provide strategic feedback.

• Made greater use of data in

shaping and executing our revised

people strategy, incorporating

feedback from our annual

colleague engagement survey.

• Our senior management team

met with shareholders and

potential investors across the

year via a programme of results

presentations, individual and

group meetings and attendance

at in-person and virtual

conferences both in the UK

and abroad.

• Our AGM, which provides an

opportunity for shareholders

to ask questions and vote

on resolutions.

• Our corporate brokers and sell-

side analysts provide valuable

feedback and market insight.

• Continued to engage with

policymakers and the FCA to

ensure the position of retail

investors in the UK is understood.

• HL’s Savings & Resilience

Sounding Board explores

financial resilience research

with input from HM Treasury,

the Department for Work and

Pensions, the FCA, Money and

Pensions Service, businesses

and charities.

• Explored citizenship and

sustainability agendas with

community partners, charities

and the Bristol One City Plan.

• Understand the evolution of HL’s

strategy under new leadership.

• Greater opportunity for

colleagues to feedback and

contribute to the business’

development.

• HL’s digital transformation means

colleagues needed broader

knowledge and skills to drive

innovation at speed and scale.

• Improved and more transparent

development opportunities

across all role levels and areas of

the business.

• More work to make HL an

inclusive business.

• Evolution of HL’s strategy and

how management will deliver it.

• HL’s approach to net interest

margin considering the FCA’s

Dear CEO letters.

• The increasing threat of

competition and pricing pressure

and HL’s response.

• Capabilities of the new leadership

team to deliver strategy.

• Sustainable operating margin and

how management is tackling the

cost base.

• Review of the Advice/Guidance

boundary and how clients benefit

from greater support through

personalised nudges.

• Range of Government and FCA

consultations including the UK

ISA, retail access to IPOs and

corporate bond markets.

• Understanding the intricacies and

support clients need to manage

their retirements.

• Improved ESG labelling and

research.

• Established multiple

communication channels to

improve the flow of information

including regular all-colleague

updates from Dan and the

leadership team.

• Evolved our People strategy

to focus on performance and

ensuring HL has the right

foundations in place to achieve

this – implemented new

management training, increased

participation in HL mentor

scheme and launched a new

learning platform.

• Launched a range of new

learning pathways, co-created

with colleagues to address

emerging skill needs.

• Launched new programmes

targeting improved diversity at

leadership and Board level.

• Key investor questions

were incorporated into

results announcements and

presentations – particularly to

do with evolution and delivery

of HL’s strategy under new

leadership and our approach to

net interest margin.

• Regular reports and feedback

to the executive team and the

Board on key market issues and

concerns.

• Set out a clear capital

management framework at our

Interim Results in February 2024.

• Shared findings from Dan’s

comprehensive business wide

review, as set out on page 16.

• Engaged with Government

and the FCA’s review of Advice/

Guidance boundary.

• Partnered with Nottingham

University, researching how

consumers react to nudges.

• Published 4th and 5th Savings &

Resilience Barometer with Oxford

University focusing on the self-

employed and efficient money

use for households.

• Engaged policymakers on small

pension pots issue and Lifetime

Pension model.

• HL Foundation supports local

communities and charities – Fear

Free (domestic abuse victims)

plus Just Finance Foundation

(financial literacy).

• Created Bristol Financial

Resilience Action Group (BFRAG),

working with 19 companies to

improve employee financial

resilience.

• Financially Fearless, HL’s

female investment community,

reached over 19,000 winning a

number of awards including the

Diversity and Innovation award

at MoneyAge awards.

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

OPERATING AND FINANCIAL REVIEW

INVESTING TO DECOUPLE

COST FROM GROWTH

…strength in UK and US

markets combined with

modest Net New Business

(NNB) growth and a step up

in trading volumes together

driving increased revenue

andthe highest level of AUA

seen on the platform.

Amy Stirling

Chief Financial Officer

Assets Under Administration (AUA)

and Net New Business (NNB)

Year ended

30 June 2024

£bn

Year ended

30 June 2023

£bn

Opening AUA* 134.0 123.8

Platform growth* 1.5 1.6

Active Savings growth* 2.7 3.2

Total Net New Business 4.2 4.8

Market growth and other* 17.1 5.4

Closing AUA** 155.3 134.0

* Platform growth, Assets under Administration, Net New Business and Active Savings

Growth are alternative performance measures. See the Glossary of Alternative

Performance Measures on page 176 for the full definition.

2024 has been a year of significant change for HL; we

welcomed Dan Olley as our new CEO and Alison Platt as our

new Chair; both of whom have brought rigorous challenge

and scrutiny to where we are as a business, with Dan leading

a business wide review during the course of the year, the

conclusions and findings of which are set out in his CEO

review on page 16.

Many of the programmes and changes identified are already

well underway and have impacted our financial results this year,

both in terms of increased strategic investment spend incurred

and in the shape of our Underlying Operating costs, where

we are starting to see the benefit in a different shape to our

headcount growth particularly in the second half of the year

as explained on page 28.

Overall we have delivered a good performance in the year, with

strength in UK and US markets combined with modest levels of

Net New Business and a step up in trading volumes together

driving increased revenue and the highest level of AUA seen on

the platform. Whilst Underlying operating costs have increased

again during the year, this is as expected and we are pleased

to report a much lower level of cost growth in the second half

of the year.

As we look forward, we expect the actions already being taken

as a result of the review to improve the competitiveness of our

service proposition, enabling improvements to client and asset

retention and to decouple cost from growth, through delivering

scale efficiencies which will lead to sustained lower cost growth

in the medium term.

The year has continued the trend seen in the prior year of

a challenging economic backdrop and geo-political issues

impacting investor confidence. Despite this, we have seen an

encouraging trend in the year, with the second half of the year

seeing clients and asset growth on the platform particularly

buoyed around tax year-end and that trend continuing through

to the end of the financial year.

Total AUA increased by 16% to £155.3 billion at the year end

(2023 £134.0bn). Total net new business for the year was

£4.2 billion (2023: £4.8bn).

Strategic investment programme will deliver scale

efficiencies and lower cost growth

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

OPERATING AND FINANCIAL REVIEW CONTINUED

Platform growth was £1.5 billion (2023: £1.6bn) with £0.7 billion

(2023: £0.7bn) of net movement into Active Savings, where we

also saw a £2.7 billion (2023: £3.2bn) of new money in the year,

bringing net new business to £4.2 billion total growth.

Net new business has been seen mainly in the second half

of the year, as clients took advantage of tax year end to top

up their ISAs and SIPPs, as inflation declined and interest rates

stabilised. We have seen more contributions into our SIPP

products in the year than ever before with record pension

savings. The launch of our new multi-bank Cash ISA product

within Active Savings in the second half of the year has had a

positive impact on the Savings product and there is now over

£10 billion of client cash in the service.

In addition to the net new business we have also seen market

movements of £17.1 billion (2023: £5.4bn), which was seen

predominantly in the second half of the year as markets

increased significantly compared to the previous year.

As previously emphasised, engaging with clients and helping

them to navigate the challenges of the economic backdrop

remains a priority. We also remain committed to assisting

clients in improving their financial engagement and resilience.

In the year we introduced 78,000 net new clients to our

services (2023: 67,000), growing our active client base by

4% to 1,882,000.

During the year we reached a milestone with 300,000 clients

now having an Active Savings accounts (2023: 175,000)

representing a significant increase over the prior year, buoyed

by the rates available and the new multi-bank Cash ISA.

Client retention been impacted through the year as we have

not consistently delivered the high standards of client service

and digital experience that our clients have come to expect.

Whilst still high at 91.4% (2023 92.2%) we believe we should

do better and addressing this is one of the key priorities for

the year ahead.

Asset retention reduced to 88.5% (2023: 90.4%) for the year, as

we again saw high cash withdrawals, consistent with the stable

rate environment and the preference of many clients for cash

ISAs, while funds allocated for investment have in many cases

been utilised to cover increased living costs. Active Savings has

a lower asset retention rate than the core platform as clients

often use it in the short term to manage their specific cash

needs, saving for a certain event and then withdrawing the

cash (e.g. the payment of a tax bill in January). Asset retention

excluding Active Savings would be 1.7% higher at 90.2%

(FY23: 91.5%).

An active client is defined as one who holds an account

containing £100 or more with us.

Income Statement

Year ended

30 June 2024

£m

Year ended

30 June 2023

£m

Revenue 764.9 735.1

Operating costs (398.2) (350.7)

Finance and other income 30.2 19.0

Finance costs (0.6) (0.7)

Profit before tax 396.3 402.7

Tax (103.1) (79.0)

Profit after tax 293.2 323.7

Profit before tax 396.3 402.7

Adjusted for:

– Strategic investment costs 39.9 36.1

– Intangible impairment 14.4 –

– Restructuring costs 5.4 –

Underlying profit before tax* 456.0 438.8

Tax on underlying profit* (118.5) (86.1)

Underlying profit after tax* 337.5 352.7

* Underlying profit before tax, tax on underlying profit, and underlying profit after tax for

the period exclude £39.9 million of strategic investment costs, intangible impairment

of £14.4 million and restructuring costs of £5.4 million. See the Glossary of Alternative

Performance Measures on page 176 for the full definition.

Revenue

Total revenue for the period increased 4% to £764.9 million

(2023: £735.1m), with all key revenue lines increasing compared

to the prior year and the first half of the year in the second

half of 2024, the exceptions being cash and HLFM funds.

This has been driven by a return to growth in all asset classes,

excluding cash, as asset levels benefitted from positive market

movements and net new business. In the case of cash we have

seen a decline in the value of cash held on the platform and an

increase in the pass through to clients, which has been offset by

an increased margin throughout the full period, as interest rates

stabilised following high growth in the prior year.

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

OPERATING AND FINANCIAL REVIEW CONTINUED

The table below breaks down revenue, average AUA and margins earned during the period:

Year ended 30 June 2024 Year ended 30 June 2023

Revenue

£m

Average

AUA

£bn

Revenue

margin*

bps

Revenue

£m

Average

AUA

£bn

Revenue

margin

bps

Funds

249.3 65.4

38 236.4 60.7

165.7 55.4 30 147.7 48.8 30

Cash

260.7 12.4 210 268.7 14.0 192

HL Funds

53.2 9.3

57 54.3 8.4

Active Savings

19.9 9.3

21 8.7 6.4

Other

16.1 – – 19.3 – –

Double-count

– (9.2)

– – (8.3)

–

Total 764.9 142.6

– 735.1 130.0

–

* Revenue margin is an alternative performance measure, see the Alternative Performance Measures glossary on page 176 for the full definition.

1 Platform fees.

2 Stockbroking commission and equity holding charges.

3 Net interest earned on cash held in investment accounts.

4 Annual management charge on HL Funds, i.e. excluding the platform fee, which is included in revenue on Funds.

5 Revenue from Active Savings earned as fees from partner banks.

6 Average cash held via Active Savings.

7 Advisory fees and ancillary services (e.g. annuity broking and HL Workplace Solutions).

8 HL Funds AUM included in Funds AUA for platform fee and in HL Funds for annual management charge. Total average AUA excludes HL Fund AUM to avoid double-counting.

Funds

Funds continue to be the largest asset class on the platform

at 46% of average AUA for the year and 46% of closing AUA

(2023: 47%) reflecting the significant range of investment

solutions available to meet a broad range of client needs.

Revenue on Funds increased by 6% to £249.3 million (2023:

£236.4m) reflecting the increase in average AUA, with this

revenue line returning to growth in the second half of the year.

Revenue margin on Funds was largely flat at 38bps. This was

in line with our guidance from the prior year.

Revenue on Shares increased by 12% to £165.7 million (2023:

£147.7m) and the revenue margin of 30bps (2023: 30bps) was

in the middle of our expected range. This was as a result of

a return to higher deal volumes in the second half of the year,

particularly in respect of overseas trades, where we also earn

a margin on foreign exchange fees, as investor confidence

increased, inflation declined and markets improved, with

a peak in March and April around tax year end.

During May and June, we ran a promotional campaign to drive

awareness of the breadth of the trading proposition offered

on our platform, to both new and existing clients. This includes

extensive research, as well as a wide range of investment

choices from UK and international shares, funds, ETFs and

investment trusts; with clients benefitting from a £100 rebate

against any cost of trading during that period. We were pleased

to see over 128,000 clients benefit from the offer.

Average deals per trading day in the first half of the year were

31,000 and rose in the second half of the year to 38,000 per

day. Total deal volumes, including automated deals such

as dividend reinvestment, increased by 6% to 8.8 million

(2023: 8.3m) and were in line with our expectation of deals

per trading day. Dealing peaked in April and June at 41,000

deals per trading day, in each of those months propelled by

news of growth in UK, US and European markets, tax year end

and the news of the UK election. This compared with a low in

September of 27,000. Overseas dealing volumes increased and

represented 25% of our total client driven deals (2023: 21%).

We continue to improve our client experience in relation to

share trading. As investor confidence improves we believe

we are still well placed to see a return to higher trading volumes

as demonstrated in the second half of the year. Shares AUA,

at the end of the year, was £61.4 billion (2023: £50.8bn).

The slight decline in the margin in the year reflects the full

year impact of the reduction in platform fees of the Lifetime ISA

(LISA) in the prior year, as well as the impact of the removal of

fees for the Junior ISA; both changes were made in the second

half of the previous financial year.

In addition, our Workplace Solutions business, where most

of the assets are held in funds, continues to grow, albeit

at a slightly lower margin.

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

OPERATING AND FINANCIAL REVIEW CONTINUED

Cash

Revenue on cash (NIM) reduced in the period to £260.7 million

(2023: £268.7m) reflecting the expected ongoing reduction in

client cash held on the platform, offset by an increased margin

resulting from a higher, more stable base rate throughout the

year. Cash held in Investment accounts was £12.4 billion as at

the year end (9% closing AUA), a reduction of £1.6 billion in the

year as clients either invested, chose to save via our Active

Savings offering or withdrew cash from the platform.

The year saw an increase in base rate from 5.00% to 5.25%,

compared to the changes in the previous year, which saw seven

increases from 125bps to 500bps as at 30 June 2023.

As of 30 June 2024, we pass through the following interest

rates to our clients depending on the level of cash held in each

investment account:

Fund & Share Account 2.25% – 2.90%

Stocks & Shares ISA, JISA and LISA 3.00% – 3.70%

SIPP 3.45% – 4.20%

SIPP Drawdown 3.65% – 4.55%

HL Funds

During the year we have launched a further five funds including

our Global Corporate Bond fund and the four funds in our multi-

index range (the range that provides a passive and lower cost

alternative to our flagship active range). These represent the

continued evolution of our fund range that is underpinned by

our risk managed multi-asset (‘ready-made’) funds, supported

by our series of more specialist fund solutions. The fund range

now includes solutions using active and passive funds, as well

as our income focused strategies.

Net flows into the new funds, launched over the past 2 years,

helped drive inflows of c. £0.5 billion, with market moves

supporting AUM growth, which totaled £10.3 billion at the

end of 2024. The average AUM over the year in our own funds

was £9.3 billion (2023: £8.4bn) and revenues, as expected,

were down 2% from £54.3m to £53.2m. This has predominantly

been driven by the growth of new fund ranges that have

lower charges and therefore reduced margin. This transition

is expected and the margin on HL Funds has reduced to

57bps (2023: 65bps) accordingly.

HL funds are a key part of our strategy, and we continue to

evolve the range and competitiveness of our own investment

funds, serving client needs and generating increased asset flow.

Active Savings

Revenue from Active Savings has grown significantly in the year

to £19.9 million (2023: £8.7m) driven by strong net flows across

the period of £2.7 billion (2023: £3.2bn) and strengthening

margin. Margin on Active Savings is generated through a

combination of product margin, payable by the partner banks

whose products we offer on the platform and a share of interest

earned on cash held in the client hub account. The average

margin throughout the year was 21bps (2023: 14bps).

As at 30 June 2024 the AUA was £10.6 billion (2023: £7.8bn)

and over 300,000 clients now have an Active Savings account.

In the second half of the year we launched our new multi-bank

cash ISA, which provides clients with the full suite of Cash ISA

products (fixed-term, easy access and limited access) from

multiple banks, additional functionality and incremental partner

bank relationships.

Other

Other revenues comprise advisory fees and ancillary services,

such as annuity broking and HL’s Workplace Solutions for

Corporate employers. The amount has declined year-on-year,

with the largest movements seen in distribution income in

respect of third party services.

Year ended

30 June 2024

£m

Year ended

30 June 2023

£m

Ongoing revenue 622.5 612.6

Transactional revenue 142.4 122.5

Total revenue 764.9 735.1

The Group’s revenues are largely ongoing in nature, as shown in

the table above. The proportion of ongoing revenues remained

fairly static at 81% in the period (2023: 83%) as the transactional

stockbroking commission increased versus last year and the

net interest income decline have offset one another. Ongoing

revenue is primarily comprised of platform fees on funds and

equities, fund management fees, net interest income and

ongoing advisory fees. This increased by 2% to £622.5 million

(2023: £612.6m) driven by higher AUA.

Transactional revenue primarily comprises stockbroking

commission and advisory event-driven fees. This increased by

16% to £142.4 million (2023: £122.5m) reflecting the increase

in client-driven equity dealing volumes.

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

OPERATING AND FINANCIAL REVIEW CONTINUED

Underlying operating costs*

Year ended

30 June 2024

£m

Year ended

30 June 2023

£m

Underlying

cost

Underlying

cost

People costs* 179.9 167.9

Activity costs* 53.6 45.5

Technology costs* 48.2 38.8

Support costs* 51.8 56.3

Underlying costs** (pre-FSCS) 333.5 308.5

Total FSCS levy 5.0 6.1

Underlying operating costs** 338.5 314.6

* Definitions are shown in the Glossary of Alternative Financial Performance Measures

on page 176.

** Underlying operating costs for the period exclude £39.9 million of strategic investment

costs, intangible impairment of £14.4 million and restructuring costs of £5.4 million. See

the Glossary of Alternative Performance Measures on page 176 for the full definition.

Underlying operating costs

Underlying operating costs increased by 8% to £338.5

million (2023: £314.6m) reflecting wage and cost inflation,

annualisation of headcount growth, increased technology spend

and higher volume driven activity costs, offset by a reduction

in support costs and a lower Financial Services Compensation

Scheme (FSCS) levy.

People costs

People costs increased 7% to £179.9 million (2023: £167.9m) as

we invested to support our colleagues through the course of the

year. Our pay award for the year was an average of 5% across

all of our junior role levels. We have also seen the annualisation

of headcount growth from the prior year.

Our headcount increased during the first half of the year, with

2,480 FTE in place at 31 December and then peaking in January

in the run-up to tax year end. Staff numbers have declined in

relation to permanent staff and we have significantly reduced

the number and subsequently the cost of contractors in the

second half of the year, closing out the year at 2,409 FTE.

Staff costs in the second half of the year were lower than in the

first half of the year as a result.

Activity

Activity costs comprise marketing costs, dealing-related costs,

and payment costs for client cash transferred onto the platform.

Overall activity costs have increased by £8.1 million during the

period reflecting higher dealing volumes, offset by reduced

debit card charges for clients moving money onto the platform.

The primary driver has been dealing costs, which have

increased by 29% and specifically in relation to overseas dealing

we have incurred an additional £4.5 million. This is driven by the

increased stockbroking deals, as noted previously.

Offsetting these increased costs are reduced costs in relation

to payment costs, after the introduction of pay by bank in the

prior year. This has lead to a cost saving of £1.9 million over prior

year. Marketing costs have remained consistent year on year,

but our mix of spend has changed, with increased spend on

direct client acquisition offsetting reduced brand spend.

Technology

Technology costs increased to £48.2 million (2022: £38.8m),

again driven by software support fees and service subscriptions

as we build out our digital capability and transfer our systems

to the cloud. We continue to improve the security of our IT

environment. As previously communicated, this requires the use

of more third-party software, leading to an increase in licence

and subscription costs throughout the year as we invest in our

overall capability.

Support

Support costs, which include legal and professional fees,

office running costs, depreciation and amortisation decreased

to £51.8 million (2023: £56.3m). This largely relates to the

one off increase in the dilapidations provision and increases

in relation to office running costs in the prior year, which have

not been repeated. Insurance costs and professional fees have

decreased in the year, but this has been offset by an increase

in costs relating to client compensation.

The Financial Services Compensation Scheme (FSCS) levy run

by the FCA decreased to £5.0 million (2023: £6.1m). The FSCS

is the compensation scheme of last resort for customers of

authorised financial services firms.

Adjustments to underlying profit

Total strategic spend, including impairment of intangible assets

and restructuring costs in the year were £64.0 million, of which

£59.7 million has been expensed, as shown in the income

statement on page 25 and £4.3 million has been capitalised in

line with our accounting policy. As planned, our level of strategic

spend increased in the year as we are now running multiple

scale programmes concurrently as part of the transformation.

Spend primarily comprises staff (including contractor) costs

and associated professional fees, associated compliance,

infrastructure and support costs. These costs incurred in the

period are in addition to the business as usual, or underlying,

costs of the business.

As set out in our interim results, we have recognised an

impairment charge of £14.4 million against intangible assets

previously capitalised in the first half of the year. Full details

of the impairment are included in note 2.2 to the financial

statements on page 147.

£5.4 million has been incurred in the period in relation

to the reset of the Executive Leadership and the Digital

Leadership teams.

Profit and earnings

During the year, £30.2 million of finance income resulted from

a higher level of corporate cash combined with more stable

interest rates throughout the full year. Finance costs comprise

the undrawn cost of the Group’s Revolving Credit Facility and

the interest incurred on the Group’s leases.

On an underlying basis, profit before tax increased by 4% to

£456.0 million (2023: £438.8m). On a statutory basis, profit

before tax decreased by 2% to £396.3 million (2023: £402.7m).

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

Tax

The effective tax rate for the period was 26.0% (2023: 19.7%).

This is due to the increase in the corporation tax rate in April

2023, which has now been in place for a full year.

The Group’s tax strategy is published on our website at

http://www.hl.co.uk

Earnings per share

Year ended

30 June 2024

£m

Year ended

30 June 2023

£m

Operating profit 366.7 384.4

Finance and other income 30.2 19.0

Finance costs (0.6) (0.7)

Profit before tax 396.3 402.7

Tax (103.1) (79.0)

Profit after tax 293.2 323.7

Underlying profit before tax* 456.0 438.8

Tax on underlying profit* (118.5) (86.1)

Underlying profit after tax* 337.5 352.7

Weighted average number

of shares for the calculation

of diluted EPS 475.2 474.6

Diluted EPS (pence per share) 61.7 68.2

Underlying diluted EPS

(pence per share)* 71.0 74.3

* Underlying profit before tax, tax on underlying profit before tax, underlying profit

after tax and underlying diluted EPS for the period exclude £39.9 million of strategic

investment costs, intangible impairment of £14.4 million and restructuring costs of

£5.4 million. See the Glossary of Alternative Performance Measures on page 176 for

the full definition.

Diluted EPS decreased by 10% from 68.2 pence to 61.7 pence,

this highlights the impact of the increase in the tax rate that

has been in effect for the full year. The Group’s basic EPS was

61.9 pence, compared with 68.3 pence in 2023.

Underlying diluted EPS decreased by 4% from 74.3 pence to

71.0 pence (see Glossary of Alternative Performance Measures

on page 176 for the full definition). The Group’s underlying basic

EPS was 71.2 pence, compared with 74.4 pence in 2023.

Capital and liquidity management

Hargreaves Lansdown looks to create long-term value for

shareholders by balancing delivery of profit growth, capital

appreciation and an attractive dividend stream to shareholders

with the need to invest in the business to maintain a broad

savings and investment offering and high service standards

for our clients.

The Group seeks to maintain a strong net cash position and

a robust balance sheet with sufficient capital and liquidity to

fund ongoing trading and future growth. The Group’s net cash

position at 30 June 2024 was £636.6 million (2023: £503.3m).

Cash generated from operations more than offset the payments

of the 2023 final ordinary dividend and the 2024 interim

dividend. This includes cash on longer-term deposit and is

before funding the 2024 final dividend of £142.2 million.

The Group has a Revolving Credit Facility agreement with

Barclays Bank to provide access to a further £75 million of

liquidity. This is undrawn and was put in place to further

strengthen the Group’s liquidity position and increase our cash

management flexibility. The Group also funds a share purchase

programme to manage the impact of dilution from operating

our share-based compensation schemes.

The healthy net cash position provides both a source of

competitive advantage and support to our client offering. It

provides security to our clients and allows us to provide them

with an excellent service, for example through using available

liquidity to allow same day switching between products that

have mismatched settlement dates.

Capital

As set out in our interim results for the six months ended

31 December 2023, the Board has reviewed and agreed the

capital management framework for HL. This framework takes

into account, in priority order, appropriate levels of capital

above the Regulatory Requirement, the level of organic

investment required to support the business plans for growth

and efficiency, and the importance of delivering sustainable

and attractive shareholder returns.

The framework comprises four elements in priority order:

1. Maintaining a Robust Balance Sheet

Our priority continues to be maintaining robust financial health;

holding a management buffer above the regulatory minimum

to support the businesses’ regulatory capital and liquidity

requirements. The FCA’s Investment Firm Prudential Regime

(IFPR) applies to the Group and HL completes this assessment

through the Group Internal Capital Adequacy and Risk

Assessment (ICARA) processes. The Regulatory Requirement is

driven by factors set out in the ICARA framework with the main

drivers of material movement being the level of AUA managed

by HL and our internal assessment of the level of risk presented

within the business.

2. Investing for Growth and Efficiency

We will deploy capital for investment in the business to maintain

and enhance our platform capabilities through investment in

people capability, technology and innovation. Where appropriate,

the Board may choose to selectively deploy capital for inorganic

growth to accelerate delivery of the strategy.

3. Ordinary Dividend Policy

Recognising the importance of shareholder returns, cash

distributions to shareholders will be primarily driven through our

progressive ordinary dividend. We will continue to give specific

dividend guidance on an annual basis whilst we are investing in

the business through the Strategic Spend programme through

to FY27.

OPERATING AND FINANCIAL REVIEW CONTINUED

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

4. Other Capital Returns

Where the Board assesses there to be surplus capital available

for distribution after the above considerations have been taken

into account, this will be returned to shareholders as part of our

full year annual cycle over time. The specific mechanism for a

return of surplus capital will be determined should an additional

return be deemed appropriate.

Year ended

30 June 2024

£m

Year ended

30 June 2023

£m

Shareholder funds 815.1 709.7

Less: goodwill, intangibles and

other deductions

(42.0) (54.7)

Tangible capital 773.1 655.0

Less: provision for dividend (142.2) (136.6)

Qualifying regulatory capital 630.9 518.4

Less: estimated regulatory

capital requirement (282.2) (248.3)

Capital held above regulatory

minimum before management

buffer 348.7 270.1

Total attributable shareholders’ equity, as at 30 June 2024,

made up of share capital, share premium, retained earnings

and other reserves, increased to £815.1 million (2023: £709.7m)

due to profit in the year exceeding the dividends paid.

HL plc has four subsidiary companies authorised and regulated

by the FCA. The FCA’s Investment Firm Prudential Regime (IFPR)

applies to the Group and HL completes this assessment through

the Group Internal Capital Adequacy and Risk Assessment

(ICARA) processes. Our assessment of HL’s capital requirements

takes account of the regulatory requirements.

Consistent with the IFPR requirements, HLAM is specifically

required to disclose regulatory capital information; this is

available on the Group’s website at https://www.hl.co.uk/

investor-relations.

Capital Management Framework and Dividend

Dividend (pence per share)

2024 2023

Interim dividend paid 13.2p 12.70p

Final dividend proposed 30.0p 28.80p

Total dividend 43.2p 41.50p

In line with guidance, the Board has proposed an increased

dividend of 30.0 pence per share (2023: 28.8 pence per share).

This takes the total ordinary dividend per share for the year to

43.2 pence (2023: 41.5p)

Amy Stirling

Chief Financial Officer

14 August 2024

OPERATING AND FINANCIAL REVIEW CONTINUED

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

CORPORATE RESPONSIBILITY INTRODUCTION

CORPORATE RESPONSIBILITY

It’s not only what we do, but the way in which

we do it that also has a significant impact on

our clients, our colleagues, the environment

and our community.

Therefore, we are embedding Environmental,

Social and Governance factors in our

operations and investments to ensure a

more sustainable management of our business

model. This is key for building trust in our

brand, products and services, and helping

our clients reach great outcomes.

Our Corporate Responsibility approach

has been informed by the UN Sustainable

Development Goals (UNSDGs), as set out

in the Responsible Business section of the

HL website.

We are committed to aligning our impact

from our operations and investments to the

Paris Agreement.

Corporate Responsibility is

at the core of our purpose,

which is to make it easy for

people to save and invest

for a better future.

Aims of our Corporate Responsibility approach

Embed climate

considerations

into our investment

management and

stewardship activities.

Embed ESG

considerations

throughout our

engagement among

our colleagues, clients

and wider stakeholders.

Make HL a great

place to work, where

colleagues have equal

opportunities and can

be their true selves.

Support our local

community and help

build financial resilience

across the UK.

Meet the goals of the

Paris Agreement to

limit global warming

to 1.5ᵒC and achieve

net zero emissions no

later than 2050.

FY24 Highlights

• Published our first entity-level and

product-level TCFD reports, increasing

the transparency of climate-related

risks and opportunities of our assets

under management.

• Launched our new Stewardship and

Engagement report covering our HL

funds and investment solutions, as well

as our Company-wide initiatives.

• The Bristol Financial Resilience Action

Group has given 25,000 households

across Bristol access to free financial

education tools and support with 1,300

employees having their employer pension

contributions increased.

• The HL Foundation passed the milestone

of distribution of over £1,000,000 since

its establishment in 2016.

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

CORPORATE RESPONSIBILITY

INTRODUCTION CONTINUED

Our approach

We’re proud of the progress we’ve made, but

are aware that there’s always more we can do.

Our Corporate Responsibility approach breaks

down our areas of focus into four categories:

բ Responsible Platform

բ Responsible Fund Manager

բ Responsible Business

բ Responsible Employer

All companies should positively contribute to

society as a Responsible Business and foster

an inclusive culture and support colleagues

as a Responsible Employer.

Above and beyond this, as the UK’s largest

D2C investment platform looking after £155.3

billion on behalf of 1.8 million clients, we have

a responsibility to support our growing client

base as a Responsible Platform, helping

clients achieve good outcomes, encouraging

more people to start saving and investing

and providing them with the information

they need to invest in line with their values.

We also manage over £10 billion on behalf

of investors as a Responsible Fund Manager.

We continue to develop our approach and,

this year, have developed an ESG data

tool. This new tool provides more insight to

fund managers and analysts and has helped

to bolster our approach to ESG risk monitoring

and engagement.

Our Corporate

Responsibility

Approach

Responsible Platform

Our efforts to ensure that we enable clients to get

the right outcomes, providing the insight they

need to save and invest in line with their values

Page 33

Responsible

Fund Manager

Our focus on ensuring that

we manage money in a

responsible way to ensure

sustainable long-term

returns for clients and society

Page 35

Responsible Employer

Our strategy to make HL the best place to

work for our colleagues, ensuring we build

an inclusive and diverse culture for all

Page 38

Responsible

Business

Our actions to support

the local community and

build financial resilience

across different

stakeholder groups

Page 36

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

CORPORATE RESPONSIBILITY

RESPONSIBLE PLATFORM

Our broad proposition and

expert insight and guidance

supports our clients in

reaching good outcomes

and helps them to save and

invest in line with their values.

Our client proposition

We have a broad proposition which supports

clients – whatever their knowledge, experience

and needs – in better managing their financial

health and wealth across their lifetime and

helps them develop their understanding of

savings and investments through our expert

content and research.

Last year, we published over 1,000 pieces of

content, analysis and research online, helping

to build our clients’ knowledge and confidence

when it comes to saving and investing. We

covered topics from the general election to the

AI boom, including providing updates through

our new live news service, HL Live, which has

had over 34,000 visits since it was launched

in February.

We have also continued to work with

academics from Nottingham and Warwick

Universities to innovate on the delivery of

information to clients to further improve the

outcomes they achieve. We have been testing

different approaches, such as the framing of

advice and guidance to ensure clients get the

service that’s right for them and using ‘people

like you’ messaging, and early results have

been positive.

You can find out more about how we’ve

developed our proposition on pages 6 to 21.

Our focus on great client outcomes

Client outcomes have always been at the heart

of what we do. We’re confident that we are

delivering good client outcomes, and that our

future business strategy is aligned with the

expectations of the FCA’s Principle 12. We’re

satisfied that appropriate action is being taken

where we’ve identified opportunities to further

improve outcomes and enhance alignment with

the detailed requirements of the Duty.

Our managed portfolios and ESG tools

With a focus on helping people build a

financially secure future, we understand the

importance of providing our clients with the

tools they need to make investment decisions

right for them, including ESG considerations,

insights and guidance.

Over the past year, we have:

բ Increased transparency of the climate

impact and governance of our managed

portfolios by publishing our HLAM TCFD

entity level and product level reports.

բ Provided responsible investment insights

and guidance, through our Responsible

Investment Hub which has been updated

to align with Sustainability Disclosure

Requirement (SDR) regulations.

բ Ensured compliance with our ESG Investment

Policy across all our investment solutions.

բ Reported the results of our stewardship

activities in our Stewardship and

Engagement Report.

Our ESG Investment Policy is

available on our Responsible

Investment Hub www.hl.co.uk/

funds/responsible-investment

Our Stewardship and Engagement

Report is available at www.hl.co.uk/

funds/hl-funds/hl-building-blocks/

other-documents

Last year, we published over

1,000 pieces of content,

analysis and research online,

helping to build our clients’

knowledge and confidence

when it comes to saving

andinvesting.

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

CORPORATE RESPONSIBILITY

RESPONSIBLE PLATFORM CONTINUED

Empowering women through

our Financially Fearless initiative

Our Financially Fearless initiative is

designed to empower women at every

stage of their financial journey, build financial

resilience and provide practical paths to

financial independence.

Over the past year, we have:

բ Established ourselves as a thought leader

in the field, partnering with key networks

of women across different industries

and cohorts.

բ Launched a first-of-its-kind report, delving

into the minds of confident female investors

and encouraging other women to follow suit.

բ Held our first in-person event, as well as

being invited to attend other events as

key speakers.

բ Delivered regular educational content to

our community through social channels

and emails.

բ More than doubled the number of

subscribers to our weekly newsletter.

Developing our accessible platform

HL’s goal is to help everyone save and

invest for a better future, regardless of any

vulnerabilities or accessibility needs.

Over the past year, we’ve:

բ Provided training to colleagues in roles

that help to capture the feedback and

experience of clients with accessibility

needs, and to those who lead our Product

teams so as to ensure accessibility

is prioritised.

բ Built new parts of our website with

accessible design principles at the fore and

have had this work audited by a specialist

third party.

բ Partnered with third parties, like GamCare

and Surviving Economic Abuse, to

learn about best practice in their areas

of expertise and how we can better

support our clients.

Cyber security

As an online platform, we hold significant

amounts of data relating to our clients,

products and services. We recognise that

protecting this information and safeguarding

our clients is critical and, therefore, have

built out significant cyber security capability,

processes and controls to ensure resilience

as we continue to scale.

Our security processes are aligned with

industry best practice and with NIST CSF.

We conduct regular internal security audits,

controls tests, risk assessments, vulnerability

assessments and security testing. We are

continually evolving and enhancing our

approach to cyber security as the external

threat-landscape evolves and deliver regular

cyber security training and awareness-raising

initiatives to colleagues, who are a key line

of our defence.

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

CORPORATE RESPONSIBILITY

RESPONSIBLE

FUND MANAGER

As a Responsible Fund

Manager, ESG factors have

been integrated into our

investment processes for

several years now. However,

best practice is continually

evolving, and we’ve

developed our approach too.

ESG data tool

We developed an ESG data tool which

aggregates ESG data from several sources.

This provides a new level of insight for our

fund analysts and managers, enhancing the

challenge they can provide to the third-party

fund managers we invest with.

Engagement

We’ve bolstered and formalised our

engagement efforts, defining three

engagement streams:

բ ESG risk monitoring – engagement with

third-party managers relating to ESG Policy

adherence.

բ HL’s core engagement themes – set out

by our experts: climate change, community

relations and remuneration.

բ Client-led engagement theme – highlighted

in our ESG investor survey, deforestation

was the primary theme HL clients asked

us to engage on.

To boost our engagement efforts, we joined

several collective engagement schemes,

including the Climate Action 100+ initiative and

the Investor Policy Dialogue on Deforestation

(IPDD). Our work on improving our engagement

approach culminated in the release of our

2023 Stewardship and Engagement Report,

which provides more detail on our engagement

approach, as well as engagement and voting

case studies.

Transition plan

We’ve made significant progress in

understanding our Scope 3 Financed Emissions

(Category 15) associated with our portfolio of

HL Funds. We’ve used this insight to establish

a Net Zero Transition Plan, which includes

a medium-term carbon intensity reduction

target covering our equity and corporate

bond investments.

Our funds

In our HL Funds, we manage more than £10

billion of assets of behalf of our clients and

our actions as a Responsible Fund Manager

become increasingly important as this

number grows.

Our HLFM entity and product-level TCFD

reports explain how we take climate

considerations into account across our

Portfolio Funds, Portfolio Building Blocks and

HL Select Equity Funds. An overview of our

emissions can be found in our climate-related

financial disclosures on page 47–48.

Our actions as a Responsible

Fund Manager become

increasingly important

asourHL Funds grow.

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

CORPORATE RESPONSIBILITY

RESPONSIBLE

BUSINESS

We focus our Responsible

Business work on driving up

the financial resilience of our

colleagues, our community

and our clients.

Purpose-led businesses work with others to

solve wider societal issues and we demonstrate

our Responsible Business credentials through

building financial resilience. We care for each

other, our clients and our community.

Financial resilience and education

HL’s Savings and Resilience Barometer, created

in collaboration with Oxford Economics, pools

data from several big official sets, including

from the ONS and the FCA, and uses economic

modelling to analyse the financial resilience

of households across the nation against our

5 To Thrive pillars.

These pillars are:

բ Control your debt

բ Protect you and your family

բ Save a penny for a rainy day

բ Plan for later life

բ Invest to make more of your money

In addition to the six-monthly Barometer

reports, we have also published ‘deep dive’

analysis on focused areas – our most recent

report focused on the ‘Effective use of money’

and, in September 2023, we explored the

position of the self-employed in more detail.

The outputs of this work allow HL to shine a

light on the need for policymakers to think

holistically about financial resilience and help

us to better design products for clients.

Bristol Financial Resilience Action Group

A key focus of our Responsible Business work

is driving up financial resilience in Bristol.

This includes building on our existing 5 to

Thrive information and tools through the

Bristol Financial Resilience Action Group,

a free initiative currently providing 19 Bristol

employers with a programme to drive financial

resilience in their 25,000 employees.

Tangible progress is being made, and so far

through the work of the organisations part of

the Bristol Financial Resilience Action Group,

an additional 1,300 households in Bristol have

access to increased pension contributions.

More information can be found in the End

of Pilot Report.

More information can be found at

www.hl.co.uk/bristol-financial-

resilience

The End of Pilot Report can be found

at www.hl.co.uk/__data/assets/pdf_

file/0008/19989287/BFRAG_End-of-

Pilot-Report_May_2004.pdf

Community impact, volunteering

and partnerships

The HL Volunteering Scheme gives colleagues

two paid working days per calendar year to

offer their time, skills and experience to good

causes – in 2024, colleagues volunteered over

2,500 hours.

We run volunteering schemes focused on

building social mobility, improving resilience

and supporting local organisations, such

as Fareshare South West and the Bristol

Sport Foundation, and volunteer in local

primary schools, supporting development

of literacy skills.

In addition to volunteering, we arrange food

donations such as our Christmas Appeal,

which collected 150kg of food to donate to

13 charities in the South West. We also work

with sustainability-focused organisations, such

as YourPark, where we have supported the

rewilding of areas in Bristol city centre.

More information can be found at

www.hl.co.uk/features/5-to-thrive

and our Saving and Resilience

Comparison Tool can be found here:

www.hl.co.uk/features/5-to-thrive/

savings-and-resilience-comparison-

tool

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

HL Foundation

The HL Foundation is HL’s charitable arm

which acts as a focal point for our colleagues’

charitable engagement.

It organises fundraising events, which have

raised money for our Charity of the Year, in

addition to supporting humanitarian crises

in alignment to the Disasters Emergency

Committee appeals. Alongside colleague

fundraising, the HL Foundation receives

donations through both HL plc and

payroll giving.

Over the past year, we have focused on

strengthening our governance and leadership,

welcoming four individuals as trustees,

which included two independent trustees.

Their fresh perspectives and insights enhance

our governance, ensure effective decision-

making and strengthen our strategic direction.

The collective efforts of our colleagues,

combined with donations from HL plc, resulted

in £200,000 being raised for worthy causes last

year. We also celebrated a significant milestone

– the distribution of over £1,000,000 since the

Foundation’s establishment in 2016.

Tax strategy

Integrity and good conduct are central to our

culture, and this means we aim to comply with

both the spirit and the letter of the law and

are committed to conducting our tax affairs

in a clear, fair and transparent way.

Taxes provide public revenues for government

to meet economic and social objectives. Paying

and collecting taxes is an important part of our

role as a business operating responsibly within,

and contributing to, society. We aim to comply

with all our tax filing, tax reporting and tax

payment obligations.

We seek to maintain an open, honest

and positive working relationship with

tax authorities, and we do not undertake

aggressive tax planning. Our corporation tax

and employer’s National Insurance paid in

respect of the year ended 30 June 2024 was

£115.2 million (FY23: £94.6 million). In addition,

we pay other taxes such as VAT, stamp duty

and business rates.

Our full tax strategy is available at:

www.hl.co.uk/about-us/tax-strategy

Human rights and modern slavery

We are committed to being a responsible

business and upholding human rights.

Our Human Rights Policy supports the

key principles established in The Universal

Declaration of Human Rights, The International

Covenant on Civil and Political Rights, The

International Covenant on Economic, Social

and Cultural Rights and The International

Labour Organization’s Declaration on

Fundamental Principles and Rights at Work.

We continue to embed respect for human

rights in all our operations and aim to ensure

our business operations are free from modern

slavery, exploitation and discrimination.

There have been no recorded incidences of

modern slavery in our supply chain, but we are

not complacent. We have created a Supplier

Code of Conduct that has been shared with

all existing suppliers, and all new suppliers

when onboarding services to Hargreaves

Lansdown. The Code covers many areas and

includes a section on Human Rights where

we ask that the supplier should comply with

all internationally recognised human rights

understood, at a minimum, as those expressed

in the International Bill of Human Rights and the

principles concerning fundamental rights set

out in the International Labour Organization’s

Declaration on Fundamental Principles and

Rights at Work.

Within our award-winning platform, fund

groups are subject to our Platform Terms of

Business which includes a requirement to

comply with the Modern Slavery Act 2015.

Furthermore, we are aware of modern slavery

considerations as part of our anti-money

laundering activities, as a financial institution

found to be holding the proceeds of modern

slavery and human trafficking will be liable for

money laundering offences. We continue to

be a signatory of the United Nations Principles

of Responsible Investment and consider

environmental, social and governance factors,

including slavery and child labour, when making

our investment decisions. We have an Anti-

Slavery and Human Trafficking Policy which

applies to everyone working for us, or on our

behalf in any capacity.

All colleagues are reminded of this policy and

its importance annually. It is available on our

internal intranet and referred to in posters

around the office. Whilst the Board of Directors

has overall responsibility for this policy, it

applies to every HL colleague. Our Modern

Slavery Act Statement and Human Rights

Policy are available on our website.

Anti-bribery and corruption

HL maintains a full suite of policies and

procedures to guard against bribery and

corruption. This includes an Anti-Bribery Policy,

outlining the offences, responsibilities of all

colleagues and clear reporting procedures;

a Whistleblowing Policy and process; Anti-

Money Laundering and Market Abuse policies;

and procedures for dealing with, making and

accepting gifts and hospitality.

All colleagues undertake bespoke training

programmes, at least annually, for all these

areas, in addition to having access to online

guidance and procedures aiding awareness.

Colleagues can access policy and guidance

statements via the Company intranet and

these procedures are reviewed and updated

on a periodic basis by the Senior Managers

responsible for them.

Charity of the Year: FearFree

Our most recent Charity of the Year to

be chosen by colleagues is FearFree.

FearFree supports individuals dealing with

domestic abuse, sexual violence, and

stalking. Through our partnership, we’ve

amplified their vital work, providing hope

and resources to those in need.

Supporting financial education:

Just Finance Foundation

Recently established, the Just Finance

Foundation focuses on providing financial

education and training materials to schools

across the UK. By supporting this initiative,

we empower future generations with

essential financial literacy skills.

CORPORATE RESPONSIBILITY

RESPONSIBLE BUSINESS CONTINUED

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

CORPORATE RESPONSIBILITY

RESPONSIBLE

EMPLOYER

Our colleagues are motivated

by delivering for our clients

and the brilliant people they

work with.

This has been a year of transition as we

go through our transformation under new

leadership. Throughout this, we’ve supported

our colleagues through change by listening

to their views and seeking feedback, keeping

them updated on our strategy development

and providing regular touchpoints with our

leaders, enabling opportunities and access

to development, and fostering the important

sense of community and client-centricity at

HL that makes us unique.

An important aspect of this was involving

colleagues in the development of our new

purpose and values – this was a comprehensive

exercise where colleagues were invited to

contribute to a survey, followed by in-depth

focus groups and interviews ensuring that they

resonate and are authentic for HL, while driving

the right behaviours that enable us to deliver

value for our clients.

We’ve also begun our focus on strengthening

our foundations and making things easy for

colleagues – a key example was the rollout

of our Workday Help tool as a one-stop shop

for people-related information.

These changes will help us drive a performance

culture as we continue to make HL a great place

to work, develop and fulfil career potential.

Our commitment to Inclusion

and Diversity

Our commitment to Inclusion and Diversity

(I&D) is driven by our desire to attract and

retain the best talent to meet our needs and

our view that a more representative workforce

will help us deliver the best outcomes for

our clients. We believe that a workforce with

more diversity of thought and experience can

generate more innovative ideas, make better

decisions and transform more effectively.

Aligned to our Strategy and underpinned

by our Purpose and Values, we have three

I&D priorities:

1. Deliver on our agreed I&D representation

targets;

2. Broaden our workforce data and insight

to enable a data driven approach; and

3. Intensify our focus on inclusion as a core

expectation of life at HL.

This year, to deliver these priorities, our focus

is on the following areas which we believe will

help us to unlock the most progress.

բ Recruitment: we are piloting changes to

our recruitment process to better embed

diversity in our candidate shortlists through

a check and challenge approach.

բ Progression: this year we have launched

new programmes focused on developing

future leaders from under-represented

groups. Our new Ascent Programme,

launched in partnership with diversity

specialists Talking Talent, will support

a cohort of mid-level talent to build

their confidence and skills to progress

their careers. We are also pleased to be

participating in the EPOC Board Fellowship

Programme which aims to increase ethnic

minority representation on Boards.

բ Functional approach: we are modelling

clearer functional goals for business areas

within HL and working with leaders to

get clear plans in their areas to support

organisational Objectives and Key

Results (OKRs).

We believe in managing our commitment

to I&D in the same way as we approach any

other business objective: by aligning it with

and embedding it in our strategy, by defining

accountability and by measuring progress.

We set targets for female, ethnic minority

and Black representation in 2021, for both our

senior and mid-level populations. These were

initially targets to be achieved by December

2025, but we have extended the target date

to June 2026 to align with the end of our

financial year.

The targets for increasing the representation

of women and ethnic minority groups at

senior levels are built into the OKRs for the

organisation to ensure we drive progress

against them.

Performance against all of our I&D targets

is tracked via a quarterly dashboard which

is shared with the Executive Leadership

Team, as we know that executive buy-in

and accountability is crucial to achieving

sustainable change.

More information about our Inclusion

and Diversity approach and initiatives

can be found at:

www.hl.co.uk/corporate-social-

responsibility/our-people

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

CORPORATE RESPONSIBILITY

RESPONSIBLE EMPLOYER CONTINUED

Female representation

We remain committed to increasing the

proportion of women at HL and aspire to

hire more, promote more and retain talented

women within HL.

Internal commitments

Our 2026 targets for senior and mid-level

female representation are 36–40% for both

groups. As at 30 June 2024, we are at 34.0%

for senior female representation and 35.7% for

mid-level female representation, both of which

are on track to meet our 2026 target range.

External commitments

We are proud signatories of the Women in

Finance Charter where we report annually,

in August, on progress against our target for

senior female representation of 36–40% by

2026. In the HM Treasury Women in Finance

Charter Annual Review 2023, we reported

34.5% of senior management roles were held

by women, up from 31.6% the year prior.

We have exceeded the FTSE Women Leaders

target of 40% women on Boards and are proud

to have a female Chair, Chief Financial Officer,

Senior Independent Director and a majority of

female Board Committee Chairs. In our 2023

submission, reflecting data as at 31 October

2023, we reported that women made up 38.3%

of the Executive Leadership Team and its direct

reports, up from 30.2% in our 2022 submission.

Our 2023 Gender Pay Gap (GPG) report,

which shows data as at 5 April 2023, showed

that our mean and median Gender Pay Gap

had widened since the previous year, with

the mean moving from 7.8% in 2022 to 9.3%

in 2023 and the median moving from 13.7%

to 19.1%. Our mean and median Bonus Gap

narrowed year-on-year.

Although we had seen an increase in the

proportion of women in senior roles, the

widening Gender Pay Gap was driven primarily

by high levels of recruitment, predominantly of

men, into roles commanding a market premium

and a greater proportion of senior men in larger

roles with higher salaries.

To address this, we continue to be focused

on ensuring our recruiters and recruitment

partners are committed to finding gender-

diverse talent in the market and will reject

candidate long-lists that lack sufficient

diversity. And, as outlined above, our current

priorities for the year include actions to help

grow our own mid-level diverse talent into more

senior roles.

We recognise that some areas of the business

face a greater challenge in attracting female

talent and play a disproportionate role

on our Gender Pay Gap, for example, our

Digital function. This is why another of our

current priorities includes getting clear on

our aspirations for diverse representation

by function, which will be supported by

targeted plans.

Our results underline that progress in I&D is

rarely linear and that, whilst we are moving in

the right direction in many areas, there is still

more to do. We continue to closely monitor

and improve our I&D-related data to ensure

we are taking the actions that will drive the

most progress.

Ethnic minority representation

Increasing the ethnic diversity of our workforce

has been a priority at HL since 2020. We are

committed to attracting and retaining the

best talent and recognise that ethnic minority

groups (colleagues from Black, Asian and

minority ethnicities), are under-represented.

Internal commitments

We have agreed 2026 targets for senior and

mid-level colleagues from ethnic minority

groups and also a specific target for Black

representation.

We are able to set targets and measure

progress against them as most colleagues

voluntarily share their ethnicity with us – 87.4%

of our colleagues have shared their ethnicity

or have selected ‘Prefer not to say’ in our

HR system.

As we have progressed on our commitment

to I&D, we have refined the way we calculate

ethnic minority representation. In previous

years, we have calculated progress against

our target based on those that have

disclosed. However, in line with guidance

from the government around Ethnicity Pay

Gap reporting, we are now calculating as

a percentage of colleagues as a whole.

բ Our target for senior ethnic minority

representation is 6–10%. As at 30 June

2024, we are on track at 7.9%.

բ Our target for mid-level ethnic minority

representation is 8–12%. As at 30 June 2024

we are on track at 9.8%.

բ Our target for Black representation is

2–4% across both senior and mid-level

colleagues. As at 30 June 2024, we are

on track for both, we are at 1.4% for senior

Black representation and 1.5% for mid-level

Black representation.

Full details of our Gender Pay Gap

report can be found at

www.hl.co.uk/corporate-social-

responsibility/our-pay-gaps

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

CORPORATE RESPONSIBILITY

RESPONSIBLE EMPLOYER CONTINUED

External commitments

The Board continues to meet the Parker

Review recommendation to have at least one

Director from an ethnic minority background.

In 2023, the Parker Review announced

an extension of their targets and asked

organisations to set ethnicity targets for their

senior management teams to be achieved by

2027. The Parker Review’s definition of senior

management teams is Executive Committees

and their direct reports. At HL, we already

have senior ethnic minority targets in place

which apply to a broader leadership population,

including ‘Heads of’ and up to and including the

Board. Given these are designed to increase

representation of Black, Asian and minority

ethnic groups and are well embedded in our

business priorities, we do not plan to set

additional targets at this time. We continue to

review our target approach to ensure it delivers

the outcomes we want to achieve.

This is the second year we have produced an

Ethnicity Pay Gap (EPG) report and the first

in which we have chosen to disaggregate

the data in order to get richer insight into the

barriers faced by different ethnic groups. Our

overall EPG measures the difference between

ethnic minority (Black, Asian and minority

ethnicities) and non-ethnic minority (White)

colleagues’ earnings.

Our 2023 Ethnicity Pay Gap Report, which

shares data from 5 April 2023, showed that

our mean and median Ethnicity Pay Gap

had narrowed since the previous year, with

the mean moving from 19.6% to 12.2% and

the median from 21.2% to 20.3%. Our mean

and median Bonus Gaps also narrowed

year-on-year.

Disaggregating our data allowed us to

understand in more detail where we have

differences in average pay between different

ethnic groups and what is driving this

difference. This insight has helped inform

our I&D priorities and ensure we are taking

the right action to narrow the gaps. As

a result of this analysis, we are currently

designing a programme designed to support

the progression of Black colleagues at

more junior roles.

Creating connection and community

One of our strategic priorities is to intensify

our focus on inclusion as a core expectation

of life at HL. This means equipping managers

and colleagues with an understanding of why

inclusion matters and how to create a more

inclusive environment.

Our Colleague Networks play an important

role in fostering inclusion and belonging –

their purpose is to encourage inclusivity,

empower colleagues to use their voice, support

network members with signposting, and raise

awareness and consult with HL to effect

change in our policies and practices. Each

network is supported by an Executive sponsor,

to ensure their activities get the visibility and

support they need to have the greatest impact.

We currently have over 950 members across

our six Colleague Networks:

բ Chronic Conditions and Disabilities

բ Cultural Diversity Group

բ Gender Diversity Group

բ Kaleidoscope (LGBTQ+)

բ Sustainability

բ Wellbeing

We also have various community groups

covering interests such as sports, board

gaming, working parents, carers, religion

and politics.

To provide colleague-to-colleague support we

have Mental Health First Aiders, Menopause

Champions and Endometriosis Champions.

Creating an inclusive working environment

has continued to be a focus for this year, with

specific managerial and leadership training

taking place in recognition of their importance

in making HL an inclusive place to work.

Our policies and processes continue to be

reviewed to ensure they support equity and

inclusion and help us attract the broadest

pool of talent.

This year, we’ve focused on making it

easy for our colleagues to find information

around policies and processes by launching

Workday Help. This is a centralised platform

for colleagues and managers to access HR

support, manage their people processes and

find information all in one place. This work is

part of our continuous improvement of the

colleague experience at HL, aimed at being

more responsive to our colleagues as well as

supporting self-sufficiency and knowledge in

people-related matters amongst our managers

and colleagues.

Getting insight directly from colleagues is an

important pillar of inclusion. We run regular

‘Listening Sessions’, which facilitate different

colleague groups sharing their experiences

directly with Executive Committee members.

Our Colleague Survey gives a snapshot

of colleague sentiment around Inclusion

and Diversity, with results of the 2024

survey showing that 83% of colleagues

feel positive that HL values and promotes

employee diversity.

We have voluntarily published

our Ethnicity Pay Gap for the

second year, and are pleased

to have enhanced our analysis

and made progress.

Claire Chapman

Chief People Officer

41%

Female

41%

Female

59%

Male

59%

Male

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

CORPORATE RESPONSIBILITY

RESPONSIBLE EMPLOYER CONTINUED

Reward

Our approach to reward is key in how we

unleash the potential of our people and drive

a high performance and inclusive culture.

Our refreshed People Strategy will enable

us to reset our foundations and then drive

performance. The way our Performance and

Reward Philosophy and strategy supports this

will be a key focus over 2025, starting with

the alignment of colleague Objectives and Key

Results (OKRs) to our five strategic priorities.

Over 2024, we have continued to focus on

clear, fair and transparent pay and reward.

We use independently benchmarked pay and

benefits data to ensure we pay our colleagues

fairly for the work they do and we are proud

to be accredited with the Living Wage

Foundation applying the Real Living Wage to all

colleagues – this includes those on internships,

placements or apprenticeships.

We believe that our colleagues should be

able to share in the success of our business

and all colleagues are eligible to sign up to

our Save as You Earn (SAYE) scheme. As at

30 June 2024, 38% of eligible colleagues are

currently participating in one of our existing

Sharesave Schemes.

To complement our direct financial rewards,

we provide company matched pension

contributions, which includes a double

matching scheme, to further encourage

our colleagues to save for their retirement,

and extended life insurance protection. HL

Rewards, our flexible benefits scheme, offers

a comprehensive range of protection, health,

financial and lifestyle benefits to ensure

we provide a benefits package that our

colleagues value.

As at 30 June 2024 As at 30 June 2023

Board of

Directors

Other senior

management

Total

employees

(FTE)

Board of

Directors

Other senior

management

Total

employees

(FTE)

Female 5 (50%) 23 (41%) 1,027 (41%) 5 (45%) 16 (28%) 927 (41%)

Male 5 (50%) 33 (59%) 1,457 (59%) 6 (55%) 41 (72%) 1,350 (59%)

1 Other senior management is defined as an employee who has responsibility for planning, direction or controlling the activities

of the Group, or a strategically significant part of the Group, other than the plc Board of Directors and the Non-Executive

Director of HLFM, who is not considered a member of the workforce’.

Our workforce

Total workforce 2024: 2,484

Total workforce 2023: 2,277

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

CORPORATE RESPONSIBILITY

RESPONSIBLE EMPLOYER CONTINUED

Building capability

Our colleagues told us that the disruption

and opportunities driven by our digital

transformation meant they needed the right

knowledge and skills to drive innovation and

growth, at the speed and scale of need.

Our colleagues also told us that skilled and

supportive leaders and managers remained

vitally important for HL, to maximise the

potential of that technology and deliver

sustainable growth through both people

and digital skills.

In response, this year we have continued to

grow our learning infrastructure, making it easy

for colleagues to access the development they

need, at the time they need it and in a way

that works best for them:

բ Our learning platform providing 24/7 access

to thousands of development courses to

all colleagues has seen activation rates

increase month-on-month, with targeted

initiatives driving a 36% increase of users

viewing content and a 26% increase of

average hours per viewer

բ HL’s Mentoring Scheme continues to grow,

with senior leaders now representing over a

third of our mentoring population and ready

to share skills, knowledge and expertise

with our junior colleagues

բ A further 46 people managers enrolled

on HL’s six-month management

development programme, strengthening

essential skills in managing and leading

high-performing teams

բ This year saw the launch of our digital

learning channel ‘Better Learning’, facilitating

peer-to-peer learning and making it easy

to share knowledge across the business

in real time

բ In response to emerging skills needs, we also

launched 19 brand new Learning Pathways,

co-created with our Colleague Forum

We are also making key changes to our suite

of eLearning modules, improving the user

experience for our colleagues, whilst also

driving better outcomes for our clients and

our business.

Early careers and apprenticeships

We recognise the importance of building

the next generation of skilled and motivated

talent for future leadership and expert roles

and have evolved our programmes to support

our strategy.

We have grown our apprenticeship offering

significantly in recent years and are proud

to have three ‘live’ apprenticeship schemes,

with a new Cyber Security scheme starting in

September. In total, we’ve hired 28 apprentices

into the business in this financial year, creating

roles for local school-leavers and growing our

own pipeline of diverse talent.

We continue to create other opportunities for

the development of young people in Bristol and

the surrounding area through:

բ Our Strive internship scheme and our

commitment to the nationwide 10,000 Black

Interns programme;

բ Our Industrial Placements scheme; and

բ Our partnership with Bristol Future Talent

Partnership to offer work experience for

local schools.

Colleague engagement and listening

In our most recent colleague survey, 82% of

colleagues gave us their view, the highest

response rate we’ve achieved (May 2023: 80%).

Our engagement metric is 62. Since the

beginning of the pandemic in 2020, this score

has remained relatively flat. However, this is

not unexpected given the uncertainty of that

time and the significant period of organisational

change and new leadership we have been

going through since. We expect to see this

score improve again as the new leadership

is embedded in the business.

A positive from our survey was how strongly

our colleagues rate their relationships with

their managers which has continued to

improve – questions around coaching, giving

feedback and recognition all improved on the

previous year.

With a period of significant change, regular

communication and engagement with our

colleagues has been essential. We introduced

our new CEO through a comprehensive

communications campaign, including running

listening sessions for colleagues to sign up

and share their feedback directly. We have

continued to run these sessions bi-monthly,

so that different groups of colleagues have the

opportunity to share their feedback in person.

We’ve introduced and focused on building

a new senior leadership team (SLT) of just

over 50 colleagues who are responsible and

accountable for our strategy and leading our

colleagues. This group is essential to evolving

our approach, cascading information and

motivating our wider colleague population.

Additionally, we’ve introduced six-weekly

Colleague Updates where our CEO and other

members of our SLT update colleagues on

our strategy and take the time to answer their

questions. These events have been highly

rated with over 74% of colleagues regularly

saying they have improved their understanding

of our strategy.

We’ve continued to make improvements to our

other communication channels including:

բ Relaunching our intranet as HL Home – a

place for colleagues to find or be signposted

to the information and tools to do their jobs

բ Running numerous engagement events in

our office and online for topics such as our

annual benefits window, learning at work

week, and showcasing different teams to

promote understanding of the different

careers available in HL

բ Producing engaging visual and video

content on posters and digital screens

around the office

We have continued to engage and invest in our

Colleague Forum. Elected colleagues represent

their different business areas and the Forum

is chaired by Colleague Representatives. In

addition to providing an opportunity to consult

with colleagues on our executive and wider

workforce pay approach, it provides a two-way

feedback channel on our strategic priorities

and a route for colleagues to raise their own

topics for debate. During the year, the Forum

members have had external training on how to

be effective representatives and have provided

feedback to help us improve the Forum’s ways

of working. They have provided insight and

feedback on topics ranging from our purpose

and values, through to increasing usage

of our learning platform, and encouraging

engagement with the HL Foundation.

The Forum allows us to co-create People

change, keeping colleagues and clients at the

heart of what we do.

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

CORPORATE RESPONSIBILITY

TCFD consistency statement

As required by paragraph 8(a) of Listing Rule 9.8.6R, we set out in the table below our statement of consistency

with the TCFD Recommendations and Recommended Disclosures. The preparation of our disclosures have been

informed by section specific guidance and other TCFD guidance materials, including the TCFD Annex.

TCFD recommendation Status

Governance

Disclose the

organisation’s

governance around

climate-related risks

and opportunities.

Describe the Board’s oversight of climate-related risks and opportunities. We have reported how the Board, and its committees oversee our climate-related risks

and opportunities on page 44. Our ESG Taskforce feeds into our Executive Committee

as shown on our overarching diagram on page 71.

Describe management’s role in assessing and managing climate-related risks

and opportunities.

We have reported management’s roles and responsibilities in assessing and managing

climate-related risks on page 44.

Strategy

Disclose the actual

and potential impacts

of climate-related

risks and opportunities

on the organisation’s

businesses, strategy and

financial planning where

this such information

is material.

Describe the climate-related risks and opportunities the organisation has

identified over the short, medium and long term.

We have disclosed the climate-related risks identified over the short, medium, and long

term on pages 45 to 46.

Describe the impact of climate-related risks and opportunities on the

organisation’s business, strategy and financial planning.

We have detailed the financial impact and our strategic response for each risk identified

on pages 45 to 46.

Describe the resilience of the organisation’s strategy taking into consideration

different climate scenarios, including +2 degrees or lower.

We have performed scenario analysis over our identified risks in our ERM system,

details of which have been disclosed on pages 45 to 46. This year the focus has

been on exploring the financial impact of climate scenarios, noting a lack of industry

standardisations to quantitative analysis, and we aim to include this in future reports.

Risk

management

Disclose how the

organisation identifies,

assesses, and manages

climate-related risks.

Describe the organisation’s processes for identifying and assessing climate-

related risks.

Our approach to the identification, assessment and management of climate-related

risks is integrated into our Group Enterprise Risk Management Framework on pages 51

to 58. The Group adopts a robust risk management structure based on the ‘Three Lines

of Defence’ model to ensure clear accountability for all risk management activities across

the organisation.

In FY24, we have recognised climate change as a principal risk.

Describe the organisation’s processes for managing climate-related risks.

Describe how processes for identifying, assessing, and managing climate-related

risks are integrated into the organisation’s overall risk management.

Metrics and

targets

Disclose the metrics

and targets used to

assess and manage

climate-related risks

and opportunities

where material.

Disclose the metrics used by the organisation to assess climate-related risks

and opportunities in line with its strategy and risk management process.

We split our metrics by the impact of our operations and the impact of our investments.

We have reported the metrics on pages 47 and 48.

Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas

emissions, and the related risks.

We disclosure our Scope 1, 2 and 3 categories of Scope 3. We aim to report our full

emissions profile in FY25 after completing our review of calculation methods.

Describe the targets used by the organisation to manage climate-related risks

and opportunities and performance against targets.

We have disclosed our targets on page 49.

CLIMATE-RELATED

FINANCIAL DISCLOSURES

Full Partial

Key: Level of disclosures

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

Governance

Our approach to governance around our

climate-related risks and opportunities feeds

into our governance structure on page 71

through our ESG Taskforce.

Board oversight of climate-related

risks and opportunities

The plc Board is responsible for our

overarching Group-wide strategy, including

ESG, climate change and sustainability.

Management’s role in assessing

and managing climate-related risks

and opportunities

Our Corporate Affairs Director has delegated

authority from the plc Board to manage and

assess our ESG strategy, including climate-

related risks and opportunities. Our strategy

is supported by our ESG Taskforce, a cross-

functional working group looking after the

day-to-day activities, including bi-annual Board

updates with progress of targets, risk and

opportunities and new regulations.

Strategy

Our business-wide strategy is underpinned by

reducing our impact on the environment and

becoming lean and efficient with a focus on

providing great outcomes for our clients. You

can read more about our strategy on page 18.

Climate-related risks and opportunities

We have performed an assessment of

climate-related risks included in our Enterprise

Risk Management (ERM) system including

transition

and physical

risks over short,

medium and long-term time horizons under

three contrasting climate scenarios. These

scenarios are hypothetical scenarios to

assist our understanding of how climate

change impacts our business. Performing

this assessment tests that our strategy

can respond to climate-related risks and

that we can take advantage of climate-

related opportunities.

CORPORATE RESPONSIBILITY

CLIMATE-RELATED FINANCIAL DISCLOSURES CONTINUED

Climate scenarios

To assess our exposure to these risks and opportunities we have selected three scenarios based on the framework of Network for Greening

the Financial System (NGFS). We have selected these scenarios as they are used by central banks, including the Bank of England.

Strategic response

Despite the potential impacts from climate change, we remain resilient to climate-related risks and opportunities.

Our opportunities are short to medium term that we aim to take advantage of and we look to continually improve our approach, aligning

to industry standards.

1 Transition risks are the risks associated with moving to a

low-carbon economy or policies to address climate change.

Categories for transition risks include reputation, market,

legal & policy and technology.

Board committee Responsibility FY24 key actions

plc Board The Board is responsible for the development of our strategy

promoting the long-term sustainable success of the business.

Reviewed and approved our Net Zero target for our

financed emissions.

Risk Committee Reviews and advises the Board on changes to the Group’s

risk appetite, risk profile and future risk strategy.

Reviewed and approved our risk appetite statement for ESG

risk and Key Risk Indicators and approved identification of

climate change as a key risk.

Audit Committee Monitors the integrity of the Group’s financial reporting. Reviewed and approved the Group’s TCFD disclosures

and entity and product level disclosures following an Internal

Audit assessment of entity and product level disclosures.

Scenario Risk factors

Policy

ambition

Policy

reaction

Technology

change

Carbon

dioxide

removal

Regional

policy

variation

Orderly (Net Zero)

– 1.5 Degrees Celsius

This scenario is ambitious in nature.

Limiting global warming to 1.5 degrees by

2050 and reaching net zero emissions.

This scenario enforces rigorous climate policies which are

introduced immediately and there is a medium to high use of

carbon dioxide removal to accelerate the removal of carbon

emissions (decarbonisation) from human activities. Physical

risks are relatively low, but transition risks are high.

1.4–1.5°C Immediate

and smooth

Fast

change

Medium-

high use

Medium

variation

Disorderly (Delayed transition)

– 1.6 Degrees Celsius

This scenario assumes global annual

emissions do not decrease until 2030.

Stringent policies are then required to

limit global warming to below 2 degrees.

Emissions would be expected to exceed the carbon budget and

then rapidly decrease. Carbon removal is assumed low increasing

carbon prices. Both transition and physical risks are higher than

a Net Zero scenario after 2030.

1.6°C Delayed Slow/Fast

change

Low-

medium

use

High

variation

Hot house world (Current

policies) – 3+ Degrees Celsius

This scenario assumes current

policies are maintained leading to

high physical risks.

Emissions continue to grow beyond 2050 leading to 3 degree

warming and increased physical risks. There is minimal policy

implementation and a slow change in technology to support

carbon removal.

3°C+ None –

current

policies

Slow

change

Low use Low

variation

2 Physical risks are acute or chronic risks. Acute risks refer to short-

term scenarios that have an immediate impact like flood, droughts

and wildfire and chronic risks refer to longer-term scenarios

including changes to weather pattern e.g. rising temperatures.

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

CORPORATE RESPONSIBILITY

CLIMATE-RELATED FINANCIAL DISCLOSURES CONTINUED

Scenario analysis

Timeframe

Risk Description of risk Potential impact Scenario 0–5 years 5–10 years 10+ years Strategic response

Reputation

The risk that our

stakeholders perceive

us as being unresponsive

to climate-related risks

and are unhappy with our

progress of aligning our

investments and products

with the transition to a

low-carbon economy.

Loss of client trust

and reduced demand

for products and

services leading to

clients directing capital

to other platforms

and poor investor

outcomes.

Orderly

Delight clients, drive growth – We offer a broad range of products

and investment solutions and guidance for our clients on responsible

investing. Content for our third-party funds and investment solutions is

required to include and assess ESG factors and we operate a Conduct

Framework, in which ESG aspects form part of, owned and managed

through the Client Outcomes Function aligning with the expectations

of the Consumer Duty.

Opportunity – Increasing our focus on communications on educating

clients on how to mitigate climate risk. Our clients have identified climate

change as a key issue they would like us to engage on. This has fed into

our engagement themes as outlined in our Stewardship and Engagement

Policy as well as encouraged our membership with Climate Action 100+.

Disorderly

Hot house world

Market

The risk that climate

change or the transition

to a lower-carbon

economy negatively

impacts the global

economy and therefore

the value of assets on our

platform and in our range

of managed investments.

Assets with exposure

to climate-related

risks may be subject

to a decrease in value,

impacting returns

and related revenue

streams.

Orderly

Delight clients, drive growth – Our broad range of investments allows our

clients to hold diversified portfolios and react to changing market trends.

For our managed portfolios and funds, we have an ESG investment

process focusing on ESG risk mitigation. Our TCFD entity and product

reports provide further transparency behind our managed portfolio

and assets.

Opportunity – Increase of sustainable investment solutions and product

information on emissions using data. Incorporating Sustainability

Disclosure Requirements (SDR) into our website and search function

to help accelerate flows into the low carbon economy.

Disorderly

Hot house world

Policy and

legal

The risk that to achieve

a lower-carbon economy

policies and regulations

need to be introduced and

complied with, increasing

our disclosure obligations.

Increase in the cost

of compliance to

meet the regulations

and the potential

impact on product

restrictions.

Orderly

Increase pace and resilience – We have seen growing demand on

regulatory policies for companies worldwide. Increasing our resilience

supports fast paced regulatory changes. Through our regulatory

compliance teams, we horizon scan for policy and legal risks associated

with climate change. Our governance framework allows for upcoming

changes to policy to be tracked through our ESG Taskforce updating

the Board on new requirements.

Opportunity – Engaging early with upcoming policies would enable us

to be a first mover.

Disorderly

Hot house world

Highly likely Possible Unlikely

Key

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

CORPORATE RESPONSIBILITY

CLIMATE-RELATED FINANCIAL DISCLOSURES CONTINUED

Timeframe

Risk Description of risk Potential impact Scenario 0–5 years 5–10 years 10+ years Strategic response

Technology

The risk of failing to adapt

to emerging technology

related to the transition to

a lower-carbon economy,

such as renewable energy,

increased energy efficient

technology and carbon

capture and storage.

Increased operating

costs through

maintaining IT

infrastructure.

Increased energy

costs with increased

energy demand.

Orderly

Increase pace and resilience – Our approach, increasing cloud-based

solutions, supports us in becoming more efficient, reducing the need to

renew outdated IT infrastructure. Removing on premises data centres

will improve our efficiency, reduce office running costs and increase

our capability.

Our core office locations run off renewable energy and we continually

review our property infrastructure to ensure efficiency savings are

being achieved.

Opportunity – Continuing to increase our capability and platform

performance by leveraging economies of scale through efficient

and lean technologies, reducing our energy demand.

Disorderly

Hot house world

Acute

The potential financial

losses that may arise

from the direct impacts

of climate-related

events, such as natural

disasters or extreme

weather events, on

HL’s investments

and operations.

Longer-term changes

in climate patterns

such as flooding,

extreme weather and

higher temperatures

impacting our

operations.

Orderly

Increase pace and resilience & focusing on our people – As part of our

business continuity plans, we consider the effects of adverse weather

and the impact on our operations, supply chain and workforce through

annual due diligence reviews.

We operate a hybrid working model providing operational resilience to

potential impacts.

Disorderly

Hot house world

Chronic

The potential financial

losses that may arise from

the gradual and persistent

impacts of climate change,

such as sea level rise or

changes in temperature

and precipitation patterns,

on HL’s investments

and operations.

Increased cost to the

business due to risk of

flooding at our offices

or reduced employee

productivity.

Orderly

Disorderly

Hot house world

Highly likely Possible Unlikely

Key

Metrics and targets

In FY24 we have extended our reporting to cover further Scope

3 emissions homeworking and are reporting our emissions as

Operational emissions, which shows the impact of our day-to-

day activities and investment emissions, which is the emissions

related to our HL managed Funds.

Our focus this year has been on our emission reduction

and efficiency and to review and improve our approach to

emission calculations. We conducted a review of our data and

recalculated our emissions back to our baseline year (2018).

As our Investment emissions are estimated to make up 99% of

our total emissions, our remaining Scope 3 categories, that have

not yet been reported, have been assessed as immaterial.

Scenario analysis

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

CORPORATE RESPONSIBILITY

CLIMATE-RELATED FINANCIAL DISCLOSURES CONTINUED

Our operational emissions

Tonnes CO

FY24 FY23

Baseline 2018Scope 1 and 2 UK Overseas Total UK Overseas Total

Scope 1 – Gas and refrigerant gases 553 – 553 213 – 213 266

Scope 2 – Purchased electricity

(location-based) 628 26 654 696 27 723 1,255

Scope 2 – Purchased electricity

(market-based) 12 26 38 149 27 176 1,255

Total Scope 1 and 2 emissions

(market based) 565 26 591 363 27 390 1,521

Scope 3

Business travel 100.35 148.9

Employee commuting & working from home 664.67 512.8 –

Total reported operational Scope 3 765.02 661.7

Total outside of Scope emissions* 0.25 – 0.25 0.27 – 0.27 –

Energy usage (kWh)

Gas 1,345,864 0 1,345,864 1,595,066 0 1,595,066 1,443,628

Electricity 3,032,091 123,772 3,160,569 3,362,077 128,478 3,490,555 4,433,597

Total 4,377,955 123,772 4,506,433 4,957,143 128,478 5,085,621 5,877,225

Intensity per FTE (1 and 2) 0.24 0.21

Usage per FTE (1 and 2) 1,762 2,739

Intensity per FTE (3) 0.31 0.36

* Following our data review we have restated our Scope 1 and 2 figures for FY23. Under SECR, the amount reported in FY23 which is now restated respectively for Scope 1 was 876.8 tCO

e, Scope 2 (location

based) 490.4 tCO

e.and scope 2 (market based) 24.9.

* Outside of scope emissions relates to the short term emissions caused through the procurement of biogas.

Methodology and boundary – We calculated our emissions based on the financial consolidation approach. The Group’s carbon footprint was calculated using an operational control approach. Under this

approach, all entities, and associated assets over which the Group has 100% operational control are included under the organisation’s Scope 1 and 2 emission categories.

Calculation – We have calculated our Scope 1 and 2 emissions using primary energy data, where available, and converted this using the official UK Government conversion factors. Where data is incomplete, we

will use primary energy data to estimate our remaining emissions. For business travel emissions we use expense claim data, multiplied by emission factor data. For employee commuting and working from home,

we collected data from staff on their home working and travel arrangements and have combined this with publicly available data to estimate the emissions.

Overview

Progress – Our scope 1 emissions have

increased compared with prior year due to a

one-off refrigerant gas leak which resulted in

514 tCO

e. Outside of this, we have reduced

our gas and electricity emissions against

prior year. The impact of our investment in

renewable energy can be seen in our Scope

2 – Purchased Electricity (market-based) and

outside of scope emission categories.

In FY24, we began to switch off older IT

infrastructure assets, reducing our energy

demand in one of our office spaces, and

we have initiated a review on other energy

saving options.

For our employee commuting emissions,

we have increased our reporting to include

homeworking. Our employee commuting will

increase in line with our workforce. We ask our

colleagues to complete the Travel West survey,

a survey that runs across the West of England,

to assist our local community in planning more

sustainable travel to work. We continue to

support our colleagues through the cycle to

work scheme whilst we explore different ways

to capture this data more effectively, engaging

with colleagues throughout the year.

Efficiency metrics – We have chosen to report

our operational Scope 1 and 2 emissions

per FTE as our Scope 1 and 2 emissions are

driven by our employees working in our office

locations. We are also reporting our usage per

FTE to reflect our reduction efforts.

Looking forward – In FY25, we aim to report

our full emissions profile to conclude our Scope

3 reporting including our purchased goods and

services and capital goods emissions. We are

also considering ways to further support our

employees by further encouraging sustainable

commuting and working practices through our

colleague-led Sustainability Network.

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

Our investment emissions

The emissions associated with our investments comes from the management of HL’s Funds.

Tonnes CO

Product Description FY24 FY23

Baseline

2019

HL Funds Total carbon emissions 560,893 436,543 –

Tonnes CO

e/$m invested

HL Funds Carbon footprint 43.24 39.69 –

Tonnes CO

e/$m revenue

HL Funds Weighted average carbon intensity 96.31 106.41 135.84

% reported

HL Funds 88.96 88.95

Methodology and boundary – We calculated our financed emissions in line with TCFD guidance using PCAF principals and EVIC. Our operational boundary for our Financed emissions cover our HL managed

funds and our managed portfolios. As our managed portfolios are largely made up of HL funds we are not reporting these separately to avoid double counting. The scope of financed emissions is continually

evolving and we will review our approach annually.

Calculation – In FY23, our calculation focused on equities. In FY24, we are including corporate bonds. As calculations and methodology improves, we will continue to update and improve our approach. Our

calculation covers Scope 1 and 2 emissions. Scope 3 emissions are not included in our calculations as we are not confident in the data coverage. Scope 3 emissions data is improving and we will continue to

review our approach and we will look to include this data in future reporting years.

Total carbon emissions – The absolute greenhouse gas (GHG) emissions associated with the portfolio. Scope 1 and Scope 2 GHG emissions are allocated to investors based on an enterprise value approach.

This is the total emissions associated with the fund. The enterprise value calculation values a company based on both the equity and debt value of a company including any cash.

Total carbon footprint – The total carbon emissions for the portfolio normalised by the market value of the portfolio This is the emissions associated with $1 million of investment.

Weighted average carbon intensity – The portfolio’s exposure to carbon intensive companies, relative to revenue. Scope 1 and Scope 2 GHG emissions are allocated based on portfolio weights (the current value

of the investment relative to the current portfolio value). This is the economic carbon efficiency of the fund.

You can view the full calculation and methodology in our HLFM TCFD report. This report goes into further detail on our financed emissions.

Data – Access to reliable climate-related data covering all holdings is an industry-wide challenge, as such we have stated how much of the data is “reported” by the underlying companies. To calculate our

financed emissions we use Morningstar Sustainalytics as a data provider and we have placed reliance on the accuracy of this data used in our calculations. For our reporting, 83% is based on reported emissions

and 5.87% is based on estimates. Due to data limitations, where we have gaps, we reweight our portfolio to 100%.

CORPORATE RESPONSIBILITY

CLIMATE-RELATED FINANCIAL DISCLOSURES CONTINUED

Overview

Our focus this year has been to increase

transparency of our investment emissions

and set a target for our financed emissions.

Progress – We have made progress by

publishing our TCFD entity-level and product-

level reports alongside our investment

emissions climate transition plan.

The core of the transition plan is our

engagement-led approach, and we’ve joined

collective engagement schemes such as

Climate Action 100.

Our financed emissions are where we see us

being able to reduce our impact the most; as

such, we have set a target for our HL Funds to

reduce our weighted average carbon intensity

(WACI) of our listed equity and corporate

bond investments by 50% by 2030, relative

to a 2019 baseline.

We are pleased to report a reduction in our

WACI of our HL Funds of 10.1 tonnes CO

e/$m

revenue since prior year and a reduction of

39.53 tonnes CO

e/$m revenue against our

baseline year WACI.

Looking forward – We aim to continue to

reduce our WACI whilst improving our data

quality on our investment emissions through

engagement and work with our third-party

data provider. We have included a ‘% reported’

indicator which represents data that is either

reported by the underlying company or where

Sustainalytics has estimated data.

We continue to review our approach towards our

investment emissions to ensure the boundary

set for these emissions is appropriate.

View our HLFM TCFD report here

www.hl.co.uk/investorrelations/esg

View our investment emissions

transition plan here

www.hl.co.uk/investorrelations/esg

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

Targets

We review our targets annually to check that

they align with our strategy and continue to

be clear and relevant.

Our targets focus on continued reduction

and efficiency improvements, making us

resilient towards our climate-related risks

and opportunities.

This year we have highlighted that our

offsetting target will be reviewed in FY25 as

part of our transition planning and wider ESG

strategy. This target is being reviewed to see

whether the use of carbon offsets will form

part of our wider transition plan.

Our commitment to ESG extends to how

we incentivise our leadership. A portion of

Executive Directors’ Performance Share Plan

awards are tied to achieving our climate-

related targets.

Target What this means to us FY24 progress against targets

Investment emissions

Reduce the carbon intensity

of our investments by 50%

by 2030 in our HL Funds.

Measure: WACI

As a financial services company we see our investment

emissions as the area where we hold the largest impact.

Our transition plan is engagement led and our current

interim target covers our listed equity and corporate

bond investments, approximately 90% of our total AUM.

We are targeting a reduction in the weighted average

carbon intensity of our investments relative to a 2019

baseline. We aspire to expand this coverage as data

quality and industry standards improve.

բ Reported a 39.53 tonnes CO

e/$m revenue (29%)

reduction against our baseline figure.

բ Published our TCFD entity and product level reports.

բ Published our Climate Transition plan for our

investment emissions.

բ Published our Stewardship and Engagement Report

which details progress on our climate-related

engagement efforts.

Operational emissions

Net Zero in Scope 1 and 2 in

our core offices by 2030.

Measure: Usage per FTE,

Intensity per FTE (Scope 1

and 2).

As a starting point we aim to increase our core office

locations’ efficiency, reducing our demand on the grid.

This target is an interim target for our commitment to

be Net Zero by 2050.

We have started to review our approach and hope to

finalise a full review accompanied by a transition plan to

support this. As part of this review, and as highlighted

below, we will assess whether the use of carbon

offsetting will form part of our transition plan.

բ Reduced our usage per FTE by 977 kWh (36%)

which can be attributed to energy saving methods

such as switching off older IT infrastructure,

reducing our energy demand.

բ The increase of 20% in our intensity per FTE

(1 and 2) is due to a one-off gas leak to one of our

air conditioning systems. The systems are regularly

maintained and other options are not feasible for

the size of our office location. We will continue

to monitor this.

բ Reviewed our technology infrastructure and

started to switch off older technology to reduce

our energy demand.

բ Increased internal reporting to track the benefits

of energy saving activities.

Operational emissions

Identify and report all scope 3

emissions by FY25.

Measure: Reporting all

relevant Scope 3 categories.

Report our full emissions profile of our operational

impact (including our purchased goods and services

and capital goods emissions) and our investment

impact (financed emissions).

բ Reported our investment emissions from

FY24 onwards.

բ Started an initial review of data providers to support

calculations for other Scope 3 categories.

Target under review:

Carbon offset more than we

emit in Scope 1, market-based

Scope 2 in our core offices

and Scope 3 business travel

and employee commuting

by 2025.

Whilst aiming to become more energy efficient we

understand the impact happening today because of

CO2 being released into the atmosphere. This target

shows our commitment to invest in carbon offsets

to carbon capture more than we release through our

operational activities while educating our colleagues on

sustainable travel.

բ Reviewed our approach to data and calculations,

improving on our data quality.

բ Continued investment in renewable energy including

biogas for our core office’s gas.

1 Core office spaces are the office spaces where we hold the ability to select the energy provider and make changes to the building. For HL plc this includes two of our office spaces in Bristol.

CORPORATE RESPONSIBILITY

CLIMATE-RELATED FINANCIAL DISCLOSURES CONTINUED

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

CORPORATE RESPONSIBILITY

NON-FINANCIAL & SUSTAINABILITY INFORMATION STATEMENT

CORPORATE RESPONSIBILITY

The information presented here, including the sections referred to, represents our non-financial and sustainability information statement as required

by sections 414CA and 414CB of the Companies Act 2006.

Reporting requirement Our approach Where you can find out more

Climate and environment

As a platform offering our clients investment solutions we understand that

our largest impact comes from assets under management that we have

stewardship over. In FY24 we have published our entity and product level

TCFD reports, alongside our investment emissions transition plan.

To deliver our climate targets we focus on engagement and

decarbonisation of both our operational and investment emissions.

Our Climate-related Financial

Disclosures align with the four TCFD

pillars covering our governance,

strategy, risk and opportunities

and metrics and targets.

Read more in our Responsible

Business section on page 36.

Human rights

We are committed to supporting the rights of individuals and our

people policies promote and support the protection of the rights

of our colleagues.

We have a zero-tolerance approach to slavery and human trafficking

of any kind within our business operations and supply chain.

Anti-corruption and

anti-bribery

We have policies and procedures in place to guard against financial crime,

including bribery and corruption, money laundering and terrorist financing,

market abuse and fraud.

You can read more about our approach and the policies in place to support

it in the Responsible Business section of this report.

We have an important responsibility to

contribute to the communities around us and

the wider economy.

We focus on driving high levels of Corporate

Responsibility and look to engage with a

wide range of stakeholders to help create

a better future.

The Strategic Report was approved by the

Board of Directors and signed on its behalf by:

Dan Olley

Chief Executive Officer

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

RISK MANAGEMENT AND PRINCIPAL RISKS AND UNCERTAINTIES

EVALUATING AND

MANAGING RISKS

1. Risk management

Effective risk management is essential for

our ongoing success. It enables us to identify

and assess potential threats, allowing us to

mitigate or manage their impact.

All colleagues at HL have responsibility for risk

management in their day-to-day work. This

approach ensures that risks are identified and

managed at all levels of the organisation.

The Board has ultimate accountability

for ensuring HL effectively identifies and

manages risk across the organisation. It

reviews and approves the firm’s risk appetite,

regularly monitoring ongoing risk performance

against this.

To assist the Board in discharging its

responsibilities, we have implemented an

Enterprise Risk Management Framework

(ERMF), which sets out the way HL identifies,

assesses, manages and monitors risk

exposures. The framework (see figure 1) is

aligned to industry standards and has been in

place on the date of this Report’s approval and

throughout the reporting period. It applies to

both the HL Group and its subsidiaries.

We regularly review the ERMF and other risk

management tools to ensure they remain

effective. Key enhancements made during

the period include ongoing embedding of the

Group’s Risk Appetite framework and further

development of the centralised Governance,

Risk & Compliance recording & reporting system.

It is important that we continually improve

our risk management practices to keep

pace with emerging threats, the evolving

regulatory landscape and a competitive

market. This helps to protect client assets,

maintain operational resilience and regulatory

compliance as well as mitigate potential losses.

To support this, we have further embedded our

Risk Maturity Model across the organisation

this year, which provides us with a framework

to assess our risk approach and prioritise any

areas for improvement.

Risk Culture

Risk management is a core responsibility

of all colleagues at HL, with ownership

allocated across business areas in line with

the three lines of defence model. This fosters

a strong risk culture, with colleagues who

fully understand their risk management

responsibilities and are accountable for their

actions. This supports more informed decision

making, reducing the likelihood of taking

excessive or poorly understood risks.

Tools and Governance

HL has embedded a number of frameworks

and tools that support the management and

control of risk.

Three Lines of Defence Model

The first line of defence (1LoD) is accountable

for identifying the relevant risks in their area of

responsibility, assessing the exposure to these

risks and ensuring appropriate risk mitigation

strategies are in place. 1LoD recognises when

something has gone wrong or is going wrong,

evaluates the possible impact and manages

this through the Risk Event Process. 1LoD

comprises the operational functions and

business units that own and manage risks; this

includes everyone in the organisation except

for those in the second or third lines.

Figure 1: Enterprise Risk Management Framework model

There are a number of specialist dedicated

first line control functions, including teams

responsible for product governance; CASS

oversight; client outcomes; conduct risk;

Risk Culture

Tools and Governance

Strategy

Risk

Appetite

Information &

Reporting

Risk

Management

Risk

Documentation

Making it easy

for people to save

and invest for a

better future

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

RISK MANAGEMENT AND PRINCIPAL RISKS AND UNCERTAINTIES

EVALUATING AND MANAGING RISKS CONTINUED

financial control; IT security; data management;

and people, ethics & governance, as well as

specialist control teams in the Chief Digital &

Information Office, Client & Commercial Office

and Chief Operating Office.

The second line of defence (2LoD) is the Risk

and Compliance function. As well as setting

Company policy on Risk and Compliance

matters, 2LoD provides oversight and

challenge to 1LoD.

The third line of defence (3LoD) comprises our

internal auditors, who are employed by HL but

report directly to the Board, allowing them to

provide independent and objective assurance

on HL’s risk framework and its application.

Risk Taxonomy

Risks to which the Group is exposed are set

out in our Risk taxonomy. These are organised

across four categories; Strategic, Financial,

Operational and Investment risks. This

approach ensures that there is consistency and

completeness in the capture and management

of risks, and facilitates effective aggregation

of risk across the Group. The taxonomy is

reviewed at least annually so that it remains

relevant and reflective of our risk exposure,

with the last update taking place in June 2024.

Internal Capital Adequacy and Risk

Assessment (ICARA)

The ICARA is a firm-wide risk management

tool that HL uses to assess the risks faced

by the firm. It provides a clear, accurate and

transparent link between the risk profile of the

business and the capital and liquidity held by

the firm to support our Own Funds Threshold

requirement. It incorporates the results of

Board approved stress tests, which consider

our expected performance under alternative

conditions and the impact this has on our

financial resources.

The HL plc Board and Board Risk Committee

provided approval of the annual ICARA in

November 2023.

Risk Management Tools

Risk and Control Self-Assessments (RCSAs)

are crucial in ensuring that risk exposures

are understood and effectively managed.

This includes an assessment of our control

framework, ensuring risks are aggregated

across all levels and are appropriately reviewed

and prioritised by management.

This process supports our aim to maintain

the confidence of our clients and other

stakeholders, and aligns with our aim to ensure

that our clients’ savings and investments are

managed with diligence and prudence, thereby

advancing our mission of helping people

secure better futures.

Together, the RCSA, Regulatory Horizon

Scanning and Emerging Risk processes allow

the Group to maintain a comprehensive

and forward-looking view of the overall risk

profile of the business. All functions are

responsible for ensuring that risks within their

area have been identified, assessed and are

appropriately managed.

Our Governance, Risk & Compliance recording

and reporting system ensures timely,

accurate and complete capture of the risks

and associated control environment across

the organisation. The aggregated risk profile

by business area and taxonomy enables us

to make more informed decisions, allocate

resources effectively, and enhance the overall

stability and sustainability of our services.

Risk Event management is a key part of the

ERMF. It facilitates issue resolution when

things go wrong and helps HL learn lessons

from errors to support reduction of future

reoccurrence. The information captured

relating to Risk Events helps inform the

assessments of other core risk framework

components including RCSAs, control design

and effectiveness, and operational risk

scenario analysis which are important inputs

into supporting risk-based decisions and

determining the capital HL holds as part of the

ICARA process.

Governance

Governance committees play a central role in

maintaining and overseeing the firm’s approach

to risk. They ensure HL’s risk framework

is appropriate and proportionate to the

complexity of the firm, ensuring that suitable

measures are in place to manage strategic,

operational, financial and investment risks.

The HL plc Board is responsible for overseeing

the management and control of risk across

the Group. It is supported by the Board Risk

Committee and Boards for each of HL plc’s

four principal operating legal entities.

Figure 2: Level 1 risks in the HL risk taxonomy

Level 1 Strategic Financial Operational Investment

Level 2 • Business

environment

• Stakeholder value

• Strategic

execution

• Capital adequacy

• Corporate liquidity

• Administration

• Change delivery

• Conduct

• Data management

• Employee relations

• Environmental,

Social &

Governance (ESG)

• Facilities

management

• Financial crime

• Information security

• Legal

• Model and End

User Developed

Application (EUDA)

management

• Operational

resilience

• Procurement,

supplier & third

party management

• Product &

proposition

• Regulatory

compliance

• Technology

• Fund investment

risk & performance

• Fund oversight risk

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

RISK MANAGEMENT AND PRINCIPAL RISKS AND UNCERTAINTIES

EVALUATING AND MANAGING RISKS CONTINUED

Established under the authority of the

Chief Executive Officer, the Executive Risk

Committee is responsible for ensuring

appropriate systems of internal control

and risk management are in place, operating

within risk appetite and supporting good client

outcomes. The Executive Risk Committee

and Executive Committee are supported by

the Operating Committee, Product & Client

Outcomes Committee, Group Treasury

Committee, Operational Risk Committee,

Model Governance Committee, CASS

Committee and the Stress Testing Forum.

The Group CRO has unfettered access to the

Board Risk Committee and Chair of the Board.

Internal Audit report directly to the Board,

allowing them to be independent.

More details on the Group’s governance

arrangements can be found on pages 70 to 71.

Risk Strategy

Risk is an integral part of the planning

processes used to set the Group’s strategy

and business plans. A balanced approach is

used to determine where to seek risk, so that

we can deliver good outcomes for our clients,

shareholders and colleagues.

Our business strategy was most recently

reviewed and approved by the Board in June

2024, following independent assessment from

the Risk & Compliance teams.

Risk Appetite

Our risk appetite is an articulation of the nature

and level of risk the Group is willing to accept

to achieve its business objectives.

Risk appetite is expressed as qualitative

statements and quantitative metrics that

measure operational, strategic financial and

investment risk performance against agreed

limits. It is reviewed and approved by the

Board on at least an annual basis.

Risk Documentation

The ERMF operates in conjunction with HL’s

values to ensure that the processes to identify,

assess, manage, monitor, and report risk are

embedded in day-to-day business operations

and activities. This provides a consistent and

repeatable approach to managing risk.

This is achieved through a series of documents

supporting the ERMF:

բ Frameworks: four Level 1 risk frameworks

describing the approach for Strategic,

Financial, Operational and Investment risks.

The Operational Risk Framework is further

supported by sub-frameworks for some of

the more complex Level 2 risks that require

specific processes and tools to manage.

բ Policies: our policies detail the

expectations for managing material risks

within agreed risk appetite. The policies are

approved by the appropriate governance

committees and undergo an annual review

cycle to ensure they remain relevant

and appropriate for our business and

in line with relevant regulations.

բ Standards: standards supporting individual

ERMF components provide the mandatory

rules and actions for the business areas

to follow to ensure compliance with the

overarching principles contained within

our policies.

բ Procedures: our policies and frameworks

are supported by a comprehensive suite of

procedures and guides to ensure consistency

of understanding and application of these

policies and frameworks.

Figure 3: Risk appetite approach

Level 1

Risk

Appetite

Statements

Covering 4 Level 1 risks:

բ Strategic

բ Operational

բ Financial

բ Investment

24 Level 2 risks covering

all activity at HL

Risk metrics

Level 2

Risk Appetite Statements,

Metrics & Limits

Key Risk Indicators (KRIs)

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

RISK MANAGEMENT AND PRINCIPAL RISKS AND UNCERTAINTIES

EVALUATING AND MANAGING RISKS CONTINUED

Figure 4: Three lines of defence model

Risk Management

The ERMF sets out the key principles

underpinning effective risk management at

HL, describing the following stages of the

risk lifecycle:

բ Identification: recognising and documenting

potential risks that could impact HL and

give rise to harm to our clients, the firm

or the market.

բ Assessment: the evaluation of risks to

understand their potential impact and

likelihood against Board-approved risk

appetite. HL use tools to assess a variety of

impacts on a consistent, quantitative basis.

բ Management: the deployment of strategies

to mitigate, transfer, avoid or accept risks.

բ Monitoring: tracking identified risks against

agreed tolerances to potentially refine risk

management strategies.

The principles support a consistent,

structured and repeatable approach to risk

management, allowing emerging risks to be

identified by all areas of the business and

appropriately managed.

Information and Reporting

Management provides risk and control

reporting to plc committees, Legal Entity

Boards and Executive committees, that

covers trends, risk profile, performance

against risk appetite levels, material risk

events and emerging risks.

HL plc Board

HL plc Board Risk Committee HL plc Board Audit Committee

Executive Committee

Supporting committees, including

Operating Committee, Product & Client

Outcomes Committee and Group

Treasury Committee

Business Units

Responsible for day-to-day

management of risks

1st Line

of Defence

2nd Line

of Defence

3rd Line

of Defence

Risk & Compliance

Independent oversight

and challenge

Internal Audit

Independent assurance

Supporting risk committees, including

Operational Risk Committee, Model

Governance Committee, CASS

Committee and Stress Testing Forum

Executive Risk Committee

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

RISK MANAGEMENT AND PRINCIPAL RISKS AND UNCERTAINTIES

EVALUATING AND MANAGING RISKS CONTINUED

Viability statement

The Board has considered the principal

risks, in arriving at the viability statement.

The principal risks and uncertainties faced

by the Group are detailed on pages 56 to

58. The principal risks are those that could

result in events or circumstances that might

threaten the Company’s business model, future

performance, solvency, liquidity or reputation.

Management and the Board regularly discuss

emerging risks – unrealised threats that could

have a material impact on our business or

operating model should they materialise.

Topics discussed during the period included

evolution of AI as a threat, geopolitical tensions

and conflicts, cybercrime, and the impacts of

a prolonged economic downturn.

Assessment process for the

viability statement

In accordance with provision 31 of the UK

Corporate Governance Code, the Directors

are required to assess the viability of the Group

and in doing so make a statement confirming

the results of the assessment. In addition the

Directors’ are required to draw attention to

any qualifications or modifications to the audit

report. Please refer to the change of control

statement on this page.

The Directors’ assessment has been made

with reference to the Group’s current position

and strategy, the Board’s risk appetite, the

Group’s financial forecasts and the Group’s

principal risks and uncertainties. In making their

assessment the Directors have considered

the appropriate timeframe over which the

assessment should be made.

The Directors confirm that they have assessed

the viability of the Group over a three year

time period to June 2027 and based on the

results of this analysis and the assumptions

used in the Group’s planning process, they

have a reasonable expectation that the Group

will continue to operate and meet its liabilities

over this time and up to this date. Three

years has been chosen as it is in line with the

medium term strategic planning of the Group

and is the basis for developing forecasts

regarding profitability, cash flows, dividend

policy, regulatory capital requirements and

the relevant capital resources. The Board

approves the strategic forecast annually

and it is reviewed and updated regularly as

is appropriate. Three years is additionally

considered an adequate timeframe over

which to consider the regulatory and market

environment and is the same period over which

its ICARA assessment is completed.

In assessing viability the Directors have

considered the principal risks impacting the

Group as outlined below as well as many

macroeconomic factors, including Government

policy change, that are considered relevant

to the viability of the Group. This assessment

is made after consideration of the ongoing

impact of the Russian invasion of Ukraine,

economic uncertainty created by interest rate

and inflationary pressures, and the impact of

these factors on the UK and global economy.

The table below shows how various types of

business impacts have been included in the

ICARA stress tests.

Stress testing and scenario modelling assess

the impact of adverse events to determine the

robustness of the Group and in all scenarios,

including the most extreme, the Directors’

expectation, based on the assumptions used in

the Group’s planning process, is that the Group

remains viable for the next three years.

The most severe stress test was a cyber

attack during an economic collapse. The

stress was a severe, remote but plausible

macroeconomic shock that reduced the Bank

of England base rate down to 0.10% leading

to lower interest rate retained on client cash

margin. This was combined with a market

decline of 30% and client attrition of 30% due

to reputational damage from the cyber attack.

Whilst the results of the stress were severe and

required significant management actions, the

Group maintained a capital surplus above the

capital requirement and risk appetite. In the

normal course of business the Board also has

the ability to react to emerging and present risks

by making adjustments to its plan as needed.

Viability Statement – change of control

The independent Board has engaged with a

Consortium regarding a possible offer for the

company. As further announced on 9 August

2024, the Consortium has announced its

intention to make a firm offer for the acquisition

of the Group (Firm Offer) subject to shareholder

and other approvals including regulatory

approval. As a result the Directors do not have

certainty on the future plans for the business,

including whether the offer will be approved

by shareholders and gain regulatory approval,

the potential timing for transfer to the potential

new owners or their future plans; including any

financing arrangements.

The Group has a strong cash position, a robust

balance sheet with no debt and is self-sufficient

from a liquidity and capital perspective. The

only financing commitment being a Revolving

Credit Facility agreement with Barclays Bank

to provide access to a further £75 million of

liquidity. This is undrawn and was put in place to

further strengthen the Group’s liquidity position

and increase cash management flexibility. The

facility agreement falls away under a change of

control provision which would be triggered by

any acquisition of the Company.

The conditions described above indicate the

existence of a material uncertainty which

may cast significant doubt on the Group and

Company’s ability to continue as a going

concern. Further information is provided in note

5.1 to the financial statements on page 157.

Notwithstanding this uncertainty, based on the

results of their assessment, the Directors have

a reasonable expectation that the Group and

Company have adequate resources to continue

in operational existence and meet their liabilities

as they fall due over the three year period to

30 June 2027.

ICARA stress tests

Client/asset

growth and

retention

Interest rate

changes

Market

impacts

Prolonged

business

disruption

Increase

in ongoing

costs

Operational

risk events

Partner bank failure

Economic collapse and

cyber attack

Failure to deliver strategy

Significant misconduct

Significant platform failure

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

RISK MANAGEMENT AND PRINCIPAL RISKS AND UNCERTAINTIES

EVALUATING AND MANAGING RISKS CONTINUED

2. Principal risks

and uncertainties

The Board has carried out an assessment of

the principal risks and uncertainties facing the

Group, including those that would threaten its

business model, future performance, solvency,

or liquidity. These have also been considered in

arriving at the viability statement.

This year, we have revised our approach

to reporting principal risks to align with the

relevant, plausible yet severe events to which

the organisation has the largest exposure,

as identified through the ICARA process.

Management and the Board regularly discuss

emerging risks, and the most prominent –

including geopolitical tensions, macroeconomic

deterioration and climate change – have been

included as uncertainties in this report.

This approach has led to 10 principal risks and

uncertainties, covering 15 of the level 2 risks in

our taxonomy (we reported against 12 level 2

risks in 2023).

In assessing all risks, we consider the

potential reputational, client and financial

impacts materialising, as well as the impact

of HL achieving its business and strategic

objectives. To mitigate these risks we ensure

risk exposures and potential impacts are

appropriately and proactively escalated

through key risk governance. Reputational

risk management is further supported by an

internal Public Relations function and Corporate

Affairs Group as well as the use of external

advisers supporting both the Board and the

Executive Leadership Team. The principal

risks and uncertainties faced by the Group

are detailed in this section.

Geopolitical instability

Focus level: increasing

Geopolitical conflicts can threaten the stability

of the world economy and particularly financial

markets. This risk has increased materially over

the past three years, with ongoing conflicts

in Ukraine and the Middle East. In addition,

trade tensions can lead to market volatility

and uncertainty that can affect supply chains,

economic growth and investor confidence.

Geopolitical developments can also have a

material impact on inflationary pressures and

the cyber threat environment.

Key mitigating actions

HL are well positioned to perform detailed

monitoring of global economic conditions and

assess the potential impacts as situations

unfold, allowing us to provide appropriate

market information to our clients.

The diversification of our product set and

revenue streams can help mitigate the impacts

of economic shocks. For example, over FY24

we grew our Active Savings business to £10.6

billion AUA.

In addition, over the past year we have

enhanced our stress testing capabilities, which

improves our understanding of how the HL

balance sheet performs in adverse conditions.

Processes are also in place to identify and

assess potential business vulnerabilities,

including a regular emerging risk exercise that

supports management in identifying future

risks and taking appropriate proactive action.

This risk will continue to be subject to close

monitoring in 2025.

Business risks: Business environment

Macroeconomic deterioration

Focus level: stable

Cost of living pressures and significant

deterioration in the wider economy –

particularly in unemployment, asset prices and

economic growth – pose risks to HL through

reduced inflows and increased withdrawals.

Economic stress can also lead to negative

investor sentiment and asset valuations,

impacting income and profitability.

These risks can also heighten existing

competitive pressures as clients become even

more selective with their investments in the

search for returns in difficult market conditions.

Key mitigating actions

There is overlap with the mitigating actions

under geopolitical instability, including

economic monitoring, stress testing

enhancements, product diversification

and our emerging risk processes.

We also have appropriate levels of capital and

liquidity so that we can withstand significant

macroeconomic shocks.

Our Strategy team regularly analyse industry

trends through peer benchmarking, market

sizing and growth forecasting, and assess

competitor actions to allow us to respond to

market and competitive changes.

We also place continued focus on providing

the highest level of client experience to

differentiate ourselves from our competitors.

This risk will continue to be subject to close

monitoring in 2025.

Business risks: Business environment;

Strategic execution; Capital adequacy

Capital and liquidity strength

Focus level: stable

Capital and liquidity strength is key for

ongoing financial resilience. Capital allows

us to absorb large, unexpected losses, and

liquidity buffers ensure we can meet short

term obligations. Appropriate levels of capital

and liquidity over our regulatory minima are

important for financial stability, regulatory

compliance, market confidence and the

delivery of our strategy.

Key mitigating actions

We hold an appropriate amount of capital

over our regulatory minimum so that we could

absorb extreme levels of unexpected losses,

and we ensure our liquid resources can meet

short term obligations even in a stressed

environment. We confirm these amounts

remain sufficient through our regular ICARA

and emerging risk processes, when we scan

for new threats, and re-assess their likelihood

and possible impact.

We implemented further improvements to our

ICARA and stress testing processes this year,

including modelling enhancements and a new

Stress Testing Forum supporting the Executive

Risk Committee (ERC).

Both capital and liquidity strength are also

a primary focus of our monitoring during

business planning and regular financial

performance reviews.

Given appropriate capital and liquidity buffers,

2025 will continue the existing focus on

enhancing ongoing stress testing capabilities.

Business risks: Capital adequacy; Corporate

liquidity; Regulatory compliance

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

RISK MANAGEMENT AND PRINCIPAL RISKS AND UNCERTAINTIES

EVALUATING AND MANAGING RISKS CONTINUED

Cyber security

Focus level: increasing

The cyber threat landscape is ever-evolving,

with heightened risk of state-backed actions

resulting from geopolitical tensions. Maintaining

robust defences against cyber attack is critical

to not only protect our clients, our colleagues

and their information, but also to protect all

supporting physical, virtual and cloud-based

systems and applications.

Key mitigating actions

Our security response is aligned to the

cyber security framework established by

the National Institute of Standards and

Technology (NIST). We have embarked on a

cloud-first transformation to further enhance

our resilience utilising an industry leading

automated and managed DDOS Protection

and Mitigation service.

Throughout 2025 focus will continue on

building upon our existing cyber security

capabilities, processes and controls. Ongoing

activities include mandatory all-colleague

training, conducting regular security audits and

vulnerability assessments, and security testing

to continually test and validate our resilience

as we scale.

Business risks: Information security;

Technology; Operational resilience; Data

management; Regulatory compliance

Technology failure

Focus level: stable

The availability and resilience of our online

platform is critical to the provision of available

and timely services to our clients. Failure to

deliver a resilient and available service can

result in poor client outcomes.

Key mitigating actions

Despite a reliable and resilient service over

the past year, HL has initiated a strategic

transformation programme to identify and

implement improvements that will support

increased resiliency and ensure that HL’s

objectives meet client experience needs

for the future.

In addition, HL has built out significant

capabilities, processes and controls to

ensure appropriate resilience and performance

capacity is built into ongoing service

developments. This includes ensuring

that effective performance and capacity

monitoring is in place to support proactive

issue identification and resolution, minimising

any potential impacts to clients.

The focus in 2025 will include continued

enhancements in resiliency and client

journey improvements underpinned by the

transformation programme.

Business risk: Information security;

Technology; Operational resilience

Change delivery

Focus level: increasing

HL is working through a period of significant

change to deliver on its strategic objectives.

We recognise the increase in transformation

activity combined with potential changing

market dynamics could increase delivery

risk. The risk of failing to deliver our strategic

commitments or the potential of poorly

executed change could impact clients,

regulators, colleagues and investors.

Key mitigating actions

Our progress towards strategic objectives is

reviewed quarterly by the Executive Leadership

Team, taking into account as necessary

external influences, regulatory commitments

and client needs. Investment and change

resource processes have been enhanced to

facilitate this, including specific investment in

our change model to support delivery of larger

scale and technology-based change.

Strengthening and embedding our change

management controls, delivery assurance

framework and change oversight function are

key elements of this work and will continue to

be a focus in 2025. This will provide us with

the opportunity to respond and flex to internal

and external factors with increased agility,

safeguarding the critical change required to

deliver on our strategic objectives for the

benefit of our clients and investors.

Business risk: Strategic execution;

Change delivery; Regulatory compliance;

Administration; Conduct

Data management

Focus level: stable

In delivering services to our clients, we hold

significant amounts of client, product and

service data. We recognise our responsibility

to protect critical data and ensure its accuracy,

integrity, quality and availability to support

our clients in accessing and managing their

portfolios, as well as protect clients from poor

outcomes such as exposure to fraud.

Key mitigating actions

HL is committed to ensuring that data is

secure, accurate and available, and continues

to invest in significant data management

capabilities, processes and controls that

cover data protection compliance, information

security and operational resilience. We are

committed to the implementation of a robust

data management control environment, and

continue to develop it to ensure it remains

aligned to HL’s operating model and the

changing technological and cyber threat

landscapes that inform the evolving regulatory

environment. The focus for 2025 will include

improving data architecture, resiliency and

monitoring capabilities.

Business risk: Data management; Information

security; Regulatory compliance

Hargreaves Lansdown

Report and Financial Statements 2024

Strategic report

At a Glance 1

Market Opportunity 2

Business Model 4

Strategic Summary 6

Chair’s Introduction 12

CEO Review 14

Strategy & KPIs 18

Stakeholder Engagement 22

Operating and Financial Review 24

Corporate Responsibility Introduction 31

Responsible Platform 33

Responsible Fund Manager 35

Responsible Business 36

Responsible Employer 38

Climate-related Financial Disclosures 43

Non-Financial & Sustainability

Information Statement 50

Risk Management and the Principal

Risks and Uncertainties 51

Governance 59

Financial statements 128

Other information 173

RISK MANAGEMENT AND PRINCIPAL RISKS AND UNCERTAINTIES

EVALUATING AND MANAGING RISKS CONTINUED

Climate change

Focus level: increasing

Climate change is a significant global challenge

and understanding the risks and opportunities

it has on our business is vital for long-term

sustainable growth.

We aim to minimise our exposure to the risks

facing the transition to a low-carbon economy

and the physical risks of climate change.

Key mitigating actions

We utilise scenario analysis, which is a method

of using hypothetical climate scenarios that

allows us to assess the impact on our business

and resilience of our strategy. You can view

our scenario analysis in the climate-related

financial disclosures section of this report

on pages 45 and 46.

We monitor our exposure through climate-

related metrics including our emissions and

energy usage, and have decarbonisation

targets for these metrics.

We embed climate-change into our

governance structure through our designated

ESG Taskforce. We engage with clients through

our stewardship and engagement report to

ensure our approach is consistent with their

needs whilst utilising ESG data tools in our

investment processes.

Our focus for 2025 will centre on building our

climate reporting to cover our full emissions

profile. This will allow us to shape our transition

plan as we move to further decarbonise our

operational emissions.

Business risks: Environmental, Social and

Governance (ESG)

Administration processes

Focus level: stable

The risk posed by weak administration

processes, including dependencies on people

and third parties, can lead to operational

inefficiencies, service delivery errors,

inconsistent quality standards and ultimately

poor client outcomes. This can result in

client dissatisfaction, financial losses and

regulatory scrutiny.

Key mitigating actions

Over the year HL has invested further in

service enhancements including process

improvements, staff training and investment

in technology solutions to both automate

and improve process monitoring. This has

increased our efficiency and accuracy and we

have seen client NPS also increase over the

period as a result.

Our operations teams perform demand

analysis and capacity planning to balance

client need with operational efficiency. Our

2025 enhancement plans will include focus

on further automation and tools to improve

client journeys.

Regular assessments and audits review

control effectiveness and ensure issues are

promptly addressed.

Partnerships with third party providers are

regularly re-evaluated to ensure alignment with

the Company’s quality standards, and training

programmes have been intensified to equip

staff with the necessary skills to manage these

processes effectively.

Business risk: Administration; Outsourcing,

procurement & supplier management;

Employee relations

Regulatory and political uncertainty

Focus level: stable

There has been a significant amount of

regulatory change over the past few years

including Brexit and Consumer Duty, and this

trend is expected to continue. Following the

change of Government in July further changes

can be expected. The risk to HL and its clients

is considered stable but is being closely

monitored by management.

The risk of failing to comply with regulatory

expectations and/or future requirements

could result in poor client outcomes,

regulatory scrutiny, reputational damage

and financial loss.

Key mitigating actions

Through a clearly defined three lines of

defence model, HL has systems, processes

and controls in place to manage and

oversee current and future regulatory

change impacting our business and ensure

it is adequately planned for. HL has robust

product and proposition design and oversight

processes and in 2024 HL implemented

enhanced Executive oversight to support

good client outcomes.

HL has taken and will continue to take a

proactive stance with the Government and

regulatory bodies on matters that impact our

clients. A current focus includes input on the

review of the advice/guidance boundary as

HL believes it is critical to further improve

information available to clients to support them

make the right financial decisions for them.

Business risks: Regulatory compliance

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

GOVERNANCE

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

CHAIR’S INTRODUCTION TO CORPORATE GOVERNANCE

providing a high level of

service and value to our clients

and shareholders

Alison Platt

Chair

GOOD GOVERNANCE

ENABLINGGROWTH

On behalf of the Board, I am pleased to introduce our Corporate

Governance Report for the year ended 30 June 2024. This is

my first report since joining the Group in February 2024. This

sets out how the Group’s governance framework supports and

promotes its long-term success, and also provides an overview

of the activities of the Board and its Committees.

Since joining HL my focus has been understanding the needs

and viewpoints of its: clients; colleagues; shareholders; and

wider stakeholders. I have very much valued my time in

Bristol getting to know the business through call listening with

colleagues, induction meetings with management and their

teams and learning from my fellow Board members – all of whom

demonstrate passion for HL’s clients and its business.

Regulation and Board changes

The trust of our clients, colleagues and stakeholders is key

to HL and during the year the Board and its Committees

have worked hard with the Group to deliver against the FCA’s

Consumer Duty requirements. The Board’s continued focus

was led through Penny James, our SID, who additionally is our

Consumer Duty Board champion. Building on the work to ensure

we have the right skills and experience in place to support HL,

its operations and its growth agenda is vital and so we were

delighted that during the reporting year the Board welcomed

Michael Morley. Michael joined as an independent Non-

Executive Director with effect from 1 August 2023. In addition,

during the year and following on from Chris Hill’s decision to

retire as CEO, the Company was pleased to announce the

appointment of existing Non-Executive Director Dan Olley to

the role of CEO. Chris stepped down as CEO on 7 August 2023

with Dan transitioning to the role that same day. Dan has a clear

focus on executing the strategy and blending the best of human

and digital elements to provide the level of service clients

rightly expect from HL. These appointments were made by the

Board, supported by the Nomination & Governance Committee.

Detail was provided about their respective appointments in last

year’s report but you can find information about the skills and

experience these individuals, and other Board members, bring

to HL in the biographies of our Directors on page 62.

During the year, in addition to Chris stepping down as CEO

Roger Perkin and Deanna Oppenheimer both stepped down at

the 2023 AGM. I would like to take this opportunity to thank all

three individuals for their dedication and focus on putting the

client first and growing HL during their tenure.

We have paused the external board effectiveness review

(last undertaken in 2021 and reported in 2022). Our aim is

to complete the work within the calendar year. However, as

the incoming Chair, I have taken the opportunity to informally

seek views on the Board’s effectiveness from my fellow Board

members and to take views from shareholders, and as a result,

we are seeking to further align the Board’s responsibilities with

its knowledge of the business, the sector and to spend time

with our colleagues.

Purpose, culture and diversity

Our purpose is clearly defined and is underpinned by our

culture, including in our approach to governance and risk

management. The Board promotes a culture that encourages

good governance, effective decision making, appropriate risk

management, accountability and clarity on responsibilities. This

ensures we can focus on making the right decisions, at the right

level, with the right information. Ultimately this supports the

successful delivery our strategy whilst providing a high level of

service and value to our clients and shareholders.

We recognise that greater diversity within a business drives

better decision-making and we strongly believe that building

a diverse and inclusive workforce will lead to better outcomes

for clients, colleagues and our business. You can find out more

information about our purpose, culture and diversity in the

Strategic Report. As at 30 June 2024 (and at the date of this

report), 50% of our Board is made up of women; three of our

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

CHAIR’S INTRODUCTION TO CORPORATE GOVERNANCE

CONTINUED

four senior Board positions are held by women and we have at

least one Director from an ethnic minority background. We know

that representation matters.

Relationships with shareholders and stakeholders

A key focus in my first months has been to spend time meeting

with HL’s shareholders. This has been vital in terms of better

understanding the interests and needs of our shareholders and

how we, as a Board, can deliver value for them. I have also been

keen to follow up on the votes against a number of resolutions

recorded at last year’s AGM and since joining the Company in

February I have met with over 62% of the shareholder base. The

outcome of this is due to be reported via HL’s website in August

2024. In reporting back on this work I appreciate we were not

within the indicative time limit set out in Provision 4 of the UK

Corporate Governance Code. However, given the importance

of this exercise and my own arrival in February of this year

I was keen to give it the attention it deserved and not rush

the process.

You can read more about how the Directors have had regard

to the interests of our key stakeholders within the context of

promoting the success of the Company in our Section 172

Statement on pages 124 to 126.

Compliance with the UK Corporate Governance Code

We apply and report under the 2018 UK Corporate Governance

Code (the Code). Our Compliance Statement confirms our

compliance with the Code during the period under review.

You can read more about how we have applied its principles

throughout our Corporate Governance Report. Key disclosures

are signposted opposite.

Should you have any questions in relation to this report, please

feel free to contact myself or the Company Secretary.

Alison Platt

Chair

14 August 2024

Governance at HL – Compliance Statement

HL is committed to the highest standards of corporate governance as set out in the UK Corporate Governance Code (the Code).

The Code sets out the standards of good practice in relation to how the Company should be governed and can be found on the

FRC’s website at www.frc.org.uk. This has been applied by the Company during the period under review. The Board is satisfied

that the Company has complied with the provisions of the Code throughout the period under review with only two minor instances

to the contrary – both of which are referenced in the Chair’s opening statement and more fully in the Nomination & Governance

Committee Report at page 112. You can read more about HL’s compliance with the Code as set out below:

Section Code Principles Where to read about how HL has complied

1. Board leadership and

company purpose

A. An effective board promoting long term success

for the company and contributing to society

more widely

Pages 1 to 58, 60 and 69

B. Purpose, values, strategy and culture Pages 1 to 58, 60 and 69

C. Performance measures, risk and controls framework Pages 18 to 21, 51 to 58 and 117 to 119

D. Stakeholder engagement Pages 22 to 23, 69 to 70 and 124 to 126

E. Wider workforce Pages 38 to 42 and 70

2. Division of

responsibilities

F. Leadership of the board Pages 60 and 69 to 72

G. Board composition, roles and effectiveness Pages 65 to 69 and 112 to 116

H. Directors’ responsibilities and time commitment Pages 66 to 69

I. Support information and advice available to

the Board

Pages 67 and 68 to 69

3. Composition,

succession and

evaluation

J. Board appointments, succession planning and

diversity consideration including senior management

Pages 68 and 112 to 116

K. Board skills, knowledge and experience Pages 62 to 64 and 112 to 116

L. Board effectiveness review (annual) Pages 115

4. Audit, risk and

internal control

M. Independence and effectiveness of Internal and

External Audit functions

Pages 72 to 80

N. Fair, balanced and understandable assessment of

company’s position and prospects

Pages 72, 76 and 78

O. Risk Management and Internal Control Framework Pages 51 to 58, 72 to 80 and 117 to 119

5. Remuneration

P. Remuneration alignment to strategy, company

purpose and values

Pages 81 to 111

Q. Executive and senior management remuneration Pages 81 to 111

R. Authorisation of remuneration outcomes Pages 81 to 111

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

BOARD OF DIRECTORS

Alison Platt

Chair and Independent

Non-Executive Director

Dan Olley

Chief Executive Officer

Amy Stirling

Chief Financial Officer

Chair Executive Directors

Appointed to the Board:

February 2024

Skills, competence and experience:

Alison has extensive leadership experience

across both private and listed companies in

the healthcare, financial services, retail and

property, and regulated sectors. Alison was

CEO of Countrywide from 2014–2018 and

prior to that she held several senior roles at

Bupa, including as Managing Director of its

International Development Markets business.

She was previously a Non-Executive Director

of the Foreign and Commonwealth Office,

Chair of Dechra Pharmaceuticals plc, a member

of Hampton-Alexander review steering group

advising on diversity and inclusion and Chair

of Opportunity Now.

Committee membership:

Nomination & Governance Committee (Chair)

Other current appointments:

Non-Executive Director and Chair of

Remuneration Committee at Tesco plc

Non-Executive Director of Inchcape plc

Non-Executive Director of Spectrum Wellness

Holdings Limited

Chair of Ageas (UK) Ltd

Appointed to the Board:

June 2019

Chief Executive Officer since August 2023

(Independent Non-Executive Director June

2019 – August 2023)

Skills, competence and experience:

Prior to his appointment as Chief Executive

Officer, Dan was CEO of dunnhumby Ltd from

January 2022. Dan joined HL as a seasoned

and experienced senior technology leader

and has a track record of driving digital

transformations in established businesses,

including financial services, insurance, business

information solutions, research, and healthcare.

Dan brings a problem solving and analytical

skill set, along with experience of successfully

implementing advanced technologies to drive

both revenue growth and operational process

efficiency and optimisation. During his tenure

as an Independent Non-Executive Director

of HL, Dan was a member of the Risk and

Remuneration Committees.

Committee membership

None

Other current appointments

None

Appointed to the Board:

February 2022

Skills, competence and experience:

Amy has significant financial and strategic

leadership experience in client facing

businesses across the telecommunications

and financial services sectors. She has

considerable transformation and M&A

experience at both executive and non-

executive level and is a qualified chartered

accountant. Amy was previously Chief Financial

Officer of the Virgin Group and other previous

appointments include Non-Executive Director

and Chair of the Audit Committee at RIT Capital

Partners plc, Non-Executive Director at Virgin

Money UK plc, Chief Financial Officer of The

Prince’s Trust and Chief Financial Officer at

TalkTalk Telecom Group Plc.

Committee membership:

None

Other current appointments:

Trustee of HL Foundation

Non-Executive Director of Next plc

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

BOARD OF DIRECTORS

CONTINUED

Non-Executive Directors

Andrea Blance

Independent Non-Executive Director

Moni Mannings OBE

Independent Non-Executive Director

Adrian Collins

Non-Independent Non-Executive Director

Appointed to the Board:

September 2020

Skills, competence and experience:

Andrea is a qualified accountant and brings

extensive Board and financial services

experience having spent her executive career

at Legal & General Group plc where she was

a member of the Group Executive Committee

and held a diverse range of senior leadership

roles including finance, risk and regulation,

marketing and strategy. Andrea’s past non-

executive roles include Senior Independent

Director and Remuneration Committee Chair

at Vanquis Banking Group plc, Risk Committee

Chair at Scottish Widows plc and Lloyds

Banking Group Insurance Division, Senior

Independent Director and Audit Committee

Chair at ReAssure Group plc, and a member of

William & Glyn’s pre-IPO board.

Committee membership:

Risk Committee (Chair)

Audit Committee

Nomination & Governance Committee

Other current appointments:

Non-Executive Director and Chair of the Board

Risk Committee of Aviva plc

Appointed to the Board:

September 2020

Skills, competence and experience:

Moni is a qualified solicitor with a strong

background in international banking and

finance and was a Senior Partner and Board

member of law firm Olswang LLP. She has held

a number of non-executive positions including

as a Board member of Dairy Crest Group plc,

Polypipe Group plc, the Solicitors Regulation

Authority (chairing its Equality, Diversity, and

Inclusion Committee), Cranfield University,

Deputy Chair of Barnardo’s and Senior

Independent Director of Investec Bank plc.

Moni is also founder of EPOC a not-for-profit

network that seeks to increase the number of

people of colour on boards.

Committee membership:

Remuneration Committee (Chair)

Nomination & Governance Committee

Risk Committee

Other current appointments:

Non-Executive Director of easyJet plc

Senior Independent Director designate of Land

Securities Group plc

Senior Independent Director of Co-operative

Group Limited

Appointed to the Board:

November 2020

Skills, competence and experience:

Adrian has worked in the fund management

business for over 50 years, most recently

at Liontrust Asset Management where he

served as Executive Chairman from 2009 to

2019. During this period, Adrian oversaw a

transformation in the business, broadening its

investment and distribution capabilities and

undertaking numerous acquisitions. Adrian has

extensive experience across fund management

and adjacent sectors having held senior

roles at Gartmore, where he was Managing

Director, Trustnet (which he co-founded),

Jupiter, Bestinvest and Lazard Investors. He

is an experienced Non-Executive Director.

Adrian has been appointed to the Board as a

shareholder representative and as such is not

deemed to be independent.

Committee membership:

None

Other current appointments:

Non-Executive Chairman of Logistics

Development Group plc (formerly Eddie

Stobart Logistics plc)

Non-Executive Chair of LSL Property Services

John Troiano

Independent Non-Executive Director

Appointed to the Board:

January 2020

Skills, competence and experience:

John has significant investment and asset

management experience. John has spent 38

years at Schroders in a wide range of roles

including investment research and analysis,

fund management, and has worked across

both retail and institutional channels. Most

recently, as Head of Distribution, John was

responsible for the design and implementation

of business strategy globally and the oversight

of sales and client service activities.

Committee membership:

Audit Committee

Nomination & Governance Committee

Remuneration Committee

Risk Committee

Other current appointments:

Independent Non-Executive Director of

Hargreaves Lansdown Fund Managers Ltd

Non-Executive Director of British Fencing

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

BOARD OF DIRECTORS

CONTINUED

Non-Executive Directors

continued

Penny James

Independent Non-Executive Director

and Senior Independent Director

Darren Pope

Independent Non-Executive Director

Michael Morley

Independent Non-Executive Director

Claire Chapman

General Counsel, Company Secretary

and Chief People Officer

Appointed to the Board:

September 2021

Skills, competence and experience:

Penny brings extensive financial services

experience with strong leadership skills,

financial and risk expertise, strategic thinking

and cultural alignment. Penny was previously

Chief Financial Officer then Chief Executive

Officer of Direct Line Insurance Group plc. Prior

to this she held a number of roles including

Group Chief Risk Officer and Director of Group

Finance at Prudential plc; Group CFO at Omega

Insurance Holdings Limited; and CFO UK

General Insurance, at Zurich Financial Services.

Penny was previously a Non-Executive Director

of Admiral Group plc from 2015 to 2017.

Committee membership:

Nomination & Governance Committee

Risk Committee

Other current appointments:

Co-Chair of the FTSE Women Leaders Review

Non-Executive Director of QBE Insurance

Group Limited

Non-Executive Director of Mitie Group plc

Non-Executive Director of Vitality Life Ltd

Non-Executive Director of Vitality Health Ltd

Appointed to the Board:

September 2022

Skills, competence and experience:

Darren has considerable and extensive

experience within the retail banking and

financial services sectors where he held senior

and Board level positions. At present, Darren is

Non-Executive Director at Virgin Money plc and

SID and Chair of Audit Committee at Network

International Holdings plc. Previously he has

served as SID and Chair of Audit Committee

with Equiniti plc and the Non-Executive

Chairman of HSBC Innovation Banking.

Throughout his career, Darren held several

executive banking and finance roles at Lloyds

Banking Group and was the CFO of TSB Bank

plc.

Committee membership:

Audit Committee (Chair)

Nomination & Governance Committee

Risk Committee

Other current appointments:

Non-Executive Director of Virgin Money plc

Senior Independent Director and Chair of Audit

Committee of Network International plc

Appointed to the Board:

August 2023

Skills, competence and experience:

Michael has over 30 years of executive and

board experience in international financial

services with in-depth knowledge of private

banking and wealth management markets

around the world. He was previously CEO

of Coutts and of Deutsche Bank’s UK

wealth management arm and Chair of RBS

International.

Committee membership:

Nomination & Governance Committee

Remuneration Committee

Risk Committee

Other current appointments:

Non-Executive Director of Deutsche Bank

SAEU (Spain)

Non-Executive Director of Deutsche Bank SA

(Switzerland)

Senior Independent Director of Personal

Investment Management and Financial Advice

Association (PIMFA)

Deputy Chair of Centre for Mental Health

Appointed:

October 2021

Skills, competence and experience:

Claire heads up the Legal, Company

Secretariat, Corporate Governance and People

functions. Claire has held General Counsel and

also Company Secretary roles at a range of

companies including most recently at Capita

plc and prior to that at Daily Mail & General

Trust plc, Inchcape plc and Thomson Reuters.

She qualified as a lawyer at Freshfields

Bruckhaus Deringer.

Claire has a Masters in International Law and

is a qualified Solicitor, England and Wales and

additionally Attorney, New York.

Committee membership:

None

Other current appointments:

Independent Non-Executive Director on the

Board of LME Clear

General Counsel and

Group Company Secretary

Board independence

Executive Director 2

Non-Executive Chair 1

Independent

Non-Executive Director 7

Tenure of Board members

0–3 years 8

4–6 years 2

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

CORPORATE GOVERNANCE REPORT

The Board is responsible for promoting

the sustainable success of the Group,

generating value for the Company’s

shareholders over the long term, and

contributing to wider society by building

strong and lasting relationships with

its other stakeholders.

FURTHER STRENGTHENING

GOVERNANCE FOR THE FUTURE

Corporate governance headlines at a glance

including Board composition data as at 30 June 2024

3 out of the 4

senior Board positions are held by women

1 director is from an ethnic minority background

Chair Senior

Independent

Director

CEO CFO

Board gender balance

Male Female

50% of Board members are women

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

CORPORATE GOVERNANCE REPORT

FURTHER STRENGTHENING GOVERNANCE FOR THE FUTURE CONTINUED

Division of responsibilities

The Board recognises the importance of a clear division of

responsibilities between Executive and Non-Executive roles,

and in particular a clear delineation of the Chair’s responsibility

to lead the Board and the Chief Executive Officer’s responsibility

for running the Group’s business. The roles of Chair, Chief

Executive Officer and Senior Independent Director are clearly

defined and have been approved by the Board.

Role of the Chair

The Chair, Alison Platt, is responsible for leading the Board and

ensuring that it is effective in discharging its duties. Her key

responsibilities are to:

բ Chair the Board, the Nomination & Governance Committee

and general meetings of the Company;

բ Set the Board agenda and ensure the Board receives

accurate, timely and clear information, and that adequate

time is available for discussion of all agenda items, in

particular strategic issues;

բ Set clear expectations concerning the Company’s culture,

values and behaviours and the style and tone of Board

discussions;

բ Demonstrate ethical leadership and promote the high

standards of integrity, probity and corporate governance

throughout the Company and particularly at Board level, and

generally ensure the effective governance of the Group;

բ Promote a culture of mutual respect, openness and debate

by facilitating the effective contribution of Non-Executive

Directors, develop productive working relationships with

the Chief Executive Officer and Chief Financial Officer, and

ensure there are constructive relations between Executive

and Non-Executive Directors generally;

բ Encourage all Board members to engage in Board and

Committee meetings by drawing on their skills, experience,

knowledge and, where appropriate, independence;

բ Ensure effective communication with the Company’s

shareholders and other stakeholders, and that the Board is

made aware of their views; and

բ Ensure that the performance of the Board, its Committees

and individual Directors is evaluated at least once a year and

that the results of the evaluation are acted upon.

Role of the Chief Executive Officer

The Board delegates responsibility for the executive leadership

of the Group’s business to its Chief Executive Officer (CEO).

During the year ended 30 June 2024 the CEO was Dan Olley

with Chris Hill having stepped down from the role from 7 August

2023. The CEO’s main responsibilities are to:

բ Lead the senior management team in the day to day running

of the Group’s business in accordance with the Board

approved strategic objectives;

բ Chair the Group Executive Committee in its oversight of

the performance of the Group against the Board approved

strategic objectives and communicate any decisions and

recommendations to the Board;

բ Review the operational performance and strategic direction

of the Group’s business;

բ Ensure that appropriate systems of internal control and risk

management are in place and operating in accordance with

the Group’s risk appetite approved by the Board; and

բ Aligned with the Chair, provide a coherent leadership of the

Group and promote adherence to its culture and values.

Penny James provides an overview of her role as Senior Independent Director (SID)

What does the role of the SID encompass?

The main, and most consistent part of my role is to act as a

sounding board to the Chair of HL. This can take a variety of

forms but mainly its discuss and provide insight and guidance

on issues relating to the Group’s governance, the performance

of the Board and individual Directors. But it can be broader

and cover any concerns raised by Directors, the Company’s

shareholders or the Group’s employees. I am also available to

facilitate the resolution of disputes between the Chair and other

members of the Board should they rise.

This year a key focus of my role was in leading the search

process for a new Chair on behalf of the Nomination &

Governance Committee which then made a recommendation to

the Board. The process is detailed in that Committee’s report on

page 113. This process resulted in Alison Platt joining the Board

in February 2024. With Deanna Oppenheimer having stepped

Role of the Senior Independent Director

The Senior Independent Director plays an important role in

supporting the Chair on governance issues, contributing to

the culture of open and honest communication between the

Chair and the other members of the Board, and providing an

additional point of contact for the Company’s shareholders.

down at our AGM in December 2023, I chaired the Board and

Nomination & Governance Committee in the interim with Andrea

Blance taking on the role of the SID.

Each year I also lead the other Non-Executive Directors in

carrying out the Chair’s annual performance review. With Alison

having joined in February this year it was naturally a lighter

touch process to assess how Alison was settling into her role,

her way of working and providing feedback collated from other

Board members to help her be as effective as possible.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

CORPORATE GOVERNANCE REPORT

FURTHER STRENGTHENING GOVERNANCE FOR THE FUTURE CONTINUED

Non-Executive Directors

The role of the Non-Executive Directors is to constructively

challenge and help develop proposals on strategy and play a

leading role in monitoring and scrutinising the performance of

the Group’s Executive Committee in meeting agreed goals and

objectives. The Non-Executive Directors are also responsible for

determining appropriate levels of remuneration for the Executive

Directors, and play a prime role in appointing and, where

necessary, removing Executive management.

The Nominated Director (Adrian Collins) is an appointee of a

shareholder and is not independent under the Code. However,

all the Non-Executive Directors are independent of management

and bring valuable skills, experience and an external perspective

to the business conducted by the Board, as well as offering

specialist advice in their fields of expertise.

The independent Non-Executive Directors also play an

important role as members of the Board’s Committees.

Group Company Secretary

All the Directors have access to the advice and services of the

Group Company Secretary. The Group Company Secretary is

responsible for working with the Chair to develop and maintain

the policies and processes required to enable the Board to

function effectively and efficiently, and for ensuring the Board

has the information, time and resources it needs.

The Group Company Secretary is also responsible for advising

the Board on corporate governance matters and for ensuring

procedures are followed and applicable rules and regulations

complied with.

The appointment and removal of the Group Company

Secretary is a matter reserved for the Board. During the

period under review, Claire Chapman held the role of

Group Company Secretary.

Meeting attendance and information provided to the Board

HL plc Board

9 meetings

Audit

Committee

8 meetings

Nomination &

Governance

Committee

6 meetings

Remuneration

Committee

5 meetings

Risk

Committee

6 meetings

Deanna Oppenheimer

plc Board Chair

4/4

CHAIR

n/a 3/3

CHAIR

3/3 n/a

Alison Platt

plc Board Chair

4/4

CHAIR

n/a 2/2

CHAIR

n/a n/a

Chris Hill

Chief Executive Officer

0/0 n/a n/a n/a n/a

Dan Olley

Chief Executive Officer

(formerly Independent

NED)

9/9 n/a n/a n/a n/a

Amy Stirling

Chief Financial Officer

9/9 n/a n/a n/a n/a

Penny James

Senior Independent

Director

9/9

Interim

CHAIR

n/a 6/6

Interim

CHAIR

n/a 5/5

Andrea Blance

Independent NED &

Risk Committee Chair

9/9 8/8 6/6 n/a 6/6

CHAIR

Adrian Collins

Non-Independent NED

7/7 n/a n/a n/a n/a

Moni Mannings

Independent NED

& Remuneration

Committee Chair

8/9 n/a 6/6 5/5

CHAIR

6/6

Michael Morley

Independent NED

9/9 n/a 1/1 4/4 6/6

Roger Perkin

Independent NED

4/4 4/4 3/3 3/3 3/3

Darren Pope

Independent NED

9/9 8/8

CHAIR

5/5 n/a 6/6

John Troiano

Independent NED

9/9 8/8 1/1 5/5 6/6

1 Deanna Oppenheimer stepped down from the

Board on 8 December 2023.

2 Alison Platt was appointed to the plc Board

on 6 February 2024. She joined the Nomination

& Governance Committee on the same day.

3 Chris Hill stepped down from the Board, and

as Chief Executive Officer, on 7 August 2023.

4 Dan Olley transitioned from the role of NED

to Chief Executive Officer on 7 August 2023.

He stepped down as a member of the Risk

Committee on the same day, having previously

stepped down from the Remuneration

Committee (in year ending 30 June 2023)

and recused himself from any meetings where

his appointment or his role in leading the

management team was discussed.

5 Penny James served as Chair of the plc Board

and the Nomination & Governance Committee

between 8 December 2023 and 6 February

2024. During this period she stepped down

as a member of the Risk Committee.

6 Andrea Blance served as SID between

8 December 2023 and 6 February 2024.

7 Adrian Collins has been recused from all

meetings since 12 April 2024 due to his conflict

as shareholder representative for founder

Peter Hargreaves.

8 Moni Mannings was unable to attend one plc

Board meeting due to its timing needing to

be moved at short notice and unfortunately

her diary was unable to accommodate due to

a prior commitment

9 Michael Morley was appointed to the plc Board,

Remuneration Committee and Risk Committee

on 1 August 2024. He joined the Nomination

& Governance Committee from 26 April.

10 Roger Perkin stepped down from the Board

on 8 December 2023. He remained a member

of the Nomination & Governance Committee

after stepping down as Audit Committee

Chair (15 September 2023) in order to provide

continuity in the ongoing search for a new plc

board Chair.

11 Darren Pope joined the Nomination &

Governance Committee from 15 September

2023, when he became Audit Committee Chair.

12 John Troiano joined the Nomination &

Governance Committee from 26 April 2024.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

CORPORATE GOVERNANCE REPORT

FURTHER STRENGTHENING GOVERNANCE FOR THE FUTURE CONTINUED

Board meeting attendance is shown for all scheduled Board

meetings during the year including an in person Strategy Day

in December 2023 to assess progress against the execution

of the Group strategy. From time to time the Board may meet

outside its scheduled meetings and each NED, in their letter

of engagement confirms that they have the capacity to attend

such ad hoc meetings, as are reasonably requested. During

the year, and as would be anticipated given the new CEO and

new Chair, there have been additional sessions to discuss

particularly strategic matters to continue to ensure Board

alignment. Where necessary, Adrian Collins, as Peter Hargreaves

representative on the Board, has recused himself from any such

ad hoc meetings due to actual or potential conflicts of interest

arising. The Non-Executive Directors also meet periodically

without the Executive Directors present. These sessions have

been held via a mixture of remote, hybrid and face to face

meetings to make best use of time and work efficiently. The

Board also met with members of the Executive Leadership Team

and other senior management.

Supported by the Group Company Secretary and the

Company Secretariat team, the Board is satisfied that it has

the policies, processes, information, time and resources

required in order for it to function effectively and efficiently.

Comprehensive Board packs and agendas are circulated

prior to meetings to ensure Directors have the opportunity

to consider the issues to be discussed so that more time at

meetings can be dedicated to constructive challenge and

strategic discussion. Directors are expected to attend all

meetings. However, when a Director is unavoidably unable

to attend all or part of a meeting, they are able to provide

comments on the papers to the Chair before the meeting.

Board make up and supporting elements

Board composition, balance and diversity

The structure, size and composition of the Board is regularly

reviewed to ensure that the balance between Executive and

Non-Executive Directors allows it to exercise objectivity and

that no individual or small group of individuals dominates

decision making. In addition, the Nomination & Governance

Committee regularly reviews the size, structure and

composition of the Board and its Committees to ensure an

appropriate and diverse mix of skills, experience, knowledge,

backgrounds and personal strengths. The Non-Executive

Directors have strong and relevant experience across all aspects

of financial services and the Board as a whole is considered

to have an appropriate balance of skills and experience for the

requirements of the Group’s business.

Consideration of the length of service of Directors is a key

element of the wider consideration of Board composition and

succession planning, and for Non-Executive Directors it is an

important aspect that is considered in determining continued

independence. The Group maintains clear records of the terms

of service of the Chair and Non-Executive Directors to ensure

continued compliance with the tenure requirements in the Code.

The Chair has held the position since her appointment to the

Board in February 2024 and, as at the date of this report, none

of the Non-Executive Directors has served on the Board for

more than nine years from the date of their first appointment.

Diverse pools of candidates are considered for vacancies and in

succession planning, and any appointments are based on merit

and objective criteria. Further details on the Group’s approach

to diversity and inclusion when considering Board appointments

and succession planning, and how the approach promotes

diversity of gender, social and ethnic backgrounds, cognitive

and personal strengths, can be found in the Nomination &

Governance Committee report on page 112.

As at 30 June 2024 50% of Board members are female with

one Board member being from a minority ethnic background.

Women hold the following three of four senior roles: Chair,

Senior Independent Director and Chief Financial Officer. The

Board also recognises and embraces the clear benefits of

diversity at Board Committee level. As such consideration is

given to the wider Board diversity policy when looking at the

make up of Committees with the aim of driving diversity of

membership and thought. When making appointments to its

Committees (including the Audit, Nomination & Governance,

Remuneration and Risk Committees) the Board has regard

to the skills, experience and diversity of the Committees and

their needs. As a result as at 30 June 2024, Board Committee

gender diversity was as follows: Audit Committee – 33%

female, Nomination & Governance Committee – 57% female,

Remuneration Committee – 33% female and Board Risk

Committee – 50% female.

Board appointment process

The Nomination & Governance Committee leads the process

for Board appointments, details of which can be found in the

Nomination & Governance Committee Report on page 112.

Non-Executive Directors are appointed for fixed terms of three

years, subject to election or re-election by the Company’s

shareholders at each AGM. At the end of each term, Non-

Executive Directors may be appointed for further three-year

terms provided the Board is satisfied with the individual’s

performance and that he or she remains independent and

able to devote sufficient time to the role.

Time commitments

Board members are required to disclose significant time

commitments prior to their appointment, and candidates’

existing time commitments are taken into account by the

Board when considering new appointments. On joining the

Board, Non-Executive Directors receive a formal letter of

appointment setting out the time commitment expected

of them. Once they have met all approval and induction

requirements, Non-Executive Directors are currently expected

to commit a minimum of 30 days per annum to their roles. This

expectation is calculated based on attendance at and preparing

for Board meetings, meeting with senior management and the

Company’s shareholders, and attending strategy days, Board

dinners and training. Additional time commitments may apply

where a Non-Executive Director takes on an additional role

such as chairing a Committee.

The Board considers that each of the Non-Executive Directors

has sufficient time to meet their responsibilities both to the

Board and any Committees of which they are a member. This is

kept under review by the Nomination & Governance Committee

and more detail can be found in its report on page 114.

Induction

The Chair is responsible, with the support of the Group

Company Secretary, for arranging a comprehensive induction

programme for all new Directors. Inductions are tailored to the

individual following a skills gap analysis, and have regard to their:

background; knowledge; previous experience both professionally

and as a Director; and the role they will be performing at HL

including their committee membership. Induction programmes

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

CORPORATE GOVERNANCE REPORT

FURTHER STRENGTHENING GOVERNANCE FOR THE FUTURE CONTINUED

Independence

On her appointment as Chair, Alison Platt satisfied the

independence criteria set out in the Code.

The Board considers that each of Andrea Blance, Penny James,

Moni Mannings, Michael Morley, Darren Pope and John Troiano

are independent. In each case when assessed against the

criteria set out in the Code. Adrian Collins is not considered

independent because he is appointed by a major shareholder.

As such, throughout the period under review, the Board has

therefore satisfied the Code requirement that at least half of the

Board, excluding the Chair, comprises Non-Executive Directors

determined to be independent. This is kept under review by the

Nomination & Governance Committee and more detail can be

found in its report on page 114.

Director election and re-election

In accordance with the requirements of the Code and the

Company’s Articles of Association, all Directors will stand

for election or re-election, as relevant, at this year’s AGM.

Information on how the Board evaluates the effectiveness and

contribution of each Director can be found in the Nomination &

Governance Committee Report on page 114. The Notice of AGM

will include specific details of why the Board considers that the

contribution of the Directors seeking election or re-election

is, and continues to be, important to the Group’s long-term

sustainable success.

Board leadership and Company purpose

The Board sets the Group’s purpose, values and strategy, and

is responsible for developing and overseeing its framework of

governance, risk management and internal controls to ensure

that its business is managed effectively in an environment

that promotes and safeguards its future success.

You can read more about the Board’s role in setting and

monitoring the Group’s strategic priorities on pages 70 to 72

and in the Group’s Section 172 Statement on pages 124 to 126.

Through specific dashboards aligned to the key focus areas of

our strategy, the Board monitors and reviews progress against

targets. These dashboards are used throughout the Group,

ensuring alignment on execution and targets. Additionally, how

the Board has considered the Group’s opportunities and risks,

the sustainability of its business model, and how governance

around the Group’s risk management framework contributes to

the delivery of its strategic objectives, is set out on pages 51

to 58.

The Board also plays a key role in setting the Group’s culture

and monitoring how it is being embedded to ensure alignment

with the Group’s business priorities. The Board has been

involved in a number of ongoing key initiatives including the

further development and evolution of the Company’s purpose

and values. For more information on this work please see page

38. Additionally, the Board has been actively engaged in a more

accessible and effective communication of the Group’s strategy

and vision to create a clearer sense of purpose and common

goals and improvements to the OKRs used to oversee culture.

You can read more about the Group’s values and how the Group’s

approach to investing in and rewarding its workforce aligns to

those values on pages 38 to 42 of the Strategic Report.

Engagement with stakeholders

The Board recognises that active engagement with the

Company’s key stakeholders is fundamental to promoting the

Group’s long-term success. Details of how the Group engages

with its key stakeholders can be found on pages 22 to 23 and

information on how stakeholder interests have been considered

by the Board can be found in the Group’s Section 172 Statement

on pages 124 to 126.

Investor relations

The Board recognises the importance of maintaining good

communication with the Company’s shareholders and there is a

comprehensive investor relations programme in place to ensure

effective engagement.

The Chief Executive Officer, Chief Financial Officer and Head

of Investor Relations regularly meet with the Company’s

major shareholders to discuss performance and strategy.

This includes a series of investor roadshows following the

release of the Group’s interim and full year results, and other

meetings throughout the year, both one-on-one and in groups

at investor conferences. The Chair also meets or speaks with

the Company’s shareholders throughout the year, including

attending a series of governance roadshows, and the Senior

Independent Director, Head of Investor Relations and Group

include meetings with a variety of key stakeholders to provide the

Director with a thorough overview of the Group’s business and

the environment within which it operates. This includes meetings

with the Chair, Chief Executive Officer, Chief Financial Officer

and other members of the Board, as well as meetings with senior

management, heads of business areas and technical experts,

to gain a detailed insight into the operation of the business and

its culture. The Group Company Secretary and Group Chief Risk

Officer will also meet with the Director to provide an overview

of the Group’s corporate governance and risk management

frameworks respectively.

Ongoing Professional development

An ongoing programme of training is available to all members

of the Board. During the period under review, this has included

training sessions for the Board on the following topics:

բ Vulnerable clients

բ Complex products

բ Directors’ duties

բ Conduct rules

բ Call listening with Helpdesk

բ Inclusion

The Board also had a number of demonstration/deep

dive sessions aligned to the execution of the strategy which

included: client value proposition, savings, HLFM, pensions,

(including workplace), trading, investments and advice.

Training is also arranged to align to any specific development

needs identified by the annual Board evaluations, and individual

Directors are encouraged to devote an element of their

time to self-development.

External appointments

Directors are required to consult the Board prior to undertaking

any additional external appointments and are considered to

be a valuable development opportunity, subject to appropriate

time commitments and conflicts management. Please see

biographical information on Board members on pages 62 to 64

for further detail.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

CORPORATE GOVERNANCE REPORT

FURTHER STRENGTHENING GOVERNANCE FOR THE FUTURE CONTINUED

Colleagues

The Board believes that the Group’s people are key to its long-

term success. It ensures that the Group’s people policies and

practices promote its values to support that success.

Further information on the Group’s Responsible Employer

strategy and the policies and procedures in place to achieve its

aims, including the Group’s approach to engaging with, investing

in and rewarding its workforce, can be found on pages 38 to 42.

The Board also recognises the importance of engaging

with the Group’s workforce for the long-term success of the

business. The HL Colleague Forum was set up in January

2019 as a formal workforce advisory panel to create a direct

link between colleagues and the Board on matters of strategic

importance. Further insight is obtained on colleague views

through the Group’s annual colleague survey. The views of

colleagues have been sought on a more regular basis via

additional pulse surveys and focus groups so that we can

quickly respond to colleague sentiment and obtain colleague

insights on particular topics.

The Board believes in creating a culture of openness and

colleagues are encouraged to share their views, ideas and work

experiences. Similarly, colleagues are encouraged to raise any

concerns in confidence, and the Group has a formal policy on

whistleblowing to ensure colleagues who do speak out are

protected. Further information can be found on page 74 of

the Audit Committee Report.

Governance framework

The Board operates within a formal schedule of matters

reserved, with certain responsibilities being delegated to its

permanent Committees. Details of matters reserved for the

Board can be found on page 71. The detailed responsibilities

of the Board’s Audit, Nomination & Governance, Remuneration

and Risk Committees, along with an overview of how they have

discharged those responsibilities during the year, can be found

in the Committee reports on pages 74 to 119. The Chair of each

of the Committees reports to the Board at each meeting on

its activities since the previous meeting, and the Board keeps

under review the terms of reference of each to ensure it is

continuing to operate effectively.

Responsibility for matters that are not specifically reserved

to the Board is delegated to the Chief Executive Officer.

This includes oversight of the Group’s performance, delivery

against the strategy approved by the Board, and the effective

management of day-to-day operations within the governance,

risk and internal control frameworks it has developed. The

Chief Executive Officer has an established Group Executive

Committee with members drawn from the Executive Leadership

Team to assist him in discharging these responsibilities.

The Chief Executive Officer also receives reports from the

Conflicts Committee about improving the Group’s framework

for identifying, mitigating and protecting against conflicts of

interest, and to ensure appropriate measures are in place to

mitigate conflicts of interests between the Group’s principal

operating subsidiaries and between HL, its colleagues

and clients.

Details of the roles and responsibilities of the participants

in the Company’s governance framework can be found on

pages 66 to 67.

The Group’s principal operating subsidiaries carry out its

business of providing regulated financial products and

services. The boards of the principal operating subsidiaries

include various members of the Executive Leadership Team,

with independent Non-Executive Directors also sitting on the

Board of Hargreaves Lansdown Fund Managers Ltd in line with

regulatory requirements. Each board is responsible for ensuring

that its business is operated in accordance with relevant legal

and regulatory requirements, within the framework of the

strategy, culture and policies determined by the Board. The

subsidiary boards are assisted by Group level and subsidiary

level management committees constituted to assist in the day-

to-day management of the business.

Company Secretary are available to major shareholders who

wish to raise questions. The Committee Chairs are available

to meet with shareholders to discuss matters relevant to

their roles. The outcome of interactions with the Company’s

shareholders are regularly fed back to the Board to ensure

that, as a whole, it has a clear understanding of shareholder

views. To provide further perspective, analyst and broker

briefings are regularly provided to the Board. The appointment

of Adrian Collins as the Nominated Director, provides the Board

with insights from a founder shareholder, Peter Hargreaves,

on issues considered by the Board, as appropriate.

The Board also considers the Report and Financial Statements

to be an important medium for communicating with the

Company’s shareholders. The Board aims to use the narrative

sections to provide detailed reviews of the Group’s business

and its future development in an engaging way that is

accessible to all. Similarly, the Company’s AGM is used as

an opportunity to engage directly with shareholders and

share with them the Board’s review of performance and its

vision for the future. Further details will be set out in the

Notice of AGM that will be circulated ahead of the meeting.

This year, following the 2023 AGM where votes of less than

80% in favour were received for nine resolutions, in accordance

with its obligations, the Company has looked to consult with

all shareholders on this topic and is satisfied that any concerns

that pertain to a voting position have been appropriately

discussed. This outcome is due to be reported via HL’s website

in August 2024. It is recognised that this was outside of the six

month ‘time limit’ on this requirement within the UK Corporate

Governance Code but it was felt it was appropriate to give

Alison time to bed into the role and meet with a range of HL’s

shareholders as part of her induction and engagement process.

On balance, given Alison joined the Company in February,

it was felt it was important not to rush this given how key

understanding the views of shareholders is to the Chair’s role

and to allow more time for these discussions to take place

with Alison as the new Chair.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

CORPORATE GOVERNANCE REPORT

FURTHER STRENGTHENING GOVERNANCE FOR THE FUTURE CONTINUED

Hargreaves Lansdown plc Board

Schedule of matters reserved:

բ Approval of the Group’s strategic aims

and objectives

բ Setting the Group’s values and

standards

բ Approval of the Group’s purpose and

ensuring that this, its values and

strategy are aligned with its culture

բ Approval of the annual operating and

capital expenditure budgets

բ Overseeing the Group’s operations

and management

բ Ensuring the maintenance of a sound

system of internal controls and

risk management

բ Reviewing performance in light of

strategic aims and objectives

բ Approval of the Group’s Report and

Financial Statements and interim

financial statements

բ Approval of the Company’s dividend

policy and payments

բ Approval of major capital projects

բ Approval of communications to the

Company’s shareholders

բ Ensuring adequate succession

planning, agreeing Board appointments

and the appointment or removal of the

Company Secretary

բ Determining the remuneration policy

for the Executive Directors

Audit Committee

բ Monitors the integrity of the

Group’s financial reporting

բ Monitors the adequacy and

effectiveness of the Group’s

internal controls

բ Oversees the Group’s relationship

with its external auditor and the

effectiveness of the Internal

Audit function

Remuneration Committee

բ Oversees and keeps under review

the remuneration policies for

Executive Directors, Material Risk

Takers and colleagues generally

բ Determines total remuneration

for Executive Directors, senior

management and Material Risk

Takers, and associated targets for

performance related pay

Nomination & Governance

Committee

բ Monitors the composition of

the Board to ensure it remains

appropriate

բ Recommends appointments to the

Board and its Committees

բ Conducts succession planning for

the Board and senior management

բ Oversees the annual evaluation of

the Board’s effectiveness

Group Management Committees

բ Support the Group Executive Committee in its oversight of

matters including: Risk, Conduct and Client Outcomes, ESG,

Product Governance and Operational Resilience

Conflicts Committee

բ Oversees the Group’s conflicts of interest policy

and framework

բ Reviews conflicts of interest within the Group, the

sufficiency of mitigating measures and determines

appropriate action where material conflicts arise

Risk Committee

բ Reviews and advises the Board

on changes to the Group’s risk

appetite, risk profile and future

risk strategy

բ Monitors the effectiveness and

improvements being made to

the Group’s risk management

framework

բ Oversees the delivery of the

Group’s ICARA

Chief Executive

Officer

Responsible for executive leadership

of the Group in accordance with

Board-approved strategic objectives

Executive Committee

Established by the Chief Executive

Officer to help him discharge

his duties

17%

Governance,

risk & regulatory

22%

Financial

reporting

& audit

55%

Business

performance

& strategy

Standing items

including updates

from Remuneration

and Nomination &

Governance

Committees

Overview of the Board’s activities

in the year to 30 June 2024

Governance

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

CORPORATE GOVERNANCE REPORT

FURTHER STRENGTHENING GOVERNANCE FOR THE FUTURE CONTINUED

Other key matters considered by the Board during the period

under review include:

բ Business performance, through regular updates from the

Chief Executive Officer;

բ Progress against strategic initiatives, via regular reporting

from the Chief Executive Officer and regular deep dives into

lines of business;

բ Financial performance and investor relations, via the Chief

Financial Officer’s regular updates;

բ Client value proposition and the evolving market

opportunities

բ The Group’s liquidity and capital adequacy, and the approval

of its 2023 ICARA;

բ Approval of the Group’s operating plan;

բ Maintaining oversight of the Group’s risk management

framework, and approval of its operational resilience

self assessment;

բ Maintaining oversight of potential or actual material litigation

and/or regulatory reviews;

բ Receiving updates on elements of the People strategy

from the Chief People Office and an overview of the annual

colleague survey and planned next steps;

բ Approval of updates to the Group’s key policies, including

conflicts of interest, whistleblowing, human rights,

tax strategy and Board diversity;

բ Progress of recommended actions from the annual

evaluations of Board performance, including further

embedding best practice and developing the resilience

and expertise of the Board; and

բ Receiving progress updates against Consumer Duty.

ESG and sustainability

As part of its role in overseeing the Group’s long term strategy

the Board engages in topics relating to ESG, climate change

and sustainability. For more information on our ESG governance

please see the TCFD report on pages 43 to 50.

Audit, risk and internal control

Audit

The Board is responsible for establishing the policies and

procedures that ensure the independence and effectiveness

of the Group’s Internal Audit function and the external auditor,

and for satisfying itself as to the integrity of the financial and

narrative statements in the Report and Financial Statements.

The Board delegates responsibility to its Audit Committee to

oversee the Group’s Internal Audit function and the Group’s

relationship with its external auditor. The Audit Committee is

also responsible for monitoring the integrity of the Group’s

financial reporting and the processes and controls that

support it, and for advising the Board as to whether the

Report and Financial Statements provide a fair, balanced and

understandable assessment of the Company’s position and

prospects. The terms of reference for the Audit Committee can

be found here: www.hl.co.uk/about-us/board-of-directors

The main features of the Group’s internal control and risk

management systems that ensure the accuracy and integrity of

its financial reporting include:

բ The utilisation of appropriately qualified and experienced

colleagues, and regular knowledge sharing within the team;

բ The use of appropriate information security and access

controls around the key systems used in the Group’s financial

reporting processes;

բ Appropriate segregation of duties to ensure that no individual

controls the end-to-end process;

բ Continuing enhancements to the Group’s Risk Management

Framework including robust risk identification, assessment

and management;

բ Detailed processes and controls around the reconciliation of

the Group’s office accounts, the recognition of revenue and

the Group’s tax balances, and payment processes; and

բ A detailed process of reconciliation and review by

management of data extracted from the general ledger

system for the production of management accounts.

The process of review includes receiving a report from

management on the effectiveness of the financial control

systems in addition to independent assurance on the

effectiveness of controls contained in the internal audit plan.

Board activities and allocation of time

Given the appointments of a new CEO and a new Chair

during the reporting period, the Board determined that

it was appropriate to devote a significant amount of time

during the period under review to consider and oversee the

implementation of the Group strategy. The Board was fully

engaged in its development and continues to be so during its

execution with deep dives into specific lines of business carried

out during the year. The Board also spent time overseeing

the Group’s ongoing business performance including regular

updates from the Chief Executive Officer and other members

of the Executive Leadership Team and the review and approval

of the Group’s annual operating plan. The Board has continued

to receive periodic reports relating to events arising out of the

suspension of, and subsequent decision by Link Asset Services

to wind up, the LF Equity Income Fund (formerly Woodford

Equity Income Fund).

The following chart illustrates the time spent by the Board on

matters within the categories stated.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

CORPORATE GOVERNANCE REPORT

FURTHER STRENGTHENING GOVERNANCE FOR THE FUTURE CONTINUED

The Audit Committee reviewed the Internal Audit reports for

the period as well as the progress of actions against any prior

year observations on controls and considered year end reports

on various aspects of the internal control environment of the

business from Internal Audit, the Group Chief Risk Officer

and the Chief Financial Officer. The Committee also receives

observations on the control environment from the external

auditor and external auditor reports are challenged by members

at each relevant meeting. Periodic reports on the Group’s

whistleblowing arrangements are also reviewed to ensure these

do not indicate any material systemic control or governance

failures, which they did not.

Further details can be found in the Audit Committee report

on pages 74 to 80. Statements from the Board as to the

adoption of the going concern basis for preparing the financial

statements and the Board’s responsibility for preparing the

Report and Financial Statements can be found on page 123

of the Directors’ Report and the Statement of Directors’

Responsibilities on page 127 respectively.

Risk management and internal controls

The Board is responsible for the systems of risk management

and internal control and for reviewing their effectiveness. It is

responsible for establishing procedures for risk management

and for monitoring the Group’s risk management framework

and system of internal controls. There is an ongoing process

for identifying, evaluating and managing the principal risks

faced by the company which is reviewed and challenged by the

Risk Committee with further details set out on pages 51 to 58

of the risk management and principal risks and uncertainties

section of this report. The systems have been in place for the

period under review and the Board delegates responsibility for

monitoring those systems to its Audit and Risk Committees with

each carrying out an annual review of their effectiveness on the

Board’s behalf. Together, this review covers all material controls,

including financial, operational and compliance controls and

risk management systems. The crossover of membership

between the Audit Committee and Risk Committee assists in the

exchange of relevant issues and the facilitation of associated

discussions. The Executive Risk Committee is responsible

for ensuring appropriate systems of internal control and risk

management are in place, operating within risk appetite and

supporting good client outcomes and the Group Chief Risk

Officer, as Chair of that committee, has unfettered access to

the Risk Committee Chair to escalate and report to the Risk

Committee where necessary. The year end review process

includes receiving reports from the Chief Executive Officer and

Group Chief Risk Officer on their own assessment of controls

and risk management. Following the review activity undertaken

by its Committees, the Board is satisfied that the Group’s risk

management and internal control systems are adequate and

have continued to improve throughout the period under review,

this has been reflected this year in the output of the work

undertaken on risk maturity. The Board continues to encourage

the continued enhancements to risk management and maturity,

aligned to the Group’s scale and complexity as it continues to

grow and implement the strategy. Further information of the

continued enhancements planned can be found on page 119

of the Risk Committee report.

The Board is also responsible for determining the nature and

extent of the principal risks the Group is willing to take in order

to achieve its long-term strategic objectives. Supported by the

Risk Committee, the Board carries out a robust assessment of

the Group’s emerging and principal risks when assessing the

prospects of the Company over the longer term. The outcome

of that assessment, along with a description of the Group’s

principal risks, the procedures in place to identify emerging

risks, and an explanation of how these risks are managed or

mitigated can be found on pages 51 to 58.

A description of the main features of the Group’s risk

management and internal control systems, including the ‘three

lines of defence model’, can be found on pages 51 to 58.

The terms of reference for the Audit and Risk Committees can

be found here: www.hl.co.uk/about-us/board-of-directors

Remuneration

The Group’s remuneration policies and practices are designed

to support its strategic objectives and promote its long-term

sustainable success. A summary of how the Company has

complied with the remuneration requirements set out in the

Code, along with details of the Remuneration Committee’s

activities during the period under review, the levels of

Directors’ remuneration and detail relating to the new Directors’

Remuneration Policy, can be found on pages 85 to 92

The terms of reference for the Remuneration Committee can be

found here: www.hl.co.uk/about-us/board-of-directors

Conflicts of interest

The Board takes action to identify and manage any conflicts of

interest that arise to ensure that the interests of the Company’s

shareholders as a whole are protected.

All Directors have a duty to avoid situations that may give rise

to conflicts of interest. Directors are responsible for notifying

the Chair and the Group Company Secretary as soon as

they become aware of any actual or potential conflict. The

Company’s Articles of Association permit the Board to consider

and authorise any situations where a Director has an actual

or potential conflict, and a formal procedure is in place for

considering, recording and, if appropriate, authorising conflict

situations. Conflicts of interest are included as a standing

agenda item at each Board and Committee meeting and, in

determining whether to authorise an actual or potential conflict,

the Board will take into account the specific circumstances and

whether to impose conditions on the Director in the interests

of the Company.

The Conflicts Committee reports into the CEO which is

responsible for ensuring there is appropriate governance

and ownership around enhancements to the conflicts

management framework within the Group. In addition,

conflict management is enhanced through the separation of

investment decisions and broad membership of investment

related oversight committees including external members

as appropriate. During the year mandatory conflicts training

was provided to all colleagues and we continued to embed

our conflicts notification and management processes which

provide a common oversight process to both business and

to personal conflicts management.

Consumer Duty

The Board attests that Hargreaves Lansdown is substantively

compliant with its obligations under PRIN 12 and PRIN 2A,

that appropriate assessments and checks have taken place,

including that its future business strategy has been assessed to

ensure it is aligned with its obligations under the Consumer Duty

with minor areas of enhancement identified to further support

good client outcomes.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

AUDIT COMMITTEE REPORT

Supporting the control

environment and financial

resilience through strong

androbust processes

Darren Pope

Chair of the Audit Committee

Dear Shareholder

Having joined the Board as Audit Committee Chair designate

in September 2022, I was appointed as Chair of the Committee

in November 2023, and am pleased to present my first report

to you on the Committee’s activities in the year as Audit

Committee Chair.

I would like to extend my thanks to my predecessor, Roger

Perkin, for his leadership of the Committee and high quality

and extensive handover.

Role of the Audit Committee

The Board delegates certain responsibilities to the Committee

which are set out in its terms of reference on the Group’s

website and are summarised below:

Assess the integrity of the Group’s financial reporting and

disclosures. The Committee has reviewed and challenged

the appropriateness of accounting policies, significant issues

and judgements and the assumptions used in supporting the

disclosures with regard to the Group’s ability to continue as a

going concern and maintain longer term viability under periods

of stress. The Committee has additionally ensured that all

reporting is fair, balanced, and understandable. The Committee

has had enhanced focus this year on verifying non-financial

information (including TCFD) contained in the Report and

Financial Statements this year. This work when taken together

has identified no material concerns with regard to the financial

reporting and disclosures by the business. The rigour with

which the Report and Financial Statements have been prepared

and reviewed by management and the Board has been further

developed this year.

Oversee and assess the effectiveness of the Group’s broad

financial control environment that supports these financial

reporting and disclosures including CASS. The Committee

receives regular reports from both the CFO, Internal Audit,

Head of CASS Oversight and External audit with regard to the

effectiveness of the financial control environment and ensures

actions to improve or mitigate these controls are undertaken in

a timely way. During the year we have seen a trend in reducing

the number of overdue Internal Audit actions and during the

course of the year we reviewed all outstanding audit actions to

ensure that resources are focused on the most important issues

first with some less critical actions being assigned revised later

completion dates to ensure resources and focus on more critical

actions. Regular updates have been provided by the Head of

CASS Oversight on the CASS programme resulting in sustained

progress in the mitigation of the higher risk items.

Review the activities and performance of the Internal Audit

function. The Internal Audit team has filled all vacancies and

has completed all planned work for the year. The internal quality

assessment carried out this year shows consistent results to the

conclusion of the 2021 external quality assessment that Internal

Audit is operating at a very strong level. Overall, where there

are some control weaknesses that continue to require ongoing

attention the Committee remains satisfied that the Group’s

internal control risk management frameworks are adequate. We

continue to focus on working with the Risk Committee to ensure

that the overall assurance plan across both second and third

line of defence maximises coverage of the most important risk

areas of our business.

Review the activities and performance of the External Auditor.

PwC has been our auditor for 11 years. The Committee annually

reviews the scope and cost of PwC’s audit work, assesses

its independence and objectivity and looks at its overall

performance. The Committee continues to welcome both the

levels of skill and robust challenge from Darren Meek and his

team which helps underpin the Committee’s confidence in the

financial statements and related disclosure.

Review and monitor the Group’s whistleblowing procedures

and whistleblowing cases. The Committee receives periodic

reports on the Group’s whistleblowing arrangements (known as

‘Speak Up’) and was pleased to see high levels of awareness

and use of the programme. While the speak up programme

ENSURING THE CONTINUED

INTEGRITY OF THE GROUP

14%

External Audit

15%

Internal Audit

10%

Internal

Controls

Whistleblowing

28%

Financial

Reporting

28%

Governance

and Other

Overview of the Committee’s activities

in the year to 30 June 2024

Audit committee

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

AUDIT COMMITTEE REPORT

ENSURING THE CONTINUED INTEGRITY OF THE GROUP CONTINUED

has not indicated any material systemic control, governance,

or behavioural failures during the year it has helped shape

organisational communication through a period of considerable

uncertainty and change.

The remainder of the report sets out the work of the Committee

in more detail as to how the Committee has discharged its

responsibility during the period under review.

The Committee works closely with the Risk Committee on risk

and control matters and both Committee Chairs are members

of the other Committee to ensure a co-ordinated approach. The

operation of effective key controls for assessing and managing

the Group’s key risks is delegated to both the Audit and

Risk Committees

Composition and meeting attendance

The Committee is comprised solely of independent Non-

Executive Directors.

The Board has satisfied itself that the Committee as a whole

has an effective balance of skills and experience to perform its

responsibilities. Each of Darren Pope (as Chair), Roger Perkin,

prior to stepping down in December 2023 Andrea Blance,

and John Troiano have significant experience of the asset

management sector and/or the wider financial services industry.

Darren Pope has recent and relevant financial experience and

competence in accounting and audit. Additionally, both Darren

Pope and Andrea Blance are qualified accountants.

Ongoing updates are provided to assist Committee members

in performing their duties regarding matters relevant to their role

and responsibilities. During the period, this included a session

with the external auditor. This covered the Department for

Business and Trade (DBT) proposals on the future of audit and

corporate governance and what this means from a corporate

reporting and corporate governance perspective.

The Committee met eight times in the period under review.

The attendance of members at the meetings across the year

is set out in the table on page 67. Other individuals attend

Committee meetings at the request of the Committee Chair.

This will usually include the Chair of the Board, the Chief

Financial Officer, the Chief Internal Auditor, Group Chief Risk

Officer, and the external auditor. The Committee has access

to the Group Company Secretary, whose nominee acts as

secretary to the Committee. The Committee is authorised to

obtain independent professional advice where it considers

it necessary.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

AUDIT COMMITTEE REPORT

ENSURING THE CONTINUED INTEGRITY OF THE GROUP CONTINUED

Financial statements

Key areas of review

and challenge Key discussions, decisions, and recommendations

Accounting, tax,

and financial reporting

Overseeing and monitoring the

integrity of the Group’s financial

statements, including interim and

full year results and related results

announcements, as well as other

statements requiring Board approval

containing financial information.

The Committee:

բ Reviewed the process of producing the reports under the remit of the Chief Financial Officer, which included monitoring the

procedures in place to ensure all contributors attested to completeness, accuracy, and appropriateness of the disclosures.

բ Reviewed the Group’s Sustainability Accounting Standards Board (SASB) disclosure prior to its publication on the

Company’s website.

բ Provided challenge to the application of significant accounting policies across the Group that feed into its financial statements.

բ Challenged the methods used to account for significant or unusual transactions, such as through the application of IAS

38 (Intangible Assets) in relation to the amounts held by the Group’s subsidiaries including internally developed software

and goodwill.

բ Carefully considered if the external reporting met the requirements to be suitably fair, balanced, and understandable.

բ Received reporting on and considered tax matters impacting the Group, including tax in financial reporting, Group and

operational tax compliance.

բ Reviewed and recommended to the Board the tax strategy for FY24.

Accounting policies The accounting policies, disclosures,

and amendments to accounting

requirements.

The Committee:

բ Reviewed and challenged management on the appropriateness of the accounting policies and how they were applied to the

Group’s financial statements and was satisfied that they did.

բ Reviewed all new guidance and new UK accounting policies for applicability and amended as required (or confirmed no

changes required).

բ Considered the accounting estimates, judgements and any significant issues that have arisen in preparing the Group’s

financial statements.

բ Challenged management on considerations taken into account and requests additional reports when it has needed further

details on specific aspects scrutinising the clarity and completeness of related disclosures.

բ Has paid due regard to any related correspondence with the external auditor and any material adjustments resulting from the

external auditor.

Revenue recognition Measuring revenue at the fair value

of the consideration received or

receivable and represents amounts

receivable for services provided in

the normal course of business, net of

commission payable, discounts, VAT

and other sales related taxes.

The Committee:

բ Considered the veracity of the Group’s revenue streams in the period, which continue to be non-complex and primarily consist

of high-volume, low value transactions.

բ Receives assurance on revenue calculations both internally through its oversight of the Group’s internal controls and from

the external auditor’s approach to recalculating the Group’s significant revenues streams and carrying out sample testing

on the remainder.

բ Additionally receives assurances from the external auditor’s reviews and sample testing of the operational transactions that

drive the revenue to ensure that these were booked in a timely and accurate fashion.

բ Reviewed management information to confirm all revenue movements and drivers were understood and consistent with final

reported revenue.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

AUDIT COMMITTEE REPORT

ENSURING THE CONTINUED INTEGRITY OF THE GROUP CONTINUED

Key areas of review

and challenge Key discussions, decisions, and recommendations

Carrying value

of investments

in subsidiaries

The financial statements provide a

list of the Parent’s investments in its

subsidiary companies.

The Committee:

բ Reviewed and approved a change in methodology.

բ Reviewed the valuation models of Hargreaves Lansdown Savings Limited (HLSL) and Hargreaves Lansdown Advisory Services

(HLAS) to ensure that they fairly reflected the correct carrying value.

Contingent liabilities Aligned to IAS 37. The Committee:

բ Reviewed and carefully considered the contingent liabilities for the Group.

բ Full details of the matters considered can be found in note 5.3 to the consolidated financial statements on page 158.

TCFD Developing the reporting year

on year to enhance the insight

provided against the following four

areas of Governance, Strategy, Risk

Management, Metrics and Targets

to align with the recommendations

set out in the Task Force on Climate-

Related Financial Disclosures (TCFD)

framework.

The Committee:

բ Reviewed TCFD and the related sustainability reporting together with the process and controls that support it, requesting

assurances from Internal Audit through a light touch audit.

Going concern and

long-term viability

The Board is required to confirm

whether it has a reasonable

expectation that the Company and

Group will be able to continue to

operate and meet their liabilities

for a specified period. The viability

statement must also disclose the

basis for the Directors’ conclusions

and explain why the chosen

period is appropriate

The Committee:

բ Reviewed and challenged the going concern position for each Group entity.

բ Considered the process to support the viability statement in conjunction with an assessment of principal risks and taking into

account the assessment by the Risk Committee of stress testing results and risk appetite through ICARA.

բ Recommended the draft viability statement to the Board for approval.

բ Concluded that the Company and Group have adequate resources to continue in operational existence for a period of at least

12 months from the date of approval of the financial statements.

բ Confirmed to the Board that it was appropriate for the Group’s financial statements to be prepared on a going concern basis.

բ Regarding the firm offer on 9 August 2024, while there exists a material uncertainty around the Group’s ability to continue as a

going concern, concluded that the going concern basis remains appropriate for the preparation of the financial statements.

Senior Managers and

Certification Regime

(SMCR)

Hargreaves Lansdown Asset

Management Limited (HLAM) is an

enhanced firm under SMCR but does

not have a separate Audit Committee.

The Committee:

բ Reviewed the HLAM accounts for recommendation to the Board of that company.

Alternative

Performance

Measures

The Committee:

բ Satisfied itself the performance measures were appropriately reported, calculated and where relevant reconciled to

statutory measures.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

AUDIT COMMITTEE REPORT

ENSURING THE CONTINUED INTEGRITY OF THE GROUP CONTINUED

Report and Financial Statements and interim results

Through considering significant accounting issues, policies

and judgements throughout the year, the Committee plays

an important role in the production of the Report and Financial

Statements and interim results. This includes reviewing and

challenging the assumptions that support the use of the going

concern basis for the preparation of the financial statements

and the statement given by the Directors as to the Company’s

longer-term viability, which can be found on page 55.

In addition, the Committee also undertakes a broader review

of the content of the Report and Financial Statements to advise

the Board as to whether, taken as a whole, it is fair, balanced,

and understandable and provides the information necessary

for shareholders to assess the Group’s performance, business

model and strategy. This supports the Board in providing the

confirmations set out on page 127.

In considering the wider content of the Report and Financial

Statements, the Committee has focused its attention to

ensuring the narrative sections are consistent with, and

provide context for the financial statements, and outline an

appropriate balance between the articulation of successful

outcomes, opportunities, challenges, and risks. In addition to

considering its content, the Committee oversees the process

for preparing the Report and Financial Statements and received

regular updates throughout the period on planning for the

year end reporting, with overall responsibility for coordinating

production assigned to the Chief Financial Officer.

External Audit

The Committee is responsible for overseeing the Group’s

relationship with its external auditor, PwC, which has been

retained since 2014, following an audit tender process in 2022,

whereby PwC were retained.

In addition to oversight of the audit process itself, the

Committee is responsible for monitoring the Group’s other

interactions with the external auditor to ensure that its

independence and objectivity are maintained.

The Committee has considered and prepared for the adoption

of the Minimum Standard as issued by the FRC and in the year-

to-date has had no matters on which it is required to report.

External audit process

The Committee has overseen the end-to-end audit process and

reviewed and approved the external auditor’s engagement letter

and the detailed audit plan to ensure appropriateness of scope.

In approving the proposed audit fees, the Committee paid

particular attention to ensuring they were appropriate to enable

an effective and high-quality audit and were benchmarked to

ensure not excessive.

The Committee reviewed the findings from the audit process

with the external auditor, which included a discussion of key

audit and accounting matters including significant judgements,

including the estimation uncertainty in relation to the valuation

of investments in subsidiaries, as disclosed in note 6.5 of the

financial statements of the Company on page 169, and the

external auditor’s views on its interactions with management.

The Committee reviewed and recommended to the Board that it

signs the representation letter requested by the external auditor

in respect of its audit of the financial statements. The views of

the external auditor were sought at the Committee’s meetings,

which included sessions without management present, to

discuss its remit and any issues arising from the audit.

External auditor effectiveness and independence

The Committee is responsible for assessing the expertise,

resources and qualifications of the external auditor, and

effectiveness of the audit process. In discharging these

responsibilities, the Committee has considered information

from a variety of sources. It received a report from the external

auditor on its own internal quality control procedures, which

included reference to the outcome of the FRC’s 2022/23 AQR

inspection report.

The views of management and the Committee members were

sought on the efficiency of the year end process and the

performance of the external auditor was discussed by members

as part of the Committee’s effectiveness review. In addition to

this a survey obtaining feedback from those involved with the

Audit process was circulated to obtain a wider view from the

business. Audit quality was assessed on a continuous basis

through provision of the reports from the external auditor which

are reviewed and challenged by members at each relevant

meeting. The audit quality had previously undergone some

scrutiny as part of the audit tender process conducted in

2022 and provided some benchmarking comparison to other

audit firms. The Committee noted that the external auditor

has demonstrated challenge and professional scepticism in

performing its role through the provision of regular reporting

and drawing the Committee’s attention to key matters during

Committee meetings. Challenge provided by the external

auditor on completeness issues in the related party listings

provided by management has enabled the Committee to

oversee the implementation of a more robust verification

process providing assurances that the data held is complete

and accurate.

As part of its role to monitor and assess the independence

and objectivity of the external auditor, the Committee has

considered the FRC’s Revised Ethical Standard 2019 (the

Standard) and paid particular attention to the Group’s wider

relationship with the external auditor through its provision

of non-audit services to the Group, the rotation of the senior

audit partner, and the external auditor’s tenure with the Group,

as detailed below.

The external auditor provided the Committee with a report

confirming that, in line with the FRC’s Standard and having

regard to the threats and safeguards to independence, it had

concluded that there were no matters that impaired or restricted

its objectivity as auditors to the Group.

The Committee considered the information and views presented

to it and has concluded that the external audit process was

effective, that it is satisfied with the performance of the external

auditor, and that there are policies and procedures in place

adequate to protect the independence and objectivity of the

external auditor. Accordingly, the Committee has recommended

to the Board that a resolution is put to shareholders at the

upcoming AGM for the reappointment of the external auditor.

Non-audit Services

A key component of the Committee discharging its responsibility

for monitoring the independence and objectively of the external

auditor is to provide oversight of the non-audit services

provided to the Group. In addition to the report the Committee

received concerning the safeguards to the external auditor’s

independence, the Committee also reviewed reports from the

Group’s Finance function prior to the publication of the Group’s

interim and full year results on all non-audit services provided to

the Group by the external auditor during the period under review.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

AUDIT COMMITTEE REPORT

ENSURING THE CONTINUED INTEGRITY OF THE GROUP CONTINUED

The Committee has responsibility for recommending to the

Board the Group’s policy on non-audit services supplied by

the external auditor. The policy is specifically designed to

ensure that the external auditor’s independence and objectivity

is maintained. It sets out a number of permissible non-audit

services which the external auditor may carry out in line with the

FRC’s Standard. The Committee, in particular, considers that it is

desirable that the external auditors also perform the assurance

services required by regulation in respect of CASS and

Safeguarding as this provides efficiencies in the audit process

and, in its judgement, the threats to the auditors’ independence

are insignificant. All non-audit services must be approved in

advance by the Committee.

In line with the FRC’s Standard, the policy specifies that the

maximum non-audit fees that the external auditor can receive

from the Group is 70% of the average of the audit fees incurred

by the Group over the previous three years. Assurance services

in relation to CASS and safeguarding are specifically excluded

from the fee cap. The full policy can be found on the Group’s

website. During 2024 the Group paid PwC £1,676,998 (FY23:

£1,169,998) for audit and audit-related assurance services

and £98,106 (FY23: £71,106) for other assurance services,

giving a total fee to PwC of £1,775,104 (FY23: £1,241,104),

94% was therefore for audit and related services and 6% for

other assurance services. Further information on Auditors’

Remuneration is set out in note 1.4 to the financial statements.

Tenure of the external auditor

The Company has complied throughout the period under review

with the provisions of The Statutory Audit Services for Large

Companies Market Investigation (Mandatory Use of Competitive

Tender Processes and Audit Committee Responsibilities)

Order 2014, with regards to the tenure of the Group’s external

auditor, the tender process for auditor appointments and Audit

Committee responsibilities.

The lead audit partner for the period under review was Darren

Meek, in his fourth year of appointment. During the year there

has been a change in the audit director, with the previous audit

director providing a comprehensive handover supported with

an induction covering key aspects of the audit provided by

the Group Financial Controller. The Company considers that,

taking account of the controls in place to maintain the external

auditor’s independence and objectivity, the relationship the

Group has developed with PwC is conducive to an efficient

and effective audit and, taking into account the significant

transformation agenda, that it is therefore in the best interests

of the Company’s members as a whole to maintain that

relationship for the financial year ending 30 June 2025.

As previously reported, the Group undertook a formal,

competitive tender process in 2022 during which audit quality

was of paramount importance. The Committee recommended to

the Board that, subject to continuing satisfactory performance,

members will be invited to vote, at the Company’s AGM,

to reappoint PwC in respect of the audit of the financial

statements for the year ending 30 June 2025.

Internal Audit

The Group’s Internal Audit function’s role is to provide objective

assurance and advice to both the Board and management on

the Group’s internal control and risk management framework.

The Committee provides oversight of the programme of work

carried out by the function, as well as monitoring and reviewing

its role and effectiveness, including its objectivity.

The role of the Group’s Internal Audit function is defined

by the Internal Audit Charter, which sets out its objectives,

responsibilities, and scope of work. The Charter was subject

to review this year based on industry best practice and was

approved by the Committee in February 2024.

The function’s detailed work programme is set out in a rolling

12-month Internal Audit Plan. This is reviewed and approved

by the Committee every six months and informs the audit

planning and priorities through continuous risk assessment.

The Committee is satisfied that the Plan covers the Group’s key

risks, regulatory priorities and strategic ambitions and aligns

with the assurance activity being carried out by the Group’s

second line function and the external auditor. Important topics

covered by the Audit Plan this financial year include Consumer

Duty implementation, Strategic Change Execution, Client

Service and Outcomes, Risk framework and key IT controls

including cyber security and resilience. Any Plan modifications

are approved by the Committee.

During the period, regular reports were received on progress

against the Plan and these reports form a crucial input to our

assessment of the internal control environment. (see below)

The Committee uses this information to assess the function’s

effectiveness and to ensure that it is adequately resourced

and fully equipped to fulfil its mandate and perform in

accordance with the Internal Audit Charter and relevant

professional standards. The Internal Audit function maintains

a robust process of internal quality assurance and the results

of this continue to support the very positive external quality

assessment received in 2021.

The Chief Internal Auditor is a permanent invitee to the

Committee’s meetings and meets regularly with both the

Committee Chair and its members without management present.

Having considered the information provided to it throughout the

period under review, the Committee remains satisfied that the

quality, experience, and expertise of the function is appropriate

and that it is operating effectively. Despite some turnover during

the year the function finished the year at full headcount.

The Committee continues to support the maintenance of the

function’s objectivity. It ensures the Chief Internal Auditor has

direct access to both the Chair of the Board and the Committee

Chair, in each case without the involvement of management,

and they receive reporting directly from the function.

The Committee Chair is responsible for setting objectives for the

Chief Internal Auditor, appraising his performance (with support

from the Chief Executive Officer) and recommending his annual

remuneration for approval by the Remuneration Committee.

Internal controls

In conjunction with the Risk Committee, the Committee

provides assurance to the Board on the Group’s system

of internal controls.

A key element of this is the review of the financial control

systems that identify, assess, manage, and monitor financial

risks, which are an important aspect of ensuring the integrity

of the Group’s financial statements as a whole.

The Committee receives reports from management on the

effectiveness of those controls in addition to the independent

assurance on the effectiveness of controls contained in the

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

AUDIT COMMITTEE REPORT

ENSURING THE CONTINUED INTEGRITY OF THE GROUP CONTINUED

internal audit plan. The committee also receives observations

on the control environment from the external auditor. During the

period, the Committee has:

բ Reviewed the Internal Audit reports for the period as well as

the progress of actions against any prior year observations

on controls.

բ Considered year end reports on various aspects of the internal

control environment of the business from Internal Audit, the

Group Chief Risk Officer and the Chief Financial Officer.

Overall, the Committee is satisfied that the Group’s internal

control and risk management framework comprises adequate

arrangements, actions, and mitigating controls. In order to

support the continuing growth and increasing complexity of

the Group, the Committee recognises that there is a need

to continue to invest in improving and strengthening the

Group’s risk culture and the risk management and internal

control systems. Further information on the enhancements

can be found on page 119 of the Risk Committee Report.

The Committee has reviewed and approved the statements

included in this Report and Financial Statements relating to

risk management and longer-term viability on page 55 of the

Strategic Report and on the adequacy of the Group’s internal

control and risk management arrangements on page 73 of the

Corporate Governance Report.

Whistleblowing and Fraud

The Committee Chair is the Whistleblowers’ Champion for

the Group, and the Group is committed to creating a culture

of openness, integrity, and accountability. A formal policy is in

place which encourages colleagues and contractors to raise

concerns, in confidence, about possible wrongdoing. Awareness

of the policy is achieved through regular engagement and

training throughout the year. Plans are in place for this to feature

more significantly and frequently through colleague feedback

during the next reporting period. Changes to the policy require

the approval of the Board, and the Committee has responsibility

for regularly reviewing the adequacy of arrangements to ensure

reports are investigated, appropriate action is taken where

necessary, and that appropriate steps are in place to safeguard

reporters against victimisation.

During the period, the Committee received regular reporting

on the Group’s Speak Up arrangements, including management

information on concerns raised. The Committee was satisfied

that the strength of the arrangements is aligned with other

financial services organisations, which was supported by an

independent benchmarking exercise conducted by Protect, a

leading charity supporting employers with their whistleblowing

arrangements. The Speak Up arrangements are an important

internal control for the Group and the Committee regularly

updated the Board on their operation, where no fundamental

weaknesses had been identified. Ongoing improvements to

the arrangements included enhancements to the independent

reporting site, making our arrangements available to the

third-party vendors and improving the functionality of our

reporting tool.

As part of the Group’s commitment to ensure reasonable

procedures are in place to prevent fraud, the Committee also

received a report on fraud risk assessments which outlined the

controls and measures in place to detect fraud and safeguard

clients’ assets. No material issues were identified.

Audit Committee evaluation

The Committee is required to undertake a review of its

performance at least annually to ensure it is operating

effectively and in line with its terms of reference. This review

was carried out in April 2024. A confidential survey of members

was undertaken after which a separate session was held with

the members which sought their views on areas such as the

division of responsibilities between the Committee and the

Risk Committee, the documentation provided by management

and whether Committee members were comfortable that they

had been provided with a complete and accurate picture of the

assurance landscape with a process in place to assess audit

quality on a continuous basis. The Secretary to the Committee

also undertook an exercise to ensure the Committee had

fulfilled its responsibilities as per its Terms of Reference as

well as against the FRC’s Minimum standards. The outcomes

of these activities confirmed that the Committee had acted in

line with its remit during the period under review. Improvements

implemented included minor revisions to the Terms of Reference

following the publication of both the BEIS and the Corporate

Governance Code consultations, as well as continuing to

align the operation of effective key controls for assessing and

managing the Group’s key risks with the Risk Committee.

Audit Committee priorities for 2024/25

Looking ahead to the next financial year, it is anticipated that

the Committee will focus in particular on:

բ Ensuring attention continues to be given to the Committee’s

key responsibilities, including preparing for attestation on

controls to be made in the future as part of the corporate

governance updates.

բ Continued oversight of the ongoing CASS change

programme particularly the completion of tactical mitigation

work and the completion of strategic solutions and

բ Providing oversight around developing our TCFD reporting.

Darren Pope

Chair of the Audit Committee

14 August 2024

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

ANNUAL STATEMENT BY THE CHAIR OF THE REMUNERATION COMMITTEE

We drive great performance

by empowering colleagues to

focus on the right things in the

right way.

Moni Mannings

Chair of the Remuneration Committee

Dear Shareholder

Firstly, I would like to thank our shareholders for their support at

the 2023 AGM for our Directors’ Remuneration Policy (‘Policy’).

This Committee spent much time last year developing this

Policy, which increased the proportion of variable pay measured

over the long-term, as well as engaging with shareholders on

our approach to executive remuneration. Overall, the Committee

believes that this new Policy better aligns our approach with our

strategy, and the long-term sustainable growth and returns that

this will deliver to all stakeholders.

I am now pleased once again to present our Directors’

Remuneration Report for the year ended 30 June 2024 which

sets out how our new Policy applied during the year and will

be implemented for the forthcoming year.

Business context in 2024

This year, led by our new Chief Executive Officer, we have seen

progress against our strategic goals and our ongoing focus on

client service, client experience and value continues to deliver

results. Our client numbers, which increased materially over the

year, remain by far the largest in the sector with client retention

levels at 91.4%. We also reached a record platform AUA of

£155.3 billion, while delivering a healthy statutory Profit Before

Tax (PBT) which was driven by a focus on key revenue drivers

and robust cost control.

We continue to invest in the value proposition for our clients,

which this year included the launch of new products and

services as well as the continued evolution of our digital offering

to provide a more seamless client journey. This is supported

by a focus on making HL a great place to work and ensuring

we have the right teams in place to deliver the strategy. Over

the year, we have strengthened our leadership team and, more

broadly, have renewed our People Strategy. I am also pleased to

note the strong progress against a stretching diversity and ESG

agenda in line with the values of our business.

While the Committee is pleased by the progress seen to date

and the foundations built this year, it is recognised there is still

more to do to deliver against our strategic priorities.

Incentive award outcomes for 2024

In determining Executive Director bonuses, the Committee

reviewed financial and non-financial performance in key areas of

focus. The Committee also considered carefully:

բ Delivery of the strategic goals in the year, including

the personal contribution of each Executive Director

towards these;

բ An assessment of risk events, risk maturity and control

effectiveness; and

բ Whether the overall outcomes aligned with the wider

stakeholder experience.

Annual bonus outcomes are set out in summary on page 84

and in detail on pages 97 to 99. In determining the outcomes,

the Committee was satisfied that there was no reason to apply

discretion and approved the outcomes as calculated.

The Committee also undertook an assessment of the

underpinning performance conditions of the 2019 SPP

award (5-year performance period) and the 2021 SPP award

(3-year performance period). After careful consideration, it

was determined that the Group financial, risk and personal

performance underpins were met and that these awards

will therefore vest in full. In respect of the 2021 SPP award,

a two-year holding period will apply until September 2026.

The value of these awards to Executive Directors is included

in the single figure table on page 96.

Following shareholder approval of our new Policy, we granted

our first Performance Share Plan (‘PSP’) awards to our Executive

Directors in December 2023. These awards were subject to

satisfactory personal performance in the period prior to grant

DIRECTORS’

REMUNERATIONREPORT

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

ANNUAL STATEMENT BY THE CHAIR OF THE REMUNERATION COMMITTEE

CONTINUED

and will vest based on performance over the three-year period

to 30th June 2026.

Full details on how variable pay awards have been determined

for the 2024 performance year as well as grants made during

the year are set out in this Annual Report on Remuneration.

Executive Director changes

We welcomed Dan Olley as Chief Executive Officer on

7th August 2023. As outlined last year, his remuneration

package was set in line with our new Policy approved by our

shareholders at the December 2023 AGM and is detailed

within this Annual Report on Remuneration. In order to secure

his appointment, Dan Olley also received a buy-out in lieu of

forfeited annual bonus and long-term incentive plan awards

from his previous employers. In making the buy-out, the

Committee looked to maintain consistency with the awards

forfeited and replacement awards are no more generous than

these. Further details on his buy-out is set out on page 101.

Chris Hill stepped down as CEO on 7th August 2023 and I’d

like to thank him for his contribution to the business during his

tenure. Chris Hill received his salary and contractual benefits

until the end of his notice period on 17th October 2023, but

received no bonus in respect of the 2024 performance year.

Further details on Chris’ remuneration are included on page 96

and 103.

Wider workforce

Our approach to reward is key in how we unleash the potential

of our people and drive a high performance and inclusive culture.

During the year, we refreshed our People Strategy enabling us

to reset our foundations and drive performance. This will be

underpinned by our Performance and Reward Philosophy which

helps guide all decisions related to colleague performance

and reward.

The way our Performance and Reward Philosophy supports

the broader strategy will be a key focus over 2025, starting with

the alignment of colleague Objectives and Key Results (‘OKRs’)

to our five strategic priorities. We believe that performance and

reward should be driven by both HL and colleague performance.

We will also ensure that behaviours aligned to our values are a

core part of how we assess personal performance, and overall

reward outcomes.

The colleague voice plays a key role in our decision making

process, and with a period of significant change regular

communication and engagement with our colleagues has been

essential. We introduced our new CEO through a comprehensive

communications campaign, including running listening sessions

for colleagues to sign up and share their feedback directly.

We have continued to run these sessions, so Dan hears from

a different group of colleagues in person every month.

We have also continued to engage and invest in our Colleague

Forum. In addition to providing an opportunity to consult with

colleagues on executive and wider workforce pay approach, it

provides a two-way feedback channel on our strategic priorities

and a route for colleagues to raise hot topics that are relevant

across HL. Further details of the activities in FY24 can be found

at page 42.

Gender pay and diversity

We remain committed to Inclusion and Diversity and believe that

building a more representative workforce and inclusive culture

will help us deliver the best outcomes for our clients. Further

details on our approach to Inclusion and Diversity can be found

on page 38.

Our ongoing commitment to initiatives such as the Women in

Finance Charter, FTSE Women Leaders, the Parker Review

and the Race at Work Charter help ensure we are transparent

and accountable in our approach and, from a remuneration

perspective, our reward framework now includes stretching

targets aligned to our aspiration for increasing the representation

of senior women and colleagues from ethnic minority groups.

Analysis of our 2023 Gender Pay Gap (GPG) also gives insight

into where we are making progress and where we need to take

action. This year our mean and median GPG have widened,

with the mean moving from 7.8% in 2022 to 9.3% in 2023 and

median moving from 13.7% to 19.1%. This change is primarily due

to high levels of recruitment, predominantly of men, into roles

commanding a market premium. Whilst overall representation

of women in senior roles has improved, there is a greater

proportion of men in roles commanding higher salaries as

they are larger or command a greater market premium.

We produced our second Ethnicity Pay Gap (EPG) report this

year, which we voluntarily publish as part of our commitment

to increasing ethnic minority representation, as recommended

by the Race at Work Charter. For the first time we have chosen

to disaggregate the data to get richer insight into the barriers

faced by different ethnic groups. Our 2023 report, which shares

data from 5 April 2023, showed that our mean and median EPG

has narrowed since the previous year, with the mean moving

from 19.6% to 12.2% and the median from 21.2% to 20.3%.

Disaggregated data showed that we have the biggest pay

disparity between White and Black colleagues.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

ANNUAL STATEMENT BY THE CHAIR OF THE REMUNERATION COMMITTEE

CONTINUED

This GPG and EPG analysis illustrates that there is still work

to do in terms of narrowing the pay gap, and making progress

requires long-term commitment and the focus on support of the

whole system to drive change. Going forward, we are focusing

on the three areas that we feel will deliver the biggest impact

– recruitment, progression and taking a functional approach.

Please see pages 40 to 41 for further details.

Implementation of Policy in FY25

Having applied our new Policy over FY24, the Committee is

confident it remains fit for purpose and aligned to the long-term

strategic ambitions of HL and the creation of shareholder value.

Therefore, no material changes are proposed for FY25.

The Executive Directors’ base salaries were reviewed in June

2024. Notwithstanding his strong performance in the year, Dan

Olley requested that his salary remain unchanged for FY25

recognising that he had only been in role for less than a year.

For Amy Stirling, a salary increase of 3.5% is proposed. This

is in line with the salary increase for other members of the

senior leadership team, but below the salary increase for the

wider workforce at 3.7%. This is the first salary increase Amy

has received since her appointment as CFO in February 2022

having requested not to take an increase last year.

Variable pay arrangements will continue to operate in line with

the Policy and performance measures remain largely unchanged

compared to prior year. For the annual bonus, however, asset

retention will replace the previous client retention metric.

We have also evolved our approach to measuring ESG for the

purposes of the PSP and now include quantitative emissions

reduction targets.

Contents of this report and closing remarks

On the following pages we set out:

բ A summary of Executive Directors’ Remuneration for the year.

բ A summary of the Policy which was approved last year; and

բ The Annual Report on Remuneration.

The Directors’ Remuneration Report will be submitted to

shareholders at the 2024 AGM, and I hope I can rely on your

continued support. I thank you, once again, for your time in

considering our approach to executive remuneration.

Moni Mannings

Chair of the Remuneration Committee

14 August 2024

4 1.9%

Bonus achieved

as % maximum

of opportunity

4 1.9%

Bonus achieved

as % maximum

of opportunity

CEO

CEO – Dan Olley

Total Remuneration Outcomes

(£’000)

Fixed Pay Annual Bonus Replacement Awards

2024 £3,784

£734 £900 £2,150 Total

CFO

CFO – Amy Stirling

Total Remuneration Outcomes

(£’000)

Fixed Pay Annual Bonus

2024 £1,214

£585 £629 Total

2023 £1,501

£594 £907 Total

Shareholding Requirement

300%

152%

Current Shareholding

Share Ownership as a % of Salary

(as at 30.06.2023)

Shareholding Requirement 300%

125%Current Shareholding

Share Ownership as a % of Salary

(as at 30.06.2023)

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

SUMMARY OF EXECUTIVE DIRECTORS’ REMUNERATION FOR THE YEAR

Remuneration outcomes for 2024 at a glance

FY2024 Performance Assessment

Measure Max Achievement

Financial/

Growth

(60%)

Net New Business 15.0% 4.3%

Underlying Cost 17.5% 13.5%

Profit Before Tax

(Statutory)

17.5% 17.5%

Client Retention 10.0% 4.2%

Non-

financial

(20%)

ESG – Colleague

engagement

5.0% 0.0%

ESG – Risk and Controls 5.0% 2.5%

Client Service NPS 10.0% 0.0%

OVERALL OUTCOME 80.0% 41.9%

FY2024 Performance Assessment

Measure Max Achievement

Financial/

Growth

(60%)

Net New Business 15.0% 4.3%

Underlying Cost 17.5% 13.5%

Profit Before Tax

(Statutory)

17.5% 17.5%

Client Retention 10.0% 4.2%

Non-

financial

(20%)

ESG – Colleague

engagement

5.0% 0.0%

ESG – Risk and Controls 5.0% 2.5%

Client Service NPS 10.0% 0.0%

OVERALL OUTCOME 80.0% 41.9%

Guideline of three times salary.

Current shareholding details are

set out on page 102

Guideline of three times salary.

Current shareholding details are

set out on page 102

19.4%

Fixed

48.2%

Fixed

80.6%

Variable

51.8%

Variable

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

DIRECTORS’ REMUNERATION POLICY (SUMMARY)

The Directors’ Remuneration Policy was subject to a binding

vote and approved by shareholders at our 2023 AGM held on

8 December 2023. The tables below summarise the elements

of the remuneration package for Directors and will apply until

shareholders next consider and vote on a subsequent policy

(intended to be three years from the date of approval).

The Directors’ Remuneration Policy is designed to ensure

that remuneration supports the Group’s strategic objectives,

is appropriately positioned against the external market, and

provides fair rewards that will attract, retain and motivate

individuals of the calibre required to run a group of the scale

and complexity of Hargreaves Lansdown.

Executive Directors

Element, purpose and link to strategy Operation and performance measures Maximum opportunity

Base salary

Reflects the individual’s

responsibilities, experience

and contribution.

Supports the recruitment and

retention of the calibre of individuals

required to lead the Company.

Base salaries are normally reviewed annually, with any increase usually effective from 1 July.

Base salaries are set taking into account a range of factors including external remuneration levels

and remuneration levels within the Group, as well as an individual’s responsibilities, experience

and contribution.

Base salary will ordinarily increase by no more than the average of relevant employee increases.

Any increase beyond this would only be made in exceptional circumstances, which would be explained

by the Remuneration Committee.

Circumstances in which the Committee may award increases outside this range may include:

բ A change in the scope and/or size of Executive Director’s role and/or responsibilities;

բ Performance and/or development in role of the Executive Director; and

բ A material change in the Group’s size, composition and/or complexity.

No absolute maximum increase. However,

the Remuneration Committee will consider the

operational principles as set out in this table.

Benefits

An ‘across the board’ benefits

package is available both to

employees and Executive

Directors alike.

Supports the recruitment and

retention of the calibre of individuals

required to lead the Company

The Committee’s policy is to provide Executive Directors with competitive levels of benefits, taking into

consideration the benefits provided to all eligible employees and the external market.

Where costs are necessarily incurred in the performance of duties on behalf of the Group, those costs will

be reimbursed in full, for example, travel, accommodation, subsistence, relocation, and any tax and social

costs arising thereon.

Benefits include (but are not limited to) life insurance, income protection, private medical cover, health

screening, discounted platform fees and participation in all employee share schemes such as Share

Incentive Plan and Save As You Earn scheme.

While no absolute maximum level of benefits

has been set, the level of benefits provided

is determined taking into account individual

circumstances, overall costs to the business

and market practice.

The full Directors’ Remuneration Policy can be found

on pages 89 to 99 of the 2023 Report and Financial

Statements, which is available to view on our website

at www.hl.co.uk/investor-relations.

The policy is divided into separate sections for Executive

and Non-Executive Directors.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

DIRECTORS’ REMUNERATION POLICY (SUMMARY)

CONTINUED

Element, purpose and link to strategy Operation and performance measures Maximum opportunity

Pension

Provides adequate pension saving

arrangements for Directors and

employees.

Supports the recruitment and

retention of the calibre of individuals

required to lead the Company.

Pension provision is provided in line with the pension provision available for all employees.

Any changes made to the employee arrangements will normally be carried across to the Directors.

The Committee may amend the form of any Director’s pension arrangements in response to changing

pension legislation or similar developments, so long as any amendment does not increase the cost to the

Company of a Director’s pension provision by any greater percentage than the increase to the provision for

all other employees.

The Company will contribute, on the same basis as the pension provision available to all employees,

to a savings vehicle where a Director has reached the Lifetime Allowance, would exceed any pension

contribution limits in any year, or has elected to protect their Lifetime Allowance.

Alternatively, if the Director does not wish to contribute to a savings vehicle, a cash allowance will be paid.

All employees and Directors may waive an element of their annual performance bonus in return for

a corresponding employer’s contribution into their pension.

The Group provides a matched employer

contribution of 5% of base salary.

Where employees make additional contributions

of over 5% of salary, these will be double

matched by the Company, up to a maximum

of 11% of salary.

The maximum contribution available to the

Directors is 11% of salary, in line with the wider

workforce rate. The maximum cash alternative

is 5%.

Any contribution paid as a result of waiver of the

cash element of an Annual Performance Bonus

will not be counted towards these maxima and

will not attract matched funding.

Annual performance bonus

Rewards achievement of the Group’s

business plan, key performance

indicators and the personal

contribution of Directors.

Aligns the interests of Directors

with those of shareholders.

The level of annual performance bonus payable is linked to key financial and non-financial metrics as well

as corporate and individual performance against objectives.

The on-target award level for Directors is 50% of the maximum opportunity. For each performance element

of the bonus, 25% of the maximum opportunity will be paid for the attainment of threshold performance.

Performance will usually be assessed against a combination of financial/growth, non-financial and

individual performance measures with at least a 50% weighting allocated to financial/growth measures,

and no more than 20% allocated to individual performance. In assessing the overall performance outcome,

the Remuneration Committee may use its judgement and retains flexibility to apply discretion to the

formulaic outcome as set out on page 95 of the 2023 Report and Financial Statements.

Awards will be delivered in an appropriate combination of cash and shares in line with prevailing regulatory

requirements, with a minimum of 50% of total variable remuneration delivered over HL plc shares. The

combination of cash and shares will be determined each year by the Committee. Awards may be subject

to any further post-vesting/holding period applicable in line with regulatory requirements.

Deferral will be determined by reference to the proportion of overall variable pay required to be deferred

under regulatory requirements, currently the Investment Firm Prudential Regime (IFPR), typically 60%.

In accordance with regulation, deferral calculations will normally be based on grant values. The deferral

period will usually be three years followed by a post vesting holding period as required under regulation.

Subject to regulatory requirements, dividend alternatives will normally accrue on deferred awards up to the

vesting date.

Awards are subject to malus during the vesting period and clawback until the later of three years from

the date of award or the end of any post vesting holding period. Further details of malus and clawback

provisions are set out on page 95 of the 2023 Report and Financial Statements.

The maximum bonus opportunity for Directors

under the policy is as follows:

բ CEO: 250% of base salary in respect of the

relevant financial year; and

բ CFO: 220% of base salary in respect of the

relevant financial year.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

DIRECTORS’ REMUNERATION POLICY (SUMMARY)

CONTINUED

Element, purpose and link to strategy Operation and performance measures Maximum opportunity

Performance Share Plan

Rewards achievement of the Group’s

business plan and key performance

indicators over the long-term in

line with shareholder and wider

stakeholder experience.

Awards over HL plc shares will vest subject to the achievement of performance measures over a

performance period, which is normally three years from the beginning of the financial year in which

the award is granted.

Awards will normally be granted subject to satisfactory personal performance of each Director prior

to grant.

Performance measures attached to PSP awards may be a mix of financial measures and other long-

term strategic measures. Financial measures will comprise at least 75% of the performance measures.

Weightings and targets will be set in advance of each grant by the Committee and disclosed prospectively,

and performance against the targets set will be disclosed retrospectively.

Vesting will be on a straight-line basis between threshold and maximum performance levels, with no

more than 25% vesting at threshold performance. No award will vest for performance below threshold

level. The Committee may use its judgement and retains flexibility to apply discretion to the formulaic

outcome as set out on page 95 of the 2023 Report and Financial Statements.

Vested awards (net of applicable taxes and deductions) will normally be subject to a two-year holding period.

Subject to regulatory requirements, dividend alternatives will normally accrue on unvested awards up to

the vesting date.

Awards are subject to a formal malus mechanism until vesting. Awards are subject to clawback until the

end of any post vesting holding period. Further details of malus and clawback provisions are set out on

page 95 of the 2023 Report and Financial Statements.

Awards may also be granted in conjunction with a tax-advantaged Company Share Ownership Plan

(“CSOP”) up to the HMRC limits as an “Approved PSP Award” with the vesting of any Approved PSP Award

scaled back to take account of any gain made on exercise of the associated CSOP option. An Approved

PSP Award may enable the Director and the Company to benefit from tax advantaged treatment on part

of their PSP award without increasing the pre-tax value delivered to the Director or cost to the Company.

The maximum PSP award each year under

the Policy will be 150% for the CEO and 130%

for the CFO.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

DIRECTORS’ REMUNERATION POLICY (SUMMARY)

CONTINUED

Element, purpose and link to strategy Operation and performance measures Maximum opportunity

Sustained Performance Plan

Aligns the interests of Directors

with those of shareholders and

rewards long-term stewardship

of the Company.

Annual awards of over HL plc shares will vest subject to the achievement of underpinning performance

conditions over a performance period, which is normally three years from the beginning of the financial

year in which the award is granted.

Awards will normally be granted subject to satisfactory personal performance of each Director prior

to grant.

The underpinning performance conditions applicable for each award will be set in advance of each

grant by the Committee and disclosed prospectively, and performance against the targets set will be

disclosed retrospectively.

Vesting will be determined by the Committee and, in doing so, the Committee retains flexibility to apply

discretion to the formulaic outcome as set out on page 95 of the 2023 Report and Financial Statements.

Vested shares (net of applicable taxes and deductions) will then normally be subject to a two-year

holding period.

Subject to regulatory requirements, dividend alternatives will normally accrue on unvested awards up

to the vesting date.

Awards are subject to a formal malus mechanism until vesting. Awards are subject to clawback until the

end of any post vesting holding period. Further details of malus and clawback provisions are set out on

page 95 of the 2023 Report and Financial Statements.

The maximum award each year under the Policy

is 50% of base salary

Shareholding guideline

Aligns the interests of management

and shareholders to the success

of the Group

All Executive Directors are expected to hold shares in the Company with a specific market value expressed

as a percentage of their salary, within a reasonable time frame (typically within six performance years

of appointment).

The current shareholding guideline for Directors is a minimum value of three times base salary.

Vested and unvested (net of tax) awards under the annual performance bonus are included in the

calculation of a Director’s shareholding for this purpose.

Awards no longer subject to performance conditions (net of tax) under the Performance Share Plan

and Sustained Performance Plan are also included.

Upon ceasing to be employed, Directors will be required to retain a shareholding equal to their shareholding

guideline, or the number of shares actually held on departure, whichever is the lower, for twenty-four

months. This will not include shares purchased or awarded to Directors upon recruitment in respect of

any buyout award, nor will it include shares vested prior to the 2020 AGM.

Not applicable.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

DIRECTORS’ REMUNERATION POLICY (SUMMARY)

CONTINUED

Approach to recruitment remuneration

The Committee will set a remuneration package for new

Executive Directors determining the individual elements of the

package and the total package taking account of the skills and

experience of the candidate, the market rate, and remuneration

levels across the Group, respecting maximum levels for variable

pay referred to in the appropriate policy table.

Separately, additional cash and/or share based awards on

a one-off basis may be made upon recruitment as deemed

appropriate by the Committee if the circumstances require,

taking into account pay or benefits forfeited by a Director on

leaving a previous employer. The Committee has the discretion

to make such awards under its share plans and in excess of

the salary limits contained therein, or as permitted under Rule

9.4.2 of the Listing Rules (which allows companies to make

one off share awards in exceptional circumstances, including

recruitment). Such awards will, as far as possible, maintain

consistency with the awards forfeited in terms of type of reward

(shares or cash), expected value, time horizons and whether

they were subject to performance criteria. Other payments

may be made for relocation expenses, recruitment from abroad,

legal costs, tax equalisation, other costs or benefits forfeited

by an individual being recruited.

Service agreements and loss of office payments

All Executive Directors have a service contract which reflects

the approved policy in force at the time of appointment.

The service contracts for all Directors in post are available for

viewing (on the giving of reasonable notice) at our registered

office during normal business hours and both prior to, and at,

the Annual General Meeting. Under the terms of our Articles

of Association, all Directors are subject to annual re-election

by shareholders.

Service contracts do not have a specific duration but may

be terminated with 12 months’ notice from the Company or

the Executive Director.

The service agreements contain provisions for payment in lieu

of notice in respect of base salary and pension contributions.

The Committee has a policy framework for payments for loss

of office by an Executive Director, both in relation to the service

contract and incentive pay, which is summarised below. The

approach of the Company on any termination is to consider all

relevant circumstances, including the recent performance of the

Executive Director, and to act in accordance with any relevant

rules or contractual provisions.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

DIRECTORS’ REMUNERATION POLICY (SUMMARY)

CONTINUED

Nature of termination

Element

By Executive Director or

Company giving notice

By Company

summarily

Good leaver: leaving by reason of death, ill health, injury or disability, redundancy, retirement with the agreement of the

Committee, the sale of employing business or company, or other circumstances at the discretion of the Committee

Base salary,

pension and

benefits

Paid until employment ceases Paid until employment ceases. Paid until employment ceases or in respect of notice period (subject to mitigation) depending on the

reason for cessation. Discretion for Company to pay salary, pension and benefits in a single payment

or in monthly instalments.

Annual bonus No entitlement to annual bonus for

that financial year.

No entitlement to annual bonus for

that financial year.

Cessation during the financial year or after the financial year end, but before payment date, may

result in bonus being payable subject to performance (pro-rated for the proportion of the financial

year worked).

Deferred bonus

award

Unvested deferred bonus awards

lapse when employment ceases.

Unvested deferred bonus awards

lapse when employment ceases.

Vested awards will not lapse and unvested options and conditional shares awards (where shares

have yet to be delivered) may vest and be exercised in accordance with normal terms. Committee

has discretion to determine whether awards vest when employment ceases.

Performance Share

Plan (PSP) awards

Unvested PSP awards lapse when

employment ceases.

Vested PSP awards will normally

continue to be released on the

original terms.

Unvested PSP awards lapse when

employment ceases.

Vested PSP awards subject to

a holding period will lapse upon

summary dismissal.

Unvested awards will normally vest in accordance with the original terms, on a pro rata basis for the

period of time served as a proportion of the initial performance period and subject to achievement

of the performance measures. The Remuneration Committee has discretion to waive the pro-ration

of PSP awards, should they deem this to be appropriate.

Vested awards that remain subject to a holding period will normally continue to be released on the

original terms.

The Remuneration Committee has discretion to accelerate the vesting and release of awards for good

leavers in exceptional circumstances (e.g. death).

Sustained

Performance Plan

(SPP) awards

Unvested SPP awards lapse when

employment ceases.

Vested SPP awards will normally

continue to be released on the

original terms.

Unvested SPP awards lapse when

employment ceases.

Vested SPP awards subject to

a holding period will lapse upon

summary dismissal.

Unvested awards will normally vest in accordance with the original terms, on a pro rata basis for the

period of time served as a proportion of the initial performance period, subject to achievement of the

performance underpins. The Remuneration Committee has discretion to waive the pro-ration of SPP

awards, should they deem this to be appropriate.

Vested awards that remain subject to a holding period will normally continue to be released on the

original terms.

The Remuneration Committee has discretion to accelerate the vesting and release of awards for good

leavers in exceptional circumstances (e.g. death).

Other payments None. None. In appropriate circumstances, disbursements such as legal costs, outplacement services, relocation

expenses and the cost of a settlement agreement.

Minimum

On-target

Maximum

+share price

appreciation

Annual Bonus Fixed pay

PSP

Share price appreciation

SPP

4,000 5,000

2,000

3,0000 1,000

32%

22%

19%

31%

43%

37%

23%

25%

22%

14%

10%

15%

100%

£605k

£1,916k

£2,779k

£3,268k

Amy Stirling – Remuneration opportunity for FY25

(£’000s)

Minimum

On-target

Maximum

+share price

appreciation

Annual Bonus Fixed pay

PSP

Share price appreciation

SPP

4,000 5,000

2,000

3,0000 1,000

29%

20%

17%

33%

44%

38%

25%

27%

23%

13%

15%

100%

£816k

£2,778k

£4,101k

£4,831k

Dan Olley – Remuneration opportunity for FY25

(£’000s)

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

DIRECTORS’ REMUNERATION POLICY (SUMMARY)

CONTINUED

Illustration of application of Remuneration Policy

The Committee discloses each year in the Group’s Report and Financial Statements a bar chart

that models the potential remuneration for each of the Executive Directors for the forthcoming

year using a range of assumptions. The chart shows the potential value of the current Executive

Directors’ remuneration for the forthcoming year for three scenarios; minimum, maximum and

mid-point scenario as follows:

բ The minimum amount represents the unconditional component of the remuneration package:

salary, pension and employee benefits;

բ The mid-point amount is the amount the Executive Director will receive if they achieve an

on-target bonus level (50% of maximum) and on-target Performance Share Plan vesting

(62.5% of maximum), and awards under the Sustained Performance Plan vest in full. It will

include both fixed and variable components of remuneration; and

բ The maximum level is the maximum amount of remuneration each Executive Director can be

awarded in the year. The maximum is subject to remuneration caps that have been established

for each component.

Within the scenario charts, the final scenario on the right-hand side sets out the impact on the PSP

and SPP awards of a 50% appreciation in the Company’s share price during the relevant period.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

Non-Executive Directors

Element, purpose and link to strategy Operation and performance measures

Base fee

Supports the attraction and

retention of high performing

individuals, considering both

the market value of the position

and the individual’s skills, experience

and performance.

Non-Executive Directors are paid an annual base fee with fees for additional roles (for example, Senior

Independent Director or Chair of a Board Committee and/or Chair or member of a subsidiary Board).

The Chair’s and Non-Executive Directors’ base fees are reviewed annually and any increases, if applicable,

are normally effective from 1 July.

The fee levels are set considering relevant factors, such as time commitment and market data for

comparable positions and taking account of the time commitment required for the role.

All Non-Executive Directors’ fees including those below are paid in cash monthly or such other frequency

as determined by the Board.

The Non-Executive Directors are not eligible for bonuses, pension or to participate in any Group employee

share plan.

Committee Chair fees

Recognises the additional time

commitment and responsibility

involved in chairing a Committee

of the Board.

Each Non-Executive Director receives an additional fee for each Committee for which they are Chair.

The Committee Chair fees reflect the additional time and responsibility in chairing a committee of the

Board, including time spent liaising with management and preparing for a committee of the Board.

Senior Independent Director

(SID) fee

Recognises the additional time

commitment and responsibility

involved in holding the SID role.

The SID receives an additional fee for their role.

The fee reflects the additional time and responsibility in fulfilling the role of Senior Independent Director.

Benefits and expenses

To appropriately reimburse the Chair

and Non-Executive Directors for

out-of-pocket expenses incurred in

the fulfilment of their responsibilities

and any tax and social costs arising.

Non-Executive Directors may be eligible to receive benefits such as travel and other reasonable expenses.

Where costs are necessarily incurred in the performance of duties on behalf of the Company, those costs

will be reimbursed in full, for example, travel, accommodation, subsistence, relocation, and any tax and

social costs arising.

Expenses may be claimed by the Chair and Non-Executive Directors in line with the Company’s

expenses policy.

Appropriate Director insurance and indemnity cover is provided by the Company.

Some Group services are provided at a reduced cost, on the same basis as for all other employees.

Where benefits are provided to Non-Executive Directors, they will be provided at a level considered to be

appropriate, taking into account individual circumstances.

DIRECTORS’ REMUNERATION POLICY (SUMMARY)

CONTINUED

In accordance with the Company’s Articles

of Association, the maximum aggregate

remuneration for the Non-Executive Directors

is currently £1,500,000 per annum. This limit

will be reviewed by the Board from time to time

to ensure that it remains appropriate. Non-

Executive Directors are appointed for an initial

term of three years, if the contract ceases

earlier, three months prior written notice

is required.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

ANNUAL REPORT ON REMUNERATION

This report has been prepared in accordance with the

provisions of the UK Corporate Governance Code. It also meets

the requirements of the UK Listing Authority’s Listing Rules. The

Remuneration Committee confirms throughout the financial year

that the Company has complied with these governance rules

and best practice provisions.

Role of the Remuneration Committee

The Board remains ultimately accountable for executive

remuneration but has delegated this responsibility to the

Remuneration Committee.

The Remuneration Committee is therefore responsible for

determining the Remuneration Policy for the remuneration of

the Executive Directors of the Company and of the subsidiary

companies, the Chair, other members of executive management

and all other employees who are deemed to be Material

Risk Takers. The Committee shall also review workforce

remuneration and related policies, and the alignment of

incentives and rewards with the Group’s culture and defined

behaviours, taking these into account when setting the

policy for plc Executive Director remuneration. The policy is

determined with due regard to the interests of the Company,

the shareholders and the Group, with the objective of being able

to attract, retain and motivate executive management of the

quality required to run the Group successfully without paying

more than is necessary.

The performance measurement of the Executive Directors and

key members of senior management and the determination of

their annual remuneration packages is also undertaken by the

Committee. For individuals below the Executive Leadership

Team remuneration structures and outcomes are reviewed at

the Executive Committee which reports and refers decisions to

the Committee for final approval where relevant.

The Committee also ensures that the remuneration relationship

between the Executive Directors and senior employees of the

Group is appropriate and that the Remuneration Policy complies

with the relevant FCA Remuneration Codes. Any exceptional

remuneration arrangements for senior employees are approved

by or advised to the Committee.

UK Corporate Governance Code

When considering the policy, the Committee was mindful of the

UK Corporate Governance Code and believes that the executive

remuneration framework addresses the following principles:

Clarity The Committee remains committed to a clear and transparent remuneration framework that

promotes effective engagement with our shareholders and the wider workforce. Further alignment

with our shareholder interests is driven by the increased focus on long-term time horizons and

Executive Director shareholding requirements.

Simplicity The remuneration arrangements for Executive Directors are well understood by both participants

and shareholders. The structure consists of fixed pay, annual bonus (including deferral), SPP and

PSP. The approach to annual bonus deferral has been simplified, with a portion being deferred

where the regulatory requirement is not satisfied through our long-term incentive awards or

where the HL internal deferral framework would result in a greater level of annual bonus deferral.

Risk The remuneration framework has been designed to mitigate risk where appropriate. The Committee

review adherence to the Group’s risk parameter as part of its determination of variable pay outcomes

and malus and clawback provisions apply to the annual bonus, SPP and PSP award. Under the policy,

the PSP and SPP awards will be subject to a two-year post-vesting holding period. Where a portion

of the annual bonus is to be deferred, an additional post-vesting holding period will apply as required

under the regulations.

Predictability The potential value of the Executive Directors’ remuneration packages at threshold, target and

maximum scenarios (including with 50% share price appreciation) have been provided on page 91.

In addition, the policy states the maximum annual bonus, PSP and SPP opportunity as a percentage

of salary. In line with best practice, the specific targets are also communicated to participants and

disclosed to shareholders.

Proportionality The Committee strongly believes that poor performance should not be rewarded. The annual bonus

and PSP awards require performance against stretching targets to ensure that there is a clear link

between the performance of the Group and awards made to Executive Directors. The SPP award is

subject to robust underpin measures. These underpins reflect on both financial and non-financial

performance and are aligned to the Group’s strategic priorities.

Alignment to culture The remuneration framework has been designed to support both the Group’s culture, purpose and

values. The performance measures and underpins of the variable pay awards have been chosen to

drive desired behaviours and are aligned to the strategy of the business.

11%

Regulatory

& Governance

(including gender pay)

Other

including

Meeting

Administration

Business

Performance

& Risk

Assessment

Review

25%

Wider

Workforce

Policy

52%

Executive

Remuneration

& Policy

Rem report

Overview of the Committee’s activities

in the year to 30 June 2024

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

ANNUAL REPORT ON REMUNERATION

CONTINUED

Meetings during the year

There were five scheduled meetings during the year as set

out on page 67 and occasional ad hoc meetings where required.

Meetings were chaired by Moni Mannings; other members

were John Troiano for the full year and Deanna Oppenheimer,

Roger Perkin and Michael Morley for part of the year.

None of the Committee has any personal financial interest

(other than as shareholders), conflicts of interests arising

from cross-directorships or day-to-day involvement in running

the business.

During the year the Committee has undertaken activities as

set out below and, in doing so, confirm that there have been no

deviations from the procedure for implementation of the policy

in this financial year:

• Executive Remuneration & Policy

Reviewing and implementing the Directors’ Remuneration Policy

and considering our remuneration approach to apply to FY25

and beyond.

Consideration of the Directors’ Remuneration Report in the

2023 Report and Financial Statements, and stakeholder

feedback received.

Assessing progress towards achieving Director

shareholding requirements.

• Wider Workforce Policy

Reviewing the remuneration policy for the wider workforce

and approving new policies in accordance with regulatory

and governance requirements.

Receiving reports and overseeing decisions and

recommendations made by the Executive Committee.

Reviewing colleague feedback via the Colleague Forum,

oversight of which transitioned to the Nomination & Governance

Committee during the year.

Reviewing the gender and the ethnicity pay gap reporting

covering the snapshot date of 5 April 2023, and noting

management’s action plan to address the gender pay gap.

• Business Performance & Risk Assessment

Reviewing our approach to business and individual performance

measures, targets and weightings, with a particular focus on

ensuring they evidence delivery against our strategic priorities.

Considering a formal assessment of risk performance in relation

to remuneration.

Reviewing and agreeing performance bonuses for the Executive

Directors and other Material Risk Takers (MRTs).

Reviewing and approving Executive Directors’ objectives and

performance measures.

• Regulatory & Governance

Receiving and noting regulatory and governance updates.

Reviewing and approving the required Remuneration

Code disclosures.

In addition, the Committee dealt with administrative matters as

required, including approving minutes, reviewing matters arising,

considering forward agenda items and determining matters for

escalation to the Board or other Legal Entities as appropriate.

The detailed responsibilities of the Committee are set out in its

terms of reference, which are available on the Group’s website

at www.hl.co.uk/about-us/board-of-directors.

Advice to the Committee

During the year, the Committee has been supported by the

Company Secretary, Chief People Officer, Head of Performance

and Reward, and Chief Executive Officer who are invited to

attend Committee meetings to provide further background

information and context to assist the Committee in its duties.

The Group Chief Risk Officer also provides a formal risk

assessment to the Committee at mid-year and at the end of

the financial year which assesses performance of the business

against risk appetite, key risk indicators, and includes an

assessment of risk events and conduct breaches to ensure

second line input into proposed remuneration outcomes.

The Chief Financial Officer provides insight and updates

regarding business performance and business performance

metrics. No Director was involved in decisions regarding

the determination of their own remuneration.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

ANNUAL REPORT ON REMUNERATION

CONTINUED

Deloitte LLP, a signatory to the Remuneration Consultants

Group’s Code of Conduct, were reappointed by the Committee

during 2021 following a review. They remain engaged for the

provision of independent remuneration advice, and throughout

the year the Committee has been advised by them. The

advisers review all committee papers and provide input on

matters directly to the Committee as well as attend committee

meetings. As such, the Remuneration Committee is satisfied

that the advice it has received was objective and independent.

The fees payable to Deloitte for this advice were based on

services provided against a scope of services approved by the

Committee and amounted to £70,443 plus VAT on a time and

material basis. Other services provided to Hargreaves Lansdown

by Deloitte LLP during the year consisted of risk advisory, tax,

financial advisory, consulting and internal audit services on

a co-sourced basis.

Consideration of employment conditions elsewhere

in the Company

The Committee considered the Company’s remuneration

principles which apply across the Group when determining

the Executive Director Policy, which was approved by our

shareholders at the December 2023 AGM. In particular, the

approach taken to salary increases and the structure of the

annual bonus aligns closely to the approach generally taken

across the wider workforce, and the same PSP and SPP

structure is used for all participants within the plan.

For FY25, the average annual salary increase for all colleagues

was 3.7%, with salary increases for senior leadership below this

at 3.5%. Except as disclosed, there are no pay increases for

members of the Executive Leadership team for FY25.

Over the year we have continued to practice our ‘Always

Listening’ approach to enable us to better consider the voice

of our colleagues when making decisions.

The Committee is regularly updated on the pay and employment

conditions for the wider workforce through reports from the

Executive Committee and Colleague Forum.

The Committee also considers salary increases, remuneration

arrangements and employment conditions across the wider

employee population when considering Directors’ pay

and awards.

Consideration of shareholder views

The Committee recognises that Director remuneration is an

area of particular interest to our shareholders and in setting and

considering changes to remuneration, it is critical that we listen

to, and take account of, their views.

The Committee considers shareholder feedback received

in relation to the AGM each year at its first meeting following

the AGM. This feedback, as well as any additional feedback

received during any other meetings with shareholders, is

then considered as part of the Group’s annual review of the

implementation of the Remuneration Policy. We also regularly

engage with our largest shareholders to ensure we understand

the range of views which exist on remuneration issues.

When any material changes are made to the Policy, the

Committee will discuss these in advance with our major

shareholders wherever practical. The Committee will also

consult with professional advisers to ensure we consider

regulatory requirements and current market and industry

practices, where appropriate.

Consultation with employees

Over the course of the year, and following the introduction

of our new CEO, we’ve updated our approach to engaging

with and listening to colleagues, running listening sessions

for colleagues to sign up to and share their feedback directly.

In addition, six-weekly Colleague Updates have been introduced

where the CEO and other senior members provide updates

on strategy and answer colleague questions. Further details

on our approach to colleague engagement and listening are

set out on page 42.

We have continued to engage and invest in our Colleague

Forum, which was first set up in January 2019. In addition

to providing an opportunity to consult with colleagues on

executive and wider workforce pay approach, it provides a

two-way feedback channel on our Transformation and strategic

priorities and a route for colleagues to raise hot topics that are

relevant across the Group. Any topics not on the Forum agenda

are raised through other channels so nothing is missed making

sure all colleagues’ voices are heard.

The Forum has provided insight and feedback on topics ranging

from our purpose and values, through to increasing usage of our

learning platform.

Colleague feedback is incredibly important to us and helps us

to do the right thing by making more informed decisions and

improving the colleague experience at HL. The Forum allows us

to co-create people change, with colleagues and clients at the

heart of what we do.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

Executive Director Remuneration for 2024

Remuneration payable for the 2024 financial year (1 July 2023 to 30 June 2024)

The remuneration policy operated as intended in the financial year with remuneration received by Executive Directors in relation to performance in 2024 set out below:

Single Total Figure Table (audited)

Name of Director Year

Gross

Basic Salary

£’000

Taxable

benefits

£’000

Annual bonus

SPP

£’000

Pension

contribution

£’000

Replacement

awards

£’000

Total

£’000

Total Fixed

Remuneration

£’000

Total Variable

Remuneration

£’000

Upfront

cash

£’000

Deferred

£’000

Dan Olley

2024 661 6 560 340 0 67 2,150 3,784 734 3,050

Amy Stirling 2024 525 2 397 232 0 58 – 1,214 585 629

2023 525 1 468 439 0 68

– 1,501 594 907

Chris Hill

2024 72 0 0 0 357 8 – 437 80 357

2023 730 1 576 865 329 80 – 2,581 812 1,770

Notes

1. This includes Medical, and for 2024 the SAYE discount value over the term of the savings contract in respect of Dan Olley is included.

2. The outcomes of the 2019 (5-year performance period) and 2021 (3-year performance period) SPP awards, whereby the performance period ends 30 June 2024, have been assessed by the Committee. The Committee confirmed that both the 2019 and 2021 awards will vest in

full with no discretion applied (being 15,141 and 17,352 shares for Chris Hill respectively) following assessment of the underpinning performance conditions. In respect of the 2021 awards, a two-year holding period will apply until September 2026. The value of both the 2019 SPP

and 2021 SPP awards has been calculated using the three-month average share price up to 30 June 2024 of £9.20, together with the value of the dividends that would have been received during the 5-year performance period for the 2019 awards and the 3-year performance

period for the 2021 awards. The gross value of these dividends is £58,130 (split £35,051 for the 2019 award and £23,078 for the 2021 award) for Chris Hill. As the 2019 SPP award was granted using a share price of £20.21 and the 2021 SPP award granted using a share price of

£14.29, none of the SPP value is attributable to share price appreciation. See pages 99 to 100 for further details of the assessment of the underpinning performance conditions. The SPP figure for 2023 for Chris Hill has been re-stated using a share price of £8.15 being the share

price on the date of vesting. None of this value is attributable to share price appreciation.

3. Dan Olley joined HL as a NED on 1 June 2019 and became Chief Executive with effect from 7 August 2023. The figures shown are for the part of the year during which Dan became CEO and reflect a pro-rata bonus for the period 7 August 2023 to 30 June 2024. The value shown

in the Replacement Awards column represents the value of the buy-out awards granted on 20 September 2023. Further details are set out on page 101

4. Includes contribution for FY21/22 that was applied in FY22/23. Contributions for FY22/23 do not exceed 11% in line with policy.

5. Chris Hill stepped down from the Board on 7 August 2023 and left the Company on 17 October 2023. The values shown for FY24 are for the part of the year during which Chris served on the Board as an Executive Director of the Company. No bonus was paid to Chris for the

FY24 period.

Other than SAYE options (which are available to Executive Directors on the same basis as all employees and included in other cash benefits), and the awards made to Executive Directors on joining,

no share options without performance criteria have been granted to Executive Directors since 7 March 2012.

Where eligible, benefits in kind are available to Executive Directors on the same basis as other employees. For 2024, benefits include Life Insurance, Income Protection, Private Medical Insurance,

Save As You Earn (SAYE) scheme, reduced platform fees for holding assets on the Group’s investment platform, reduced dealing charges for self and connected persons and access to a range of

voluntary benefits such as Critical Illness cover.

No Executive Director has a prospective entitlement to a defined benefit pension by reference to their length of qualifying service.

ANNUAL REPORT ON REMUNERATION

CONTINUED

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

Assessment of annual performance for the 2024 financial year (1 July 2023 to 30 June 2024)

The value of any bonuses payable to Executive Directors was determined by the Committee based on:

բ An assessment of the performance of the Group against financial/growth and non-financial measures, including an assessment of risk performance and risk events;

բ Delivery of the strategic goals, including the personal contribution of each Executive Director towards these; and

բ An overlay that takes account of the conduct, behaviours and culture evidenced by each Executive Director in line with the Hargreaves Lansdown values and the extent to which they have

operated within the agreed risk parameters.

For each Executive Director, the Committee determined their overall bonus, taking all factors into account and using all relevant information, by reference to the following target and maximum levels,

as disclosed in the 2023 Report and Financial Statements:

Threshold bonus

opportunity (% of

base salary)

On-target bonus

opportunity (% of

base salary)

Maximum bonus

opportunity (% of

base salary)

Dan Olley

62.5% 125% 250%

Amy Stirling 55% 110% 220%

Note:

1. For FY24 Dan Olley will receive a pro-rata bonus for the period 7 August 2023 to 30 June 2024

Group performance has been considered in relation to the following financial and non-financial measures, as set out below:

Performance Range

Measure Weighting

Threshold

25%

Target

50%

Stretch

100% Actual Outcome

Weighted

Outcome

Financial/

Growth

(60%)

Net New Business 15.0% £4.1bn £4.8bn £5.5bn £4.2bn 28.6% 4.3%

Underlying Cost (audited) 17.5% £357m £345m £333m £338.5m 7 7.1% 13.5%

Profit Before Tax (Statutory) (audited) 17.5% £331.8m £352.4m £373m £396.3m 100.0% 17.5%

Client Retention 10.0% 91.0% 91.60% 92.20% 91.4% 41.7% 4.2%

Non-

financial

(20%)

ESG – Colleague engagement 5.0% 68% 70% 72% 62.0% 0.0% 0.0%

ESG – Risk and Controls 5.0% 25% 50% 100% 50% 50.0% 2.5%

Client Service NPS 10.0% 48% 51% 53% 42.4% 0.0% 0.0%

TOTAL 80.0% 41.9%

ANNUAL REPORT ON REMUNERATION

CONTINUED

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

ANNUAL REPORT ON REMUNERATION

CONTINUED

The Risk and controls measure is assessed through a Risk Maturity score, which was assessed to have been achieved at target. Material progress was made during the year, including continued focus

from first line teams and a more data-led approach through recording and reporting and embedding of the Group’s Risk Maturity Model.

The remaining 20% of the annual bonus is based on Strategic Delivery. Performance against key strategic goals during the financial year is as set out below:

Strategic Priority Overview Key achievements in the year

Delight clients, drive growth Continue to evolve our

value proposition to delight

our clients and drive

our growth.

Strong progress in FY24, demonstrated by a record platform AUA of £155.3 billion (2023: £134bn), and an additional 78,000 net

new clients over the year (2023: 67,000).

Active Savings reached a record of £10.6 billion in AUA (2023: £7.8bn) and 300,000 total clients (2023: 175,000), underpinned

by new product developments and attractive rates from partner banks.

Extended retirement proposition with a new lifestyle arrangement launched for SIPP clients and expanded range of

Ready-Made solutions.

Continued evolution of digital to provide a more seamless client journey and improve client experience.

Save to invest Striving to be a fitter and

leaner business, so we can

reinvest savings back into

the business.

Increased basic cost discipline with reviews of organisational spans and layers, 3rd party contracts, ways of working and the use

of contractors and 3rd party consultants where we have reduced the total number by 62%.

Simplification of the organisation through new ways of working and organisation structure to increase efficiency and drive delivery,

including through the standardisation, automation, and simplification of previously manual processes.

Increase execution pace Delivering for our clients

every day, improving

our proposition on an

ongoing basis

Successful delivery of key strategic programmes on time including regulatory initiatives, while ensuring a seamless client experience.

Restructured projects and teams to increase pace of delivery and evolved ways of working.

Increased focus on metrics and data visibility to support decision-making.

Right people, right roles Make HL a great place

to work. The right culture,

with the right people in the

right roles, focused on the

right priorities to deliver

the strategy.

Strengthening of the executive team with several key hires made in the year, including Chief Digital & Technology Officer,

Chief Strategy Officer, Chief Operating Officer and Director of Corporate Affairs.

Creation of new digital and technology leadership team, which is executing at pace.

Renewed People strategy with a focus on performance and the simplification of our purpose and values.

Creation of enhanced ESG risk framework.

In addition to the above achievements, the Committee also took into account the personal contribution of each Executive Director to Strategic Delivery.

During his first year as CEO, Dan has demonstrated exemplary leadership in driving forward HL’s strategy, with a clear focus on delivery and commitment to change and growth. His notable

achievements for FY24 include reaching a record platform AUA, as well as a material increase in net new clients over the year with demonstrated progress towards attracting younger clients. Dan

successfully renewed the structure of the executive team, and enabled a reset of client service levels through improvements in the digital offering and the empowering of colleagues through the

continued rollout of technology solutions. Continued progress was also made in strengthening operational resilience and risk management. Taking this into account, it has been determined that the

Strategic Delivery outcome for Dan will be 12.5% out of a maximum of 20%.

Amy demonstrated a strong performance in FY24. She continued to build strong and effective relationships with investors as well as strengthening the finance function. Good progress was also

made in the delivery of key projects and her increased rigour and business ownership was reflected in the delivery of financial plans and cost savings across the organisation. She has also led and

supported in the context of the proposal from the consortium to acquire the Company. Taking this into account, it has been determined that the Strategic Delivery outcome for Amy will be 12.5% out

of a maximum of 20%.

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

ANNUAL REPORT ON REMUNERATION

CONTINUED

Overall assessment and bonuses awarded for the financial year (1 July 2023 to

30 June 2024)

The Committee considered all of the above in making their bonus determination for Dan Olley

and Amy Stirling for the 2024 financial year.

In addition, it also considered the extent to which performance (both Group and individual)

has been achieved within the agreed risk parameters, based on an assessment from the Group

Chief Risk Officer, and the extent to which the bonus outcome reflects the overall performance

of the business.

The Committee concluded that the bonus outcomes for Dan Olley and Amy Stirling reflect Company

performance, effective management of costs, risks and governance, together with a strong focus on

the strategic transformation plans. The Committee has also considered the individual performance,

contribution and behaviours in line with Company values in determining bonuses.

The resulting bonuses determined by the Committee for the year ending 30 June 2024 are set

out below: (Audited)

Cash

£’000

Deferred

£’000

Total

£’000

% of

maximum

Dan Olley 2024 560 340 900 54%

Amy Stirling 2024 397 232 629 54%

No bonus was paid to Chris Hill for the FY24 period.

Notes

As well as the deferral approach in accordance with IFPR regulations, (whereby at least 60% of all variable pay (bonus, SPP and PSP)

must be deferred unless de minimis applies), HL operates an internal deferral framework, whereby for annual bonus awards over £75,000,

40% of the awards above £50,000 is deferred. The HL internal deferral framework would apply for any colleague including MRTs where

de minimis applies. Both approaches require deferral into nil-cost options over shares which vest in equal tranches over a period of three

years. Dividend alternatives will accrue on the deferred share element of bonuses up to the time of vesting and will be paid at exercise.

Individuals have a right to exercise deferred awards after their respective vesting/retention date for a period of one year.

For FY24, the portion of the annual bonus deferred was determined in accordance with the IFPR regulations whereby at least 60% of all

variable pay must be deferred. The SPP and PSP is included in total variable pay when calculating deferral for regulatory purposes. With

the SPP and PSP awards alone both Dan Olley and Amy Stirling met the required regulatory deferral. However, as HL’s internal deferral

framework would result in a greater level of annual bonus deferral than the regulatory requirements, Dan Olley and Amy Stirling are both

subject to the internal deferral framework as well. Therefore 38% of bonus for Dan Olley and 37% of bonus for Amy Stirling was deferred

into nil cost options with no further performance conditions to apply, but subject to continued employment.

Assessment of 2019 Sustained Performance Plan (SPP) Awards

(1 July 2019 to 30 June 2024)

The Committee assessed the achievement of the following underpinning performance conditions

over a period of five financial years as follows:

Condition Achievement

The average assets under administration (as determined

by the Board) for the complete financial year prior to

Vesting exceeds the average assets under administration

(as determined by the Board) for the financial year immediately

before the beginning of the Performance Period.

Met

(FY19 average AUA: £92.8m,

FY24 average AUA: £142.6m)

The Board determines that a satisfactory risk, compliance

and internal control environment has been maintained during

the Performance Period.

Met

Management maintained the

risk and control environment

over the performance period.

The Board determines that the participant’s personal

performance has been satisfactory during the

Performance Period.

Met

The Committee concluded that all underpinning performance conditions were met and therefore it

was satisfied that the awards should vest in full.

100

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

ANNUAL REPORT ON REMUNERATION

CONTINUED

Assessment of 2021 Sustained Performance Plan (SPP) Awards

(1 July 2021 to 30 June 2024)

The Committee assessed the achievement of the following underpinning performance conditions

over a period of three financial years as follows:

Condition Achievement

The average assets under administration (as determined

by the Board) for the complete financial year prior to the

end of the Performance Period exceeds the average

assets under administration (as determined by the Board)

for the Financial Year immediately before the beginning

of the Performance Period.

Met

(FY21 average AUA: £119.5m,

FY24 average AUA: £142.6m)

The Board determines that a satisfactory risk, compliance

and internal control environment has been maintained

during the Performance Period.

Met

Management maintained the risk

and control environment over the

performance period

The Board determines that the Participant’s personal

performance has been satisfactory during the

Performance Period.

Met

The Committee concluded that all underpinning performance conditions were met and therefore

it was satisfied that the awards should vest in full. A two year holding period is to apply ending

September 2026.

Malus and clawback

Variable awards are subject to malus and clawback provisions in exceptional circumstances.

In addition, the Committee can defer a decision to grant variable awards, or award and suspend

payment of bonuses, and/or vesting of deferred or long-term awards for any individual in scope of

an investigation into their conduct or responsibility, accountability or knowledge and/or influence

over any material risk event identified during or after the performance year. The triggers that apply

to malus and clawback under all incentive plans are set out on page 95 of the 2023 Report and

Financial Statements.

101

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

Share awards made during the year ending 30 June 2024 (audited)

Name of Director

Type of

award nil

cost options

under:

Market value

of maximum

award at date

of grant

Exercise

price

Share price on

day of grant

Number of

shares over

which the

award was

granted

Face value

of award

% of face

value that

would vest at

threshold Performance period

Dan Olley Buy-out

380,590 0.00 7.82 48,668 380,584 n/a n/a

Dan Olley Buy-out

47,250 0.00 7.82 6,042 47,248 n/a n/a

Dan Olley Buy-out

47,250 0.00 7.82 6,042 47,248 n/a n/a

Dan Olley Buy-out

47,250 0.00 7.82 6,042 47,248 n/a n/a

Dan Olley Buy-out

398,959 0.00 7.82 51,017 398,953 n/a n/a

Dan Olley Buy-out

421,875 0.00 7.82 53,948 421,872 n/a n/a

Dan Olley SPP

365,000 0.00 7.82 46,675 364,999 n/a 1 July 2023 to 30 June 2026

Dan Olley PSP

1,095,000 0.00 7.27 150,618 1,094,993 25 1 July 2023 to 30 June 2026

Dan Olley SAYE

n/a 5.56 6.94 3,336 23,152 n/a n/a

Chris Hill Deferred bonus

864,628 0.00 7.82 110,566 864,626 n/a n/a

Amy Stirling SPP

262,500 0.00 7.82 33,567 262,494 n/a 1 July 2023 to 30 June 2026

Amy Stirling PSP

682,500 0.00 7.27 93,878 682,493 25 1 July 2023 to 30 June 2026

Amy Stirling Deferred bonus

439,094 0.00 7.82 56,150 439,093 n/a n/a

Notes

1 The number of shares awarded was calculated using the value of HL shares as detailed in note 2.

2 Face value is calculated by reference to,

բ the average of the mid-market value of HL shares on 15, 18 and 19 September 2023 multiplied by the number of options granted

for the SPP, deferred bonus and buy-outs

բ the average of the mid-market value of HL shares on 13, 14 and 15 December 2023 multiplied by the number of options granted

for the PSP

բ the close of business value of HL shares on 19 March 2024 multiplied by the number of options granted for the SAYE

3 Further details of Dan Olley’s buy-out awards are available on page 103

4 Awards under the SPP were granted on 20 September 2023 as nil cost options at 50% of base salary subject to the achievement of

underpinning performance conditions assessed over a three-year performance period. The awards, once vested, will be subject to a

two-year retention period. The underpinning performance conditions are:

բ A requirement for average AUA for the last complete financial year prior to the third anniversary of grant to be above the average

AUA for the last complete financial year prior to award;

բ Maintenance of and continued management focus to improve risk, compliance and internal control environment across the

performance period; and

բ Satisfactory personal performance throughout the performance period.

5 Awards under the PSP were granted on 18 December 2023 as nil cost options at 150% of base salary for Dan Olley and 130% of base

salary for Amy Stirling subject to achievement of performance conditions assessed over a three-year performance period. The awards

once vested will be subject to a two-year retention period. The performance conditions are:

Measure (unaudited) Weighting

Threshold

(25% of award)

Maximum

(100% of award)

Relative TSR (performance assessed against FTSE 51–100 companies,

excluding investment trusts)

30% Median Upper Quartile

Cumulative statutory EPS 50% 145p 225p

Environmental & Social:

Responsible employer (senior women representation) 20% 36% 40%

Responsible employer (ethnic minority representation) 6% 10%

Responsible business (scope 1, 2 & 3 business travel and employee

commuting)

Climate neutral

by FY26

Climate +ve

by FY25

Responsible Fund Manager (Scope 3 financed emissions targets agreed and

TCFD reporting across HLFM funds)

Qualitative assessment of progress

made to target setting

6 Awards under the SAYE were granted as options on 17 April 2024.

7 Awards under the deferred bonus were granted as nil cost options on 20 September 2023. These awards are not subject to any

forward-looking performance conditions.

ANNUAL REPORT ON REMUNERATION

CONTINUED

102

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

ANNUAL REPORT ON REMUNERATION

CONTINUED

All-employee share plans

The Company operates a SAYE share option scheme on the

same terms for all employees, including a 20% discount on the

exercise price of options under the scheme. All employees are

encouraged to become shareholders, through direct ownership

and/or through participation in the share scheme. At the end

of the latest financial year, 38% of the Group’s employees

were participating in a SAYE. The CEO opted to participate

in the 2024 cycle of the SAYE scheme and the CFO opted to

join the 2022 cycle.

Sourcing shares

The Investment Association guidelines on sourcing shares have

been followed and, in line with the scheme rules, the Company

has not issued shares under all employee schemes which,

when aggregated with awards under all of the Company’s other

schemes, exceed 10% of the issued ordinary share capital in any

rolling ten year period. The Company has also not issued new

shares under executive (discretionary) schemes which exceed

5% of the issued ordinary share capital of the Company in any

rolling ten year period.

Executive Directors’ shareholding and share interests

(audited)

The current guideline for Executive Directors to accumulate

minimum personal holdings in Hargreaves Lansdown plc

shares amounts to a value of three times base salary within six

years of appointment to the Board. Current shareholdings are

summarised in the following table:

Name of Director

Beneficially

owned

at 30 June

2023

Beneficially

owned

at 30 June

2024

Outstanding

share options

subject to

continued

employment

arising from

SAYE scheme

Outstanding

share options

subject to

continued

employment

arising from

other plans

Outstanding

share options

subject to

performance

conditions and

continued

employment

arising from

sustained

performance

plan and the

performance

share plan

No. of share

options

exercised

in year

No. of share

options

vested but

unexercised

at 30 June

2024

Shareholding

guideline

(multiple of

base salary)

Shareholding

as a multiple

of base salary

achieved

at 30 June

2024

Shareholding

guideline met

Dan Olley 0 7,242 3,336 91,032 197,293 0 0 Three times 152% no

Amy Stirling 13,881 24,392 2,227 33,731 158,400 3,747

0 Three times 125% no

Chris Hill

87,321 87,321 1,547 80,763 79,087 0 7,321 Three times 272% no

Notes

1 Includes shares held by the Executive Directors and their connected persons.

2 The number stated is the gross number of share options and is subject to income tax and NIC on exercise

3 Audited – at present the Executive Directors have not currently met their shareholding guideline. As the CEO and CFO only joined in August 2023 and February 2022 respectively, they will continue to build their shareholdings during the relevant time period.

4 Chris Hill’s share interests are shown as at 7 August 2023 when he stepped down from the role of Chief Executive Officer. Following his departure on 17 October 2023, Chris Hill’s continuing interest in performance shares has been pro-rated to the period he was employed during

each performance period.

5 Options exercised granted under 2022 Deferred Bonus Plan (DPBP). The market value at the date of exercise was £7.70 per share and the option exercise price in aggregate for 3,747 options was £1.00.

There has been no subsequent change in Executive Directors’ shareholding and share interests as at the date of this report.

103

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

ANNUAL REPORT ON REMUNERATION

CONTINUED

Pension (audited)

No Directors or employees participate in a defined benefit

pension scheme nor have any future entitlement benefits under

such an arrangement.

The Group operates its own Group Self Invested Personal

Pension (the GSIPP) which applies to Executive Directors

and employees. The Company requires a minimum employee

contribution of 5% of reference salary and in exchange the

Company will contribute 5%. Employees who contribute up

to 3% more than the 5% receive double matching. This means

that for an 8% employee contribution the Company contribution

is 11%.

Colleagues wishing to make additional contributions to the

GSIPP can do so via salary exchange or bonus waiver ensuring

that they benefit from the maximum, immediate relief from

income tax and National Insurance.

Additionally, the Group has a pension redirection mechanism

where colleagues who have maximised their pension tax

relief can contribute, on a post-tax basis, to a Fund & Share

Account and continue to receive matching in the same way

as the current pension matching, up to a maximum 11%

employer contribution, net of appropriate taxes. Where a

colleague, who has maximised their pension tax relief

does not wish to contribute to a savings vehicle, the Group

will make an additional monthly payment equivalent to

the employer’s pension contribution amount forsaken up

to a maximum of 5% of reference salary. The Committee

confirms that no excess retirement benefits have been

paid to current or past Executive Directors.

Joining arrangements for Dan Olley (audited)

Dan Olley was appointed Chief Executive Officer on 7 August

2023. His remuneration arrangements were set in line with our

new Remuneration Policy and are detailed within this Annual

Report on Remuneration. In order to facilitate his appointment,

Dan Olley also received a buy-out in lieu of forfeited annual

bonus and long-term incentive plan awards from his

previous employers.

In making the buy-out, the Committee looked to maintain

consistency with the awards forfeited in terms of the form of

awards (e.g. cash or shares), expected value, vesting terms

and original time horizons, taking into account performance

assessment, where appropriate. The replacement awards are

no more generous than the awards that were forfeited.

The buy-out consisted of:

բ Share awards to replace long-term awards from his previous

employer. These had a grant value of £380,590 which vested

in September 2023 and £398,959 and £421,875 which are

due to vest in October 2024 and March 2025, respectively.

բ A cash payment of £94,500 in August 2023 and share

awards with an aggregate grant value of £141,750 that

are due to vest in equal instalments in September 2024,

September 2025 and September 2026. The share

awards are subject to a post-vesting six-month holding

period. This replaced a forfeited bonus opportunity

at his previous employer.

բ A cash payment of £712,435 in August 2023 to compensate

for a buy-out award paid by his previous employer but

subsequently forfeited as a result of his appointment at HL.

The aggregate value of the replacement awards is set out in

the single figure table on page 96 and details of individual share

awards are disclosed in the “Share awards made during the

year” table on page 101.

The awards remain subject to continued employment and malus

and clawback as well as enhanced forfeiture provisions such

that awards would need to be repaid if Dan Olley left within

12 months of commencing employment.

Payment for loss of office (audited)

Chris Hill retired and stepped down as Chief Executive Officer

on 7 August 2023. Details of remuneration arrangements

associated with his departure were disclosed in the 2023

Directors’ Remuneration Report.

In accordance with the terms of his service agreement and the

Policy, Chris Hill received his salary and contractual benefits

until the end of his notice period on 17 October 2023. The value

received while Chief Executive Officer is included in the single

figure table on page 96 and the value received in the period

7 August to 17 October 2023 was £160,165. He did not receive

any annual bonus or long-term incentive awards in respect

of FY24.

As set out in last year’s report, all outstanding deferred bonus

awards will continue on their original terms and be released

on the original vesting dates. Chris Hill was treated as a ‘good

leaver’ in respect of his outstanding SPP awards. Accordingly,

these awards will continue and vest on their original vesting

date, subject to the extent that the performance conditions are

met, and time pro-rated to reflect period in employment. The

value of his 2019 and 2021 SPP awards, which will vest in 2024,

are included in the single figure table on page 96. All awards will

remain subject to malus and clawback provisions.

He will maintain a post-employment shareholding in accordance

with the Policy for a period of two years following cessation

of employment.

We made no other payments within the scope of the disclosure

requirements to any past director during the year ended

30 June 2024.

Payments to third parties (audited)

The Committee confirms that no amounts have been paid

to third parties in respect of Directors’ services.

Total Shareholder return

FTSE 350 Financial Services index Hargreaves Lansdown

FTSE 51–150 companies

300

250

200

150

100

2014 2024

104

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

ANNUAL REPORT ON REMUNERATION

CONTINUED

Remuneration in context

Total shareholder return

The following graph shows the Company’s performance

measured by total shareholder return (TSR), which is the

capital growth and dividends paid. This is compared with

the performance of the FTSE 350 Financial Services Index

and FTSE 51–150 companies (excluding investment trusts)

for the last ten years.

This chart shows the value of £100 invested in the Company on

1 July 2014 compared with the value of £100 invested in each of

the above two comparator groups for each of our financial year

ends to 30 June 2024. We have chosen the FTSE 350 Financial

Services Index as we believe this is the most appropriate broad

comparator for benchmarking our corporate performance over

the ten year period. We have also included the FTSE 51–150

(excluding investment trusts) to align to the comparator group

used when assessing TSR performance for the PSP.

Chief Executive Officer remuneration for the past ten years

CEO Total remuneration Annual bonus as a percentage of maximum Shares vesting as a percentage of maximum

2015 Ian Gorham £2,058,642 52% (£1,170,000) nil

2016 Ian Gorham £2,070,861 78% (£1,550,000) nil

2017 Ian Gorham

/Chris Hill

£1,167,549/£1,035,211 43%/81% (£600,000/£790,625) 66%

2018 Chris Hill £2,454,048 81% (£1,700,000) 39%

2019 Chris Hill £648,278 nil nil

2020 Chris Hill £2,739,520 94% (£2,072,000) nil

2021 Chris Hill £2,678,581 86% (£1,958,092) nil

2022 Chris Hill £1,944,122 37% (£963,375) 100%

2023 Chris Hill £2,581,183 49.4% 100%

2024 Chris Hill

/Dan Olley

£437,125/£3,784,388 nil/54% 100%

Notes

1 Emoluments for Ian Gorham for 2017 are shown for the period to 9 February 2017 when he stepped down as Chief Executive Officer.

2 Emoluments for Chris Hill for 2017 reflect his emoluments for the period from 9 February 2017, and exclude his earnings as Chief Financial Officer and Deputy Chief Executive Officer prior to that date.

3 Emoluments for Chris Hill for 2024 are shown for the period to 7 August 2023 when he stepped down as Chief Executive and exclude his earnings after this.

4 Emoluments for Dan Olley for 2024 reflect his emoluments for the period from 7 August 2023 and exclude his earnings as a NED prior to that date.

105

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

ANNUAL REPORT ON REMUNERATION

CONTINUED

Percentage change of all Directors and all employees

The table below shows the average percentage change in remuneration of each Executive and Non-Executive Director against all UK employees of the Group for the last five years, between years

ended 30 June 2020 and the year ended 30 June 2024 inclusive.

Element of pay

Average

employee

(% change)

Executive Directors

(% change)

Non-Executive Directors

(% change)

D Olley

A Stirling C Hill

A Platt

Oppenheimer

J Troiano M Mannings A Blance

A Collins R Perkin

D Olley

P James

D Pope

M Morley

Base Salary 2024 9.52% – 0% – – -56.03% 0% 0% 2.02% 0% -60.24% -90.13% 42.79% 45.61% –

2023 9.97% – 0% 4.29% – 0% 0% 0% 0% 0% -2.70% 0% 20% – –

2022 6.59% – – 8.02% – 0% 1.92% 27.01% 31.99% 55.15% -2.30% 2.99% – – –

2021 6.85% – – 2.86% – 2.92% 103.64% – – – 11.33% 2.86% – – –

2020 6.41% – – 2.90% – 0% – – – – 4.30% 0% – – –

Benefits 2024 32.97%

– 64%

64%

– -53.44% -44.49% -44.33% 6.43% -0.22% -91.19% -100% 560.45% 745.32% –

2023 0.12% – -75%

-2.06% – -24.33% -35.01% -3.75% -48.53% 37.32% 265.68% 0.96% -60.06% –

2022 -11.13% – – 0% – – –

2021 -7.15% – – -78.72%

– -100%

-100%

– – – -100%

-100%

– – –

2020 2.82% – – 0% – – – – – – – – – –

Annual

Bonus

2024 -3.6% – -30.7%

-100% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

2023 12.20% – 281%

49.58% – n/a n/a n/a n/a n/a n/a n/a n/a n/a –

2022 -6.70% – – -50.82% – n/a n/a n/a n/a n/a n/a n/a n/a – –

2021 0.80% – – -5.50% – n/a n/a – – – n/a n/a – – –

2020 11.80% – – – – n/a n/a – – – n/a n/a – – –

Notes

1 This table shows the average percentage change in salary, benefits and bonus (on a full-time equivalent basis) delivered to eligible colleagues in the last five years. This population has been chosen as there are no employees of the parent company and this is considered the

most appropriate comparator group for these purpose.

2 Dan Olley transitioned from the role of Non-Executive Director to Chief Executive Officer on 7 August 2023. Remuneration has been shown separately for these roles.

3 Chris Hill stepped down from the Board, and as Chief Executive Officer on 7 August 2023.

4 The table includes A Platt who was appointed Chair on 6 February 2024. It is therefore not possible to reflect a percentage change figure.

5 The table includes D Oppenheimer and R Perkin who stepped down on 8 December 2023.

6 The increase in base salary for A Blance is attributable for the time in the role of Senior Independent Director (8 December 2023 to 6 February 2024).

7 The increase in base salary for P James is attributable for the time in the role of Chair of the plc Board (8 December 2023 and 6 February 2024).

8 The increase in base salary for D Pope is attributable to his appointment to Audit Committee Chair on 15 September 2023.

9 M Morley was appointed as a Non-Executive Director on 1 August 2023. It is therefore not possible to reflect a percentage change figure.

10 The increase in benefits for the average employee, A Stirling and C Hill is attributable to the large increase in the PMI premium in 2024.

11 The decrease in benefits for C Hill and A Stirling is due to the exclusion of the SAYE discount value over the full three-year contract term which was reported last year (in accordance with the single figure methodology).

12 As there were no taxable expenses reimbursed for the Non-Executive Directors for the 2020/21 performance year, it is not possible to show the percentage change to the 2021/22 performance year.

13 The decrease in bonus is attributable to the change in bonus opportunity in the Remuneration Policy approved by shareholders at the 2023 AGM.

14 The increase in annual bonus for A Stirling is largely attributable to receipt of a pro rata bonus in the 2022 performance year having joined HL on 21 February 2022.

106

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

ANNUAL REPORT ON REMUNERATION

CONTINUED

CEO pay ratio

The table below sets out the ratio at median, 25th and 75th percentile of the total remuneration

received by the CEO for the last five years compared to the total remuneration received by our

UK colleagues. For the past five years, we have published our CEO pay ratio using the same

methodology as set out below.

Year Method

Lower

quartile Median

Upper

quartile

Change in

median

2020 Option A 103:1 73:1 47:1 n/a

2021 Option A 101:1 73:1 47:1 0%

2022 Option A 73:1 52:1 32:1 -29%

2023 Option A 88:1 60:1 36:1 15.4%

2024 Option A 73:1 47:1 27:1 -22%

Notes to the calculations:

1 The median, 25th and 75th percentile colleagues were determined based on calculating total annual remuneration up to and including

30 June 2024 for colleagues employed at 30 June 2024.

2 Basic salary for part-time colleagues and new joiners within the calculation year have been converted into full-time annualised

equivalent values for the purposes of the calculations.

3 For 2024, recognising the change in leadership during the year, CEO pay is calculated taking into account the pay of both Chris Hill and

Dan Olley. The ratios included in the above table do not include the buy-out made to Dan Olley given this is a one-off payment and not

part of ongoing remuneration for the CEO. The ratios including the buy-out are 149:1, 97:1 and 56:1 at the lower quartile, median and

upper quartile, respectively.

4 ‘Option A’ was chosen from the options available in the reporting regulations since it is the most robust and statistically accurate method.

5 Benefits are provided on the same terms to Executive Directors and all employees alike and as such are not included within the table

above. The methodology used in these calculations is consistent with those in the single figure table, with the same approach being

taken each year since 2020.

Year Pay element

UK employee

lower quartile

UK employee

Median

UK employee

upper quartile

2024 Basic salary 26,000 34,670 59,000

Total remuneration 28,367 43,608 75,902

The pay ratio has decreased this year given the CEO’s target bonus award has reduced in line

with the remuneration policy approved by shareholders at the AGM in 2023. In addition the CEO’s

bonus was pro-rated to reflect his time in role and the previous CEO did not receive a bonus

award in the year.

The remuneration policies and practices at HL are consistent across both our Executive Directors

and the wider workforce and are designed to promote the long-term success of the Company,

promoting both high individual and team performance. The same considerations and criteria

apply across a consistent framework during the assessment of performance and pay outcomes,

noting that the quantum of (risk-based) variable pay is higher for the CEO than across the

wider workforce.

Having overseen the application of performance and pay policies, and reviewed reports from the

Executive Committee and Colleague Forum throughout the period, the Committee is satisfied that

our 2024 median pay ratio is consistent with the Company’s wider pay, reward and progression

policies for our UK employees.

Relative importance of the spend on remuneration

The table below shows the actual expenditure of the Group in terms of total employee

remuneration, profit before tax, and total dividends for this and the previous year together with

the percentage change between the years. Profit before tax has been chosen as a metric in this

instance to demonstrate the profits generated for shareholders and the relationship between

this and the overall cost of employee remuneration.

Total

dividend

paid

£m

Profit

before

tax

£m

Employee

costs

£m

Total

dividend

declared

(pence per

share)

2024 199.2 396.3 203.0 43.2p

2023 190.4 402.7 179.3 41.5p

% change 4.6% 1.6% 13.2% 4%

Notes

1 Further details are set out on page 136

All employees across the Group are subject to the same process in respect of annual salary

reviews. Consideration is given to the scope of each role, the level of experience, responsibility,

progress in role, and pay levels for similar roles in comparable companies. The performance and

potential of the individual is also considered.

Participation in variable pay varies by grade, with our more junior colleagues receiving primarily

fixed pay. For those employees eligible for an annual performance bonus, or equivalent, individual

performance metrics are used to determine awards and similar metrics to those used for the

Executive Directors guide the overall bonus pool. All eligible employees (under the rules of the

scheme) may also participate in the Group’s SAYE.

107

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

ANNUAL REPORT ON REMUNERATION

CONTINUED

Chair and Non-Executive Director remuneration

Fees for Non-Executive Directors are structured with a base fee payable to all Non-Executive

Directors, with additional fees paid for the role of Senior Independent Director and for the Chairs

of Board sub-committees.

Fees for Non-Executive Directors for the 2024 financial year are as follows:

Fee Policy

Fees from

1 July 2024

(£ p.a.)

Fees from

1 July 2023

(£ p.a.)

Chair £334,500 £334,500

Base fee for Non-Executives £74,150 £74,150

Senior Independent Director £15,850 £15,850

Chair of Audit Committee £21,100 £21,100

Chair of Remuneration Committee £21,100 £21,100

Chair of Risk Committee £21,100 £21,100

Chair of Nomination Committee

£10,000 £10,000

Note

Under current arrangements the Chair fulfils this role for no additional fee.

The Non-Executive Director fee review will take place later in the year with potential for changes

from the half year.

Remuneration payable for the 2024 financial year (1 July 2023 to 30 June 2024)

(audited)

The remuneration received by Non-Executive Directors in 2024 is set out below.

2023

fees

(£)

2023

Taxable

Benefits i.e.

expenses

(£)

2023

Total

(£)

2024

fees

(£)

2024

Taxable

Benefits i.e.

expenses

(£)

2024

Total

(£)

D Oppenheimer

334,500 21,263 355,763 147,065 9,901 156,966

A Platt

– – – 136,782 759 137,541

M Mannings 95,250 2,030 97,280 95,250 1,130 96,380

A Blance 95,250 2,052 97,302 97,177 2,184 99,361

A Collins 74,150 1,389 75,539 74,150 1,386 75,536

R Perkin

95,250 3,687 98,937 37,875 325 38,200

D Olley

74,150 914 75,064 7,316 0 7,316

J Troiano 114,150 807 114,957 114,150 448 114,598

P James 90,000 440 90,440 128,515 2,906 131,421

D Pope

61,792 342 62,134 89,975 2,891 92,866

M Morley

– – – 67,971 162 68,133

Notes

1 Deanna Oppenheimer and Roger Perkin stepped down on 8 December 2023

2 Alison Platt was appointed Chair on 6 February 2024

3 Dan Olley transitioned from the role of Non-Executive Director to Chief Executive Officer on 7 August 2023. The figures shown in the

table above are in respect of his services as a Non-Executive Director.

4 Darren Pope was appointed on 1 September 2022.

5 Michael Morley was appointed on 1 August 2023

Non-Executive Directors received no other benefits or other remuneration other than

reimbursement of all reasonable and properly documented travel, subsistence and other

incidental expenses incurred in the performance of their duties and any tax and social costs

arising thereon, the benefit of officers’ liability insurance and reduced fees for the use of

Hargreaves Lansdown services for themselves and connected persons, on the same basis

as all other Hargreaves Lansdown employees.

108

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

ANNUAL REPORT ON REMUNERATION

CONTINUED

Non-Executive Directors’ shareholdings table (audited)

The table below shows, as at 30 June 2024; the Company shares held by the Non-Executive

Directors and connected persons:

D Oppenheimer 30,572

A Platt 18,696

M Mannings Nil

A Blance Nil

A Collins 13,400

R Perkin Nil

J Troiano 14,400

P James Nil

D Pope 3,999

M Morley Nil

Note

There has been no subsequent change in current Non-Executive Directors’ shareholdings as of 24 July 2024.

Non-Executive Directors’ Service Contracts

Details of the Non-Executive Directors’ terms of appointment are set out below

Commencement

of appointment Date of contract

Expiry/review date

of current contract

D Oppenheimer 2 February 2018 2 February 2021 8 December 2023

A Platt 6 February 2024 6 February 2024 5 February 2027

M Mannings 1 September 2020 1 September 2023 31 August 2026

A Blance 1 September 2020 1 September 2023 31 August 2026

A Collins 2 November 2020 1 November 2023 30 October 2026

R Perkin 1 September 2017 1 September 2023 8 December 2023

D Olley 1 June 2019 1 June 2022 7 August 2023

J Troiano 1 January 2020 1 January 2023 31 December 2025

P James 1 September 2021 1 September 2021 31 August 2024

D Pope 1 September 2022 1 September 2022 31 August 2025

M Morley 1 August 2023 1 August 2023 31 July 2026

Non-Executive Directors are appointed for a three-year term, subject to confirmation by

shareholders at the following annual general meeting (AGM) and annual re-election at each

subsequent AGM.

109

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

Implementation of the Remuneration Policy in FY25 – Executive Directors

Salary

The Executive Directors’ base salaries were reviewed in June 2024. In reviewing base salaries,

the Committee takes into account salaries paid elsewhere across the Group, relevant market data

and information on remuneration practices in the financial services sector.

Dan Olley was appointed as CEO in August 2023 on a salary of £730,000. This was in line with the

salary of his predecessor. In considering his salary for FY25, the Committee took into account his

strong performance in the year. Notwithstanding this, Dan Olley requested that his salary remain

unchanged for FY25 recognising that he had only been in role for less than a year.

For Amy Stirling, a salary increase of 3.5% is proposed. This is in line with the average salary

increase across our senior leadership population, but below the salary increase for the wider

workforce at 3.7%. This is the first salary increase Amy has received since her appointment

as CFO in February 2022, having requested not to take an increase last year.

Name of Director

Salary as at

1 July 2023

(£)

Salary as at

1 July 2024

(£)

increase

Dan Olley – 730,000 0%

Amy Stirling 525,000 543,375 +3.5%

ANNUAL REPORT ON REMUNERATION

CONTINUED

Annual bonus

In FY25, whilst our headline strategic pillars remain the same, we will be focusing on five key

priorities to drive the business forward, with the management team setting out their individual

priorities against each of these. The Committee has determined that it is appropriate to continue

to align the assessment of annual bonus awards against the strategic priorities whilst maintaining

a strong focus on financial performance (56% across profit before tax, underlying costs, net new

business and asset retention).

The performance assessment will include the following measures:

Priority Weighting Measure*

Drive new Client Growth 16% Net New Business (NNB)*(16%)

Increase Retention 16% Asset Retention*(%) (8%)

Client NPS (8%)

Drive execution, decrease toil 16% Profit Before Tax (Statutory) (£m)*(16%)

Save to Invest 16% Underlying Cost* (16%)

Performance Culture 16% Colleague Engagement (8%)

Risk and Controls (Maturity Risk Score)

(8%)

Total 80%

Note:

* indicates financial/growth measures which together make up 56% of the overall performance assessment.

The measures remain largely same as in FY24 with the exception of client retention which has

been replaced by asset retention.

110

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

ANNUAL REPORT ON REMUNERATION

CONTINUED

Performance Share Plan (PSP)

For FY25, the CEO and CFO will receive a PSP award with a maximum opportunity of 150% of

salary and 130% of salary, respectively, subject to satisfactory personal performance in the period

prior to grant.

These awards will be assessed against achievement of the below performance measures over

a period of three financial years (1 July 2024 to 30 June 2027):

Measure Weighting

Threshold

(25% of award)

Maximum

(100% of award)

Relative TSR

30% Median Upper Quartile

Cumulative EPS

50% 155.0p 245.0p

Environmental and Social:

Responsible employer (senior women

representation)

5% 38% 42%

Responsible employer

(ethnic minority representation)

5% 0% 14%

Responsible Fund Manager (scope 3

financed emissions targets agreed

and TCFD reporting across

HLFM funds)

10%

Reduction of 35%

on 2019 baseline

Reduction of 40%

on 2019 baseline

1. Relative TSR is assessed against the FTSE 51–150 companies (excluding investment trusts) comparator group.

2. The cumulative statutory EPS target has been set at a stretching level in the current economic environment, based on internal plan and

consensus forecast for the relevant period.

Targets have been set at the start of the financial year based (where applicable) on the

agreed operating plan and taking account of consensus. The targets set in relation to these

measures are considered to be commercially sensitive but will be disclosed in next year’s Annual

Remuneration Report.

The assessment of any award will also take account of each Executive Director’s personal

contribution (being 20% of the overall maximum outcome) and will include an overlay that takes

account of the conduct, behaviours and culture evidenced by each Executive Director in line with

the Hargreaves Lansdown values.

Risk and compliance considerations will also be taken into account at both Company and

individual levels.

In making an assessment of performance, the Committee retains flexibility to apply discretion

to the formulaic outcome in line with the Policy and details of the Committee’s assessment will

be given in the Annual Report on Remuneration next year. Malus and clawback will apply.

Bonus opportunities are as follows:

On-target bonus opportunity

(% of base salary)

Maximum bonus opportunity

(% of base salary)

Dan Olley

125% 250%

Amy Stirling 110% 220%

111

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

Sustained Performance Plan (SPP)

For FY25, each Executive Director is to receive an SPP award with a maximum opportunity of 50%

of base salary, subject to satisfactory personal performance in the period prior to grant.

Awards will be assessed against achievement of the below underpinning performance conditions

over a period of three financial years:

բ A requirement for average AUA for the last complete financial year prior to the third anniversary

of grant to be above the average AUA for the last complete financial year prior to award;

բ Maintenance of and continued management focus to improve risk, compliance and internal

control environment across the performance period; and

բ Satisfactory personal performance throughout the performance period.

In assessing performance for both the PSP and SPP, the Committee will review performance

against these underpinning conditions in the round and will retain flexibility to apply discretion

in line with the Policy. The Committee also retains discretion to make adjustments to the vesting

outcome if it is not considered to be appropriate taking into account share price performance

including consideration of any windfall gains arising and any other significant events which may

have impacted the Company’s share price or the market as a whole.

ANNUAL REPORT ON REMUNERATION

CONTINUED

Statement of voting at the AGM

At the AGM held in 2023, votes cast by proxy and at the meeting in respect of the Directors’ Remuneration Report were as follows:

Resolution

Votes for

(including

discretionary

votes)

for

Votes

against

Total votes cast

excluding votes

withheld

Votes

withheld

Total votes cast

including votes

withheld

Approve Directors’ Remuneration Report (excluding the Policy) 302,104,242 96.96 9,466,162 3.04 311,570,404 93,880,116 405,450,520

Approve Directors’ Remuneration Policy in 2023 293,385,741 95.09 15,147,800 4.91 308,533,541 96,916,978 405,450,519

Moni Mannings

Chair of the Remuneration Committee

14 August 2024

At the end of the performance period, any vested PSP and SPP awards will be subject to a further

two-year holding period such the performance and holding periods together span a minimum of

five years.

In line with the Policy, dividend alternatives will accrue and both PSP and SPP awards are subject

to a formal malus and clawback mechanism.

112

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

NOMINATION & GOVERNANCE COMMITTEE REPORT

ensuring the right capabilities

are in place to execute on the

strategy and drive value for

shareholders and clients

Alison Platt

Chair of the Nomination & Governance Committee

Dear Shareholder,

As Chair of the Nomination & Governance Committee, I am

pleased to present this report on the Committee’s activities in

the year under review.

The Committee has overseen a busy year including my own

appointment and the Committee’s expansion into a Nomination

& Governance Committee.

Role of the Nomination Committee

The detailed responsibilities of the Committee are set out in its

terms of reference, which are available on the Group’s website

at www.hl.co.uk/about-us/board-of-directors

At a summary level the Committee plays a key role in:

բ Reviewing and monitoring the composition of the Board

and its Committees to ensure the right balance of skills,

knowledge and experience;

բ Conducting ongoing succession planning to ensure there

is a diverse pipeline of talent for appointments to the Board

and senior management;

բ Leading the process for appointments to the Board and

re-election of Directors;

բ Providing oversight of the Group’s approach to Inclusion

and Diversity;

բ Ensuring the Board and its Committees are functioning

effectively through the oversight of the annual evaluation of

the Board’s performance. The Committee also monitors the

Group’s progress in implementing recommendations; and

բ Supporting the plc Board on defined governance items

such as reviewing compliance with good practice, reviewing

and recommending key documentation for publication and

overseeing the Colleague Forum (formerly a responsibility

of the Remuneration Committee).

As noted in the prior year’s report, whilst a key focus of the

Committee has been on Chair succession the Committee

has also devoted time to working with members of the ELT to

further develop succession planning and talent management

within the business with a focus on diversity. This is to ensure

the Company has the right skills in the right place and at the

right time to support the ongoing execution of the strategy.

Composition and meeting attendance

At the date of this report (14 August 2024), Committee

members are Alison Platt (Chair), Andrea Blance, Penny James,

Moni Mannings, Michael Morley, Darren Pope and John Troiano

each of whom are independent Non-Executive Directors. Not

all have been members throughout the period under review –

details can be found on page 67. The membership satisfies the

Code requirement that a majority of members are independent

Non-Executive Directors.

Committee appointments are made for three-year terms and

can be extended for no more than two additional three-year

terms, provided that the member still meets the criteria for

membership and annual re-election at the AGM by shareholders.

The Board regularly reviews the composition of the Committee

and makes appointments accordingly.

The Committee met six times in the period under review.

The attendance of members is set out in the table on page 67.

Other individuals attend Committee meetings at the request of

the Committee Chair and usually include the Chief Executive

Officer and Chief People Officer and, where relevant, the

Group’s external advisers. The Committee has access to the

Group Company Secretary, who also acts as secretary to the

Committee. The Committee is authorised to obtain independent

professional advice where it considers it necessary.

GOVERNANCE

SUPPORTINGGROWTH

113

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

NOMINATION & GOVERNANCE COMMITTEE REPORT

GOVERNANCE SUPPORTING GROWTH CONTINUED

Committee activities during the period under review

Board size, structure and composition (including

skills matrix)

During the year the Committee regularly reviewed the size,

structure and composition of the Board, as well as conducting

annual reviews of the composition of its Committees. A review

of the Board skills matrix was undertaken against the needs of

the Group both now, and in the future, to deliver the Strategy

and aligned with governance requirements. In addition to the

search processes for a new Chair a search has also been

undertaken for an independent Non-Executive Director to

address the skills gap created by Dan Olley transitioning

to the role of CEO. It is anticipated a further search will be

undertaken to increase resilience within the Non-Executive

Director population and provide greater optionality in

contingency planning.

Succession planning

In tandem with considering composition during the year the

Committee also ensured appropriate succession planning for

both the Board and the Group’s senior management was in

place. This involved:

բ Reviewing the succession planning and talent pipeline for

members of the ELT and those who hold Senior Manager

Functions (SMFs) to ensure resilience in these key areas

is maintained;

բ Taking account of key drivers such as recommendations

from Board evaluations, feedback from meetings with key

stakeholders including the FCA, investors, the Committee’s

own reviews of Board size, structure and composition, and

developments in corporate governance good practice;

բ Actively considering mechanisms for staggering Board tenure

to manage evenly the distribution of change amongst the

Board; and

բ Reviewing arrangements for short-term contingency planning

to prepare for unexpected periods using existing talent –

for Non-Executive Directors, ELT members and individuals

holding SMFs. This process helped identify any areas of

over-reliance on key individuals which further supported the

decision to increase the number of Non-Executive Directors

sitting on the Board. The tenure of the Non-Executive

Directors was also considered as part of this process.

All of these assessments (relating to composition and

succession) were undertaken in line with the Group’s Board

diversity policy – the Committee reviews broader aspects

of diversity as part of its reviews of Board composition and

succession planning, and when searching for candidates.

Work previously undertaken by the Committee in assessing the

Board skills matrix and succession planning was used to feed

into the searches conducted by the Committee this year. In

addition, and in line with good practice, thought has been given

to the role of the Chair and how this will evolve as HL moves

deeper into its execution of the Strategy.

Approach to recruitment

The Committee leads the process for appointments to the

Board other than for the Nominated Director (Adrian Collins).

For both Executive and Non-Executive searches the Committee

uses input from: succession planning; contingency planning;

and regular assessment of Board and Committee composition

to identify the skills, knowledge and experience required in

candidates to meet the Group’s current and future requirements.

The aim is to refine the leadership of the organisation to ensure

the right capabilities are in place to execute on the strategy and

drive value for shareholders and clients.

For both Executive and Non-Executive searches the Committee

takes into account a number of factors, including the benefits

of diversity and balance of composition of the Board, including

in terms of ethnicity and gender. The Group’s policy is to work

with search firms who have signed up to the Standard Voluntary

Code of Conduct for Executive Search Firms on diversity and

best practice, and reject candidate lists that are not suitably

diverse without sufficient reason. The overriding requirement

is that recommendations for appointments are based on merit

against objective criteria, and that the best candidates are put

forward for consideration.

Search for a new independent Chair

The Company announced in July 2023 that as Deanna

Oppenheimer was due to participate in her sixth AGM as

Chair of the plc Board later that year work had commenced to

determine the attributes of any successor candidates. It was

felt that the timing was appropriate given good governance and

succession planning practices and being mindful that the CEO

transition was successfully underway.

Penny James (as SID) was nominated to lead the process

on behalf of the Committee which was supported by Spencer

Stuart. Spencer Stuart is independent of the Group although it

should be noted that Moni Mannings, Non-Executive Director,

sits on the Spencer Stuart Advisory Board. This potential

conflict was declared and noted by the Board ahead of any

search process commencing. The Board was satisfied that there

was no cross over between the search activities and those of

the advisory board. The Nomination & Governance Committee

managed the search as set out below providing regular updates

to Board members.

Step 1. A detailed candidate specification was agreed which

included specific attributes aligned with HL’s long-term direction

and culture including:

բ business leadership experience ideally within the

financial services sector with listed company experience;

բ experience of digitisation within a large

corporate environment;

բ Board and Chair experience;

բ well respected in the City, with a reputation for generating

shareholder value;

բ ability to facilitate Board debate and challenge recognising

HL’s stakeholder needs; and

բ support and hold the current Executive team to account

in executing HL’s strategy.

114

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Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

NOMINATION & GOVERNANCE COMMITTEE REPORT

GOVERNANCE SUPPORTING GROWTH CONTINUED

Step 2. Spencer Stuart presented a candidate long-list mapped

against the role profile which was reviewed by the Committee

leading to a shortlist of candidates. The Committee challenged

itself throughout the process on the skills and experience

sought against candidate profiles.

Step 3. Alongside the Committee’s work Spencer Stuart

confirmed with candidates capacity for the role including

time capacity and potential conflicts which fed into the short

list preparation.

Step 4. Face-to-face interviews took place between the

shortlist and each member of the Committee excluding the

incumbent Chair Deanna Oppenheimer who was recused from

the process. Preferred candidates were nominated to meet

Board members.

Step 5. Throughout the search the Committee regularly

challenged Spencer Stuart with regards to diversity of

candidates in terms of gender, ethnicity, geographical and

educational backgrounds. As a result the final evaluation led

to the Committee considering the core skills and personal

specifications of a number of high calibre candidates.

The Nomination & Governance Committee confirmed that

Alison Platt had demonstrated the desired capabilities and

experience including previous experience of working in

regulated environments, not least in her role as Chair of Ageas

(UK) Limited. It was also felt that she would be a sound cultural

fit for the organisation, providing considered leadership to both

the plc Board and Group. The Board unanimously approved

the recommendation that she be deemed independent on

appointment with the associated announcement being made on

29 November 2023. Alison took up the role of Non-Executive

Chair on 6 February 2024 following regulatory approval.

It was felt that Alison has significant and directly relevant

experience for HL including:

բ being a highly experienced FTSE Chair, board director and

senior leader across both private and listed companies in

highly regulated sectors;

բ four years as a FTSE CEO and more than twenty years in

healthcare and financial services, including at Bupa and as

a non-executive at L&G Financial Advice, both of which are

FCA regulated financial services businesses; and

բ experience of issues relevant to HL from increased

digitisation to transformation against a changing macro

backdrop through to regulatory changes such as

Consumer Duty.

You can find Alison’s full biography on page 62 with details of

the Board induction programme on page 68.

Search for a new independent Non-Executive Director

During the period under review, the Committee carried out a

detailed search for a new Non-Executive Director. The focus

of this search was primarily around increasing resilience within

the Non-Executive population of global technology skills given

the transition of Dan Olley to the CEO role. For this search the

Committee engaged Heidrick & Struggles which is independent

of the Group. At the time of writing the search remains ongoing.

Board induction and training

Once a new Board member has been appointed the Committee

oversees the induction programme that will support them in

understanding the Group and contributing to debate from an

early point. Each new Board member receives an induction pack

containing key material and is allocated a bespoke induction

plan. The latter is tailored depending on existing skills and

knowledge to ensure the new Board member understands

the Group’s purpose and Strategy, the operational environment

and regulatory requirements including Directors’ duties.

During the year the Committee received a summary of training

provided to Board members during the year. Further detail can

be found on page 69.

Director independence, time commitment

and re-election

The Committee conducted its annual review of the

independence of the Non-Executive Directors, and time

commitments of the Directors generally, at its June meeting.

In reviewing the independence of the Non-Executive Directors,

the Committee considered in detail whether any circumstances

had arisen, including those set out in Provision 10 of the

Code, which are likely to impair, or could appear to impair

the independence of each Non-Executive Director.

The Committee concluded that it considered each of the

Non-Executive Directors (other than the Nominated Director)

to be independent under the provisions of the Code. As

an appointee of a shareholder, the Nominated Director is

not considered to be independent, but contributes through

providing a link to Peter Hargreaves’ experience as well as his

own wealth of experience in the fund management industry.

The Nominated Director does not sit on any of the Committees

and given that the majority of the Non-Executive Directors

are independent, the Committee considers this adequately

compensates for any potential imbalance that may arise

from the presence of the Nominated Director.

In concluding that each of the Non-Executive Directors

has sufficient time available to allocate to the Company

as set out in their letters of appointment, the Committee

considered: the detailed requirements of the Code and

other key regulatory requirements; attendance records for

each Director and responsiveness to Company business; as

well as the confirmations given to the Chair by each of the

Non-Executive Directors that they continue to have sufficient

time to discharge their responsibilities effectively.

Based on its assessment of each Director’s performance and

ability to continue to contribute to the Board in light of the

knowledge, skill and experience they possess, the Committee

has recommended to the Board that each of the Directors is

eligible to be put forward for election or re-election at the 2024

AGM as appropriate.

115

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Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

NOMINATION & GOVERNANCE COMMITTEE REPORT

GOVERNANCE SUPPORTING GROWTH CONTINUED

Board effectiveness

The Committee oversaw progress against the internally led

2023 Board Effectiveness Review (BER) the key points of which

were detailed in last year’s Report and Financial Statements. All

actions were either closed or embedded into ongoing ways of

working.

With the last externally led BER having taken place in 2021 the

Committee appointed Independent Board Evaluation (IBE) to

facilitate the 2024 BER. To ensure that the new Chair received

enough time to bed into their role and therefore be able to

maximise the outputs of any BER the decision was taken to

run the review later in the calendar year than in 2023. This

will enable an in depth review of how the Board can perform

best both individually and collectively to support clients,

shareholders, colleagues and wider stakeholders.

Diversity

The Board believes that building a diverse and inclusive

workforce is important not just because it is the right thing to

do, but because it is good for the Group’s shareholders, clients,

its business and its people. The Group’s objective is to build a

diverse workforce at all levels and create an inclusive culture for

all. The Board is committed to creating a culture where people

treat each other with dignity and are encouraged to realise their

full potential.

The Group’s Inclusion & Diversity Policy supports this by making

clear the Group’s aspirations and commitment to inclusion and

diversity, and by defining the roles and responsibilities that will

support it in attaining its objectives. Further information can be

found on page 38. The Board Diversity Policy dovetails with the

wider Group Policy focusing on ensuring the Board is diverse

and provides role models for the organisation.

During the period, the Committee reviewed progress against

the Group’s Inclusion and Diversity Strategy and action plan.

In addition, the Committee and all other Board members were

included in Group-wide training relating to diversity covering

topics including implicit bias; micro aggressions; power and

privilege; and how to be an ally.

Further information on the Group’s progress in achieving

its objectives can be found on pages 18 to 20 of the Strategic

Report.

Gender balance

The Board continues to focus on gender diversity both at

Board level and in the Group’s senior management. The

Committee has overseen the development of specific strategic

initiatives in this respect, including to hire more, promote more

and retain more women in senior positions.

As of 30 June 2024, the Board numbered ten in total, five

of whom are women with three of the four senior Board

positions (defined as Chair, Senior Independent Director

Chief, Chief Executive Officer and Chief Financial Officer)

being held by women. The Board recognises that there is

always more to do with regards to diversity in all its elements

and continues to focus on promoting diversity as part of its

recruitment processes.

The Group continues to promote diversity across the

organisation and is proud to be a signatory to the Women in

Finance Charter, a government initiative to promote inclusion

and diversity. As of 30 June 2024, female representation across

the Group’s senior management (as per the Code definition)

was 43.5%. For these purposes ‘senior management’ comprises

members of the ELT and each of their direct reports including

administrative staff.

If administrative staff are removed then female representation

across the Group’s senior management as per the Companies

Act 2006 definition (which only includes those responsible for

planning, directing or controlling the activities of the Group or a

strategically significant part) was 41.4%. Further information on

how the Group is seeking to promote diversity can be found on

page 68 of the Strategic Report.

Ethnic diversity

The Committee is pleased to report that the Company continues

to meet the recommendation from the Parker Review that there

should be at least one Director of colour on the Board by 2021.

During the period the Committee agreed to work with

Empowering People of Colour (EPOC) – an organisation founded

by the Group’s Remuneration Committee Chair Moni Mannings

OBE. The aim of EPOC is to address the lack of diversity on

the UK’s private, public and not for profit Boards. As part of

this HL has selected an EPOC fellow from within its colleague

population to join a third party board. HL agreed to use EPOC’s

Board fellowship programme to search for an EPOC fellow to join

the HL Board for a period of circa 12 months and is considering

the appropriate time to select an EPOC fellow. The aim being

that individuals gain a better understanding of how Boards

operate, develop their skills, experience and networks and see if

a Non-Executive career is something they would wish to pursue.

For more information about the Group’s approach to ethnic

diversity more widely please see the Responsible employer

section on page 38.

18%

Governance and

other (including

NED only sessions)

34%

Recruitment

Talent,

leadership,

succession,

diversity

& inclusion

Board composition

and effectiveness

Overview of the Committee’s activities

in the year to 30 June 2024

Nom report

116

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Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

NOMINATION & GOVERNANCE COMMITTEE REPORT

GOVERNANCE SUPPORTING GROWTH CONTINUED

Reporting on gender, identity or sex

Number

of board

members

Percentage of

the board

Number

of senior

positions on

the board

(CEO, CFO, SID

and Chair)

Number in

executive

management

Percentage

of executive

management

Men 5 50% 1 6 60%

Women 5 50% 3 4 40%

Not specified/prefer not to say 0 0% 0 0 0%

Reporting on ethnic background

Number

of board

members

Percentage of

the board

Number

of senior

positions on

the board

(CEO, CFO, SID

and Chair)

Number in

executive

management

Percentage

of executive

management

White British or other White (including

minority-white groups)

8 80% 4 8 80%

Mixed/Multiple Ethnic Groups 0 0% 0 0 0%

Asian/Asian British 1 10% 0 1 10%

Black/African/Caribbean/Black British 0 0% 0 0 0%

Other ethnic group, including Arab 0 0% 0 0 0%

Not specified/prefer not to say 1 10% 0 1 10%

Committee priorities for 2024/25

Looking ahead to the next financial year, it is anticipated that

the Committee will focus in particular on:

բ Completing the current round on Non-Executive recruitment

to further develop resilience and flexibility within

that population.

բ Recognising the change there has been within the ELT

working with members to further develop succession

planning and talent management with a focus on diversity

and developing pipelines across the organisation.

բ Further developing the role of the Committee with regards

to governance elements.

բ Completing and overseeing the implementation of

recommendations from the externally led BER 2024.

Alison Platt

Chair of the Nomination & Governance Committee

14 August 2024

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Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

RISK COMMITTEE REPORT

Strong risk management is

essential in supporting the

firm achieve its strategic aims

Andrea Blance

Chair of the Risk Committee

Dear Shareholder

As Chair of the Risk Committee, I am pleased to present the

Committee’s report on the activities undertaken in the year

under review.

The Group’s approach to risk management and how it evaluates

and manages the principal risks and uncertainties the Group

faces are set out on pages 51 to 58.

Role of the Risk Committee

The Board is responsible for the Group’s risk management

and strategy, and for determining an appropriate risk appetite.

The Committee ensures that risk management is properly

considered in Board decisions and provides oversight of risk

within the Group. The Committee advises the Board on changes

to the Group’s risk profile and risk appetite and monitors the

effectiveness of the Group’s risk management framework.

The Committee plays a key role in overseeing the management

of capital adequacy and liquidity through the Internal Capital

Adequacy and Risk Assessment (ICARA) which includes

ensuring HL has sufficient capital for its future growth strategy.

Continued enhancements to the Group’s risk maturity have been

reviewed by the Committee who have scrutinised the Group’s

risk profile in relation to solvency, liquidity, operational, conduct

and reputational risks.

The Committee has continued to keep under review the Group’s

strategy. Regular updates on mobilisation priorities have been

received to ensure that the activities supporting the delivery

and execution of the strategy are adequately managed and

prioritised across other business as usual activities in order

to support good client outcomes.

The Committee reviews a report from the Group Chief Risk

Officer (GCRO) at each meeting which includes key themes

impacting the risk profile and regulatory change risks that could

impact the Group. It also covers the output of risk assurance

activities and specific areas of financial and non-financial risk

including regulatory risk and client outcomes.

The detailed responsibilities of the Committee are available

on the Group’s website.

The Committee works closely with the Audit Committee

on risk and control matters and both Committee Chairs are

members of the other Committee to ensure a co-ordinated

approach. The operation of effective key controls for assessing

and managing the Group’s key risks is delegated to the Audit

and Risk Committees.

Composition and meeting attendance

As at the date of this report (14 August 2024), the members

of the Committee are Andrea Blance (Chair), Penny James, Moni

Mannings, Michael Morley, Darren Pope and John Troiano, each

of whom are independent Non-Executive Directors. With the

exception of Michael Morley, who has been a member since

his appointment in August 2023, all those listed have been

members throughout the period under review. Dan Olley was

a member of the Committee until his appointment as CEO

on 7 August 2023 and Roger Perkin was a member until he

stepped down from the Board on 8 December 2023.

Ongoing training is provided to assist Committee members in

performing their duties. This year this included briefing sessions

on wind down planning, complex products and vulnerable clients.

The Committee met six times in the period under review.

The attendance of members is set out in the table on page 67.

Other individuals attend Committee meetings at the request

of the Committee Chair.

DRIVE FOR CONTINUOUS

IMPROVEMENT

11%

Governance

and other

12%

Consumer

Duty

40%

Risk exposures

and reporting

ICARA

28%

Risk maturity,

management and

framework

Overview of the Committee’s activities

in the year to 30 June 2024

Risk committee

118

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Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

RISK COMMITTEE REPORT

DRIVE FOR CONTINUOUS IMPROVEMENT CONTINUED

Areas of focus during 2023/2024

Consumer Duty

բ To support the delivery of good client outcomes, regular

updates on embedding activities related to the Consumer

Duty were reviewed.

բ Progress of the embedding plan and delivery of key

elements, including ongoing monitoring frameworks, were

monitored to ensure all aspects of the regulations had been

considered prior to completion of the annual assessment

by 31 July 2024. This included oversight of the ongoing

development of data to ensure monitoring and assurance

is in place.

Operational resilience

բ In its role overseeing operational resilience, the Committee

scrutinised the completeness of the Operational Risk Self-

Assessment, including Important Business Service coverage

and thresholds as well as management plans to address

outstanding actions, prior to recommending this for approval

by the Board.

Information Security, Data and fraud risk

բ To provide visibility of risk exposure and activities underway

to address and mitigate risks, a deep dive review of the data

risk environment was carried out. This covered the regulatory

compliance position, including GDPR.

բ The update on cyber security and the cyber risk control

environment included a specific focus on the risk

management approach to Artificial Intelligence.

բ Regular updates on enhancements made within the Group’s

financial crime framework and controls were received,

including a new anti-money laundering (AML) screening tool

which will further aid the detection and prevention of fraud.

բ The annual report from the Money Laundering Reporting

Officer (MLRO) took into account the FCA’s findings from its

recent assessment of compliance with AML regulations and

was subsequently approved by the Board.

Risk assessment of strategy

բ The Committee continued to oversee any risks associated

with the strategy through second line assessments of

mobilisation and prioritisation activities and the risk profile

associated with any change execution risks.

բ Projects to address regulatory requirements, including those

requiring technology enhancements, were reviewed and the

GCRO provided updates on change management progress.

Committee activities during the period under review

Risk management oversight

բ Reviewed and challenged the risk appetite statements in

support of consistent risk-informed decision-making aligned

with HL’s strategic aims.

բ Received regular updates on the status of the Group’s risk

profile supported by reference to the approved risk appetite,

reviews undertaken of risk and compliance events and the

status of control effectiveness and remediation activities.

բ Reviewed and challenged reporting for evidence of the

continued evolution of risk management capabilities in the

first line and monitored the response of management to

issues identified, including root cause analysis.

բ Continued to encourage the Group’s Risk function to further

focus on oversight through the increased transfer of risk

management activities to the first line operational teams.

բ Received and challenged an assessment of the Group’s

emerging risks and the principal risks and uncertainties the

Group faces as set out on pages 56 to 58.

բ Reviewed and monitored progress of the second line

assurance plan and oversaw the ongoing prioritisation of risk

management activity across the Group.

բ Received reports from the Compliance Monitoring function on

the effectiveness of measures designed to ensure compliance

with the Group’s regulatory risk and control framework.

բ Oversaw the activity of the Compliance function which

ensures adequate oversight of the regulatory obligations and

compliance with them. The adequacy and effectiveness of

the function was confirmed as part of the annual review.

բ Received regular updates from the GCRO on the resource

capacity and capability in the Risk function.

բ Reviewed a summary of the GCRO’s paper to the

Remuneration Committee relating to risk events or issues

including compliance and audit findings that impacted, or

could have impacted, the Group or clients and which were

taken into account when determining Executive remuneration.

ICARA

բ As part of ensuring HL has sufficient capital for its growth

strategy, the Committee kept the ICARA under periodic

review via quarterly updates.

բ The ICARA results in October 2023 were recommended

to the Board for approval, following review and challenge

to ensure they were proportionate to the nature, scale and

complexity of HL. The review covered the key assumptions

and methodologies used to assess the material risks of harm

to ensure the results continued to reflect the risk profile of

the Group. The Committee oversaw the scenarios used such

as regulatory compliance, technology and severe market

movements to validate the results and also reviewed the

annual regulatory disclosures.

119

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Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

RISK COMMITTEE REPORT

DRIVE FOR CONTINUOUS IMPROVEMENT CONTINUED

Operational risk

բ The Committee has focused on change management and the

action plans in place to reduce operational risk through the

programmes being prioritised as part of the transformation.

բ A joint meeting was held with the Audit Committee to

oversee progress against management actions identified

by second line and Internal Audit reviews.

բ The assurance reviews carried out by the newly formed

Model Risk team were also reviewed to oversee any risks

resulting from using insufficiently accurate models to

make decisions.

Risk maturity

բ The Committee oversaw the implementation of a Group Risk

Maturity Assessment Framework as part of the continued

enhancement of the Group’s risk maturity, aligned to the

scale and complexity of a financial services organisation

the size of HL.

բ The Group Risk and Compliance tool continues to provide

a central system of record for key risk data including risk

events and issues, which provides greater insights on

risk management.

Risk management and internal controls

բ In order to monitor and maintain the Group’s internal

controls systems on behalf of the Board, the Audit and Risk

Committees carried out an annual review of the adequacy

and effectiveness of the risk management systems and

the internal control environment which included key

financial, operational and compliance controls and the

risk management framework.

բ The Committee reviewed the disclosures and statements

in the Report and Financial Statements relating to

risk management prior to review and approval by

the Audit Committee.

բ The Committee also reviewed the risk self-assessment

process run in accordance with the Director’s risk attestation

process which provided assurance by the CEO and GCRO

of HL’s adherence to the requirement to maintain sound risk

management and internal control systems.

Committee performance

բ In line with its terms of reference, the Committee is required

to undertake a review of its performance on an annual basis

to ensure it is operating effectively.

բ The review was undertaken in April and this year included

the completion of an effectiveness questionnaire by

the members.

բ The review confirmed that activities during the period had

been in line with the Committee’s remit. Minor amendments

to the Terms of Reference, which included the Committee’s

role in overseeing and challenging the design and

execution of stress and scenario testing and reviewing

and recommending the annual self-assessment of client

outcomes, were approved by the Board.

Committee priorities for 2024/25

Looking ahead to the next financial year, it is anticipated that

the Committee’s focus in particular will be to:

բ Ensure the Group Risk Maturity Framework enhancements

focus on Risk Maturity elaboration, finalisation and

embedding of risk appetite measures and monitoring and

escalation processes;

բ Ensure actions taken in relation to the implementation of

the Consumer Duty regulations are embedded and ongoing

assurance is in place;

բ Continue to oversee change execution risk whilst legacy

systems are transformed as part of HL’s strategy; and

բ Oversee the further development of the emerging risk profile.

Andrea Blance

Chair of the Risk Committee

14 August 2024

120

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Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

DIRECTORS’ REPORT

The Directors present their report on the affairs of the Group,

together with the audited consolidated financial statements for

the year ended 30 June 2024.

The Company is the holding company for the Group. The

Group’s regulated operating subsidiaries carry out its business

of providing financial products and services, principally to

retail clients. The Group operates predominantly in the United

Kingdom, with one operating subsidiary (HL Tech) located

in Poland that provides IT development services to the rest

of the Group.

The Directors’ Report for the period under review comprises

pages 120 to 123 of the Report and Financial Statements,

as well as other sections incorporated by reference.

As permitted by legislation, certain information required to

be included in the Directors’ Report has instead been included

in the Strategic Report, on the basis that the Board consider

those matters to be of strategic importance. Commentary on

the development and performance of the Group’s business,

including in the field of research and development, and an

indication of likely future developments can be found on pages

1 to 30 of the Strategic Report. Disclosures relating to the

Group’s greenhouse gas emissions, energy consumption and

the measures being taken to increase energy efficiency can

be found on pages 43 to 50 of the Strategic Report.

Details of how the Group engages with its key stakeholders,

including its shareholders, can be found on pages 22 to 23

of the Strategic Report and on pages 69 to 70 of the Corporate

Governance Report. Details of how the interests of stakeholders

are considered in the Board’s decision making can be found

in the Section 172 Statement on pages 124 to 126.

The Strategic Report and the Directors’ Report together

form the Management Report for the purposes of DTR 4.1.8R.

For the purposes of DTR 7.2.1R:

բ A statement as to the Company’s compliance with the Code

and details of where the Code is publicly available can be

found in the Chair’s Introduction to Corporate Governance

on page 61;

բ A description of the main features of the Group’s internal

control and risk management systems in relation to the

financial reporting process can be found on pages 79 to 80;

բ Information regarding significant shareholders, special rights

regarding control of the Company, restrictions on voting

rights, the appointment and replacement of Directors and

changes to the Company’s articles of association, and the

powers of the Directors can be found on pages 120 to 122;

բ A description of the composition and operation of the Group’s

corporate governance framework can be found on pages 70

to 71 and

բ A description of the Group’s Diversity and Inclusion Policy,

its objectives, how it has been implemented and the results

in the period under review can be found on pages 38 to 42

and 115 to 116.

Information to be disclosed under LR 9.8.4R

Listing Rule 9.8.4R requires listed companies to include in

their annual financial report all information required under

Listing Rule 9.8.4R in a single identifiable section, or otherwise

in a cross reference table indicating where that information

is set out. The following cross reference table sets out where

the relevant disclosures can be found in the Report and

Financial Statements.

Listing rule Disclosure Page reference

LR 9.8.4R (1)

to (11)

Not applicable Not applicable

LR 9.8.4R (12) Current year

dividend waiver

agreements

Note 3.2 to consolidated

financial statements on

page 154

LR 9.8.4R (13) Future dividend

waiver

agreements

Note 3.2 to consolidated

financial statements on

page 154

LR 9.8.4R (14) Information

regarding

controlling

shareholder

The Company does not

have a Controlling

Shareholder. Details of the

ongoing relationship with

the Company’s former

Controlling Shareholder

can be found under the

heading Shareholder

Agreement on page 121

Share capital structure

The Company’s share capital consists of a single class of

ordinary shares of 0.4p each. As at 30 June 2024 and the

date of this report, there were 474,318,625 ordinary shares in

issue, each of which is fully paid up, amounting to an aggregate

nominal share capital of £1,897,274.50. Each ordinary share is

listed on the Official List maintained by the FCA and admitted

to trading on the Main Market of the London Stock Exchange.

Further details of the Company’s share capital can be found in

note 3.1 to the consolidated financial statements on page 154.

There were no changes to the Company’s share capital during

the period under review.

Rights attaching to shares and restrictions on transfer

The ordinary shares have attached to them full voting, dividend

and capital distribution rights, and rank pari passu in all respects.

Save for deadlines for voting by proxy, there are no restrictions

on voting rights attaching to, or on the transfer of, the

Company’s ordinary shares. Full details regarding the exercise

of voting rights at the 2024 AGM, whether in person or by

proxy, will be set out in the Notice of AGM. To be valid, the

appointment of a proxy to vote at a general meeting must be

received not less than 48 hours before the time of the meeting.

The Company is not aware of any agreements between the

holders of ordinary shares that may restrict their transfer or

the voting rights attaching to them.

None of the Company’s ordinary shares carry any special rights

regarding control of the Company.

Authority to allot or buy back shares

The Company was granted authority at the 2023 AGM to

purchase in the market its own shares up to an aggregate

nominal value of 10% of its issued ordinary share capital.

No shares were purchased under this authority in the year

to 30 June 2024 and up to the date of this report. This

authority expires at the end of the 2024 AGM, at which a

special resolution will be proposed for its renewal. This is

a standard authority that the Directors have no present

intention of exercising.

The Directors were granted authority at the 2023 AGM to

allot relevant securities up to an aggregate nominal amount

of £632,424.83, representing approximately one third of the

121

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Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

DIRECTORS’ REPORT

CONTINUED

Company’s issued ordinary share capital. No shares were

allotted under this authority in the year to 30 June 2024 and up

to the date of this report. This authority expires at the end of

the 2024 AGM, at which an ordinary resolution will be proposed

for its renewal. This is a standard authority that the Directors

have no present intention of exercising.

Shares held in trust for employee share schemes

Hargreaves Lansdown EBT Trustees Limited (the EBT Trustee)

holds ordinary shares in the Company in trust under the

terms of the Hargreaves Lansdown Employee Benefit Trust

(the EBT) to satisfy the exercise of options granted to the

Group’s employees under its approved and unapproved share

option schemes. Under the rules of the EBT, the EBT Trustee

has discretion as to the exercise of voting rights attaching

to ordinary shares held within the EBT. As at 30 June 2024,

the EBT Trustee held 163,348 ordinary shares, equating

to approximately 0.03% of the Company’s issued ordinary

share capital.

Hargreaves Lansdown Trustee Company Limited (the SIP

Trustee) holds ordinary shares in the Company in trust under

the terms of the Hargreaves Lansdown plc Share Incentive

Plan (the SIP) to satisfy the exercise of options granted to the

Group’s employees under the SIP. Save where the Company

notifies it that such waiver does not apply, the SIP Trustee

must refrain from exercising the voting rights attaching to

ordinary shares held in the SIP trust that have been allocated

to employees. The SIP Trustee has no express power under the

terms of the SIP to exercise voting rights attaching to ordinary

shares held in the SIP trust that have not been allocated to

employees. As at 30 June 2024, the SIP Trustee held 20,725

ordinary shares, equating to approximately 0.004% of the

Company’s issued ordinary share capital.

Substantial shareholdings

Notifications received by the Company in accordance with

DTR 5 are published on a Regulatory Information Service and

on the Company’s website. As at 30 June 2024 the following

shareholders have notified the Company in accordance with

DTR 5 of their interest in 3% or more of the Company’s issued

share capital:

Name

Ordinary

shares % holding

Peter Hargreaves 93,838,474 19.78%

Lindsell Train Limited 56,874,459 11.99%

Stephen Lansdown 27,087,419 5.71%

Blackrock, Inc* 27,082,571 5.71%

Baillie Gifford 23,517,973 4.96%

* On 8 August 2024, the Company received a notification from BlackRock, Inc. in

accordance with DTR 5 that it held voting rights in respect of 27,056,870 ordinary

shares, equal to 5.70% of the Company’s total voting rights. In the period between

30 June 2024 and the date of this report, the Company received no notifications

pursuant to DTR 5.

Shareholder Agreement

The Company announced on 7 February 2020 that Peter

Hargreaves had reduced his shareholding to 24.35%

and therefore ceased to be a controlling shareholder of

the Company. Peter Hargreaves has since reduced his

shareholding further and now holds 19.78%.

In October 2020, the Board announced that in order to reflect

Peter Hargreaves’ continuing interest in the Company whilst

respecting the strong independent governance principles of

the Board, the Company had agreed with Peter Hargreaves to

enter into a new shareholder agreement (the Agreement) to

govern their ongoing relationship. Pursuant to the Agreement,

Peter Hargreaves is entitled to nominate one Non-Independent,

Non-Executive Director for appointment to the Board, subject

to the applicable regulatory and governance framework that is

observed by the Company. Peter Hargreaves exercised this right

and Adrian Collins was appointed to the Board on 2 November

2020. This Agreement and nomination right shall remain in place

for so long as Peter Hargreaves and his Associates’ (as such

term is defined in the Listing Rules) control or are entitled to

control the exercise of at least 10 per cent of the Company’s

voting rights.

The Agreement intends to ensure that any transactions or

arrangements with him are conducted at arm’s length and

on commercial terms, and that neither he nor his associates

would prevent the Company complying with its obligations

under the Listing Rules or propose or procure a shareholder

resolution intended to circumvent the proper application of

the Listing Rules. In February 2023, the Company shared

protocols for interactions with Peter Hargreaves and also with

his shareholder representative to codify relevant obligations

of each party under the shareholder agreement, relevant

legislation and the Code to ensure a common understanding

of how interactions will take place.

Dividends

The Board recommends a final ordinary dividend of 30.0

pence per ordinary share to be paid in respect of the period

ending 30 June 2024. Subject to shareholder approval at

the 2024 AGM, it is proposed that this ordinary dividend is

paid on 1 November 2024 to all shareholders on the register

at close of business on 4 October 2024.

For further information on the dividend see page 30 of the

Strategic Report.

Board of Directors

Powers of the Directors

The Company’s articles of association (the Articles) set out the

powers of the Directors. Subject to company law, the Articles

and any directions given by special resolution of the Company,

the Directors have been granted authority to exercise all the

powers of the Company.

The Articles may only be amended by special resolution

at a general meeting of the Company’s shareholders.

Appointment and replacement of Directors

The appointment and replacement of Directors is governed

by the Articles, the Code and the Companies Act 2006 and

related legislation.

Under the Articles, Directors may be appointed, either to fill

a vacancy or as an addition to the existing Board, by ordinary

resolution of the Company or by resolution of the Board.

If appointed by the Board, a Director must retire and, if willing

to act, seek election at the next AGM following appointment.

In addition, the Articles require all Directors to retire at each

AGM and, if willing to do so, offer themselves for re-election.

This aligns to the requirements of provision 18 of the Code.

Further details can be found on page 69 of the Corporate

Governance Report.

122

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

DIRECTORS’ REPORT

CONTINUED

In addition to the powers set out in the Companies Act 2006,

the Articles provide for the removal of a Director before the

expiration of their period of office by ordinary resolution

of the Company.

The Board

The names of the Directors of the Company as at the date

of this report, along with their biographies, are set out on

pages 62 to 64.

Appointments to and departures from the Board during the

period under review are set out in the table below.

Name Role

Date of

appointment/departure

Michael Morley Independent

Non-Executive

Director

Appointed

1 August 2023

Chris Hill CEO Resigned

7 August 2023

Dan Olley CEO Appointed

7 August 2023

Roger Perkin Independent

Non-Executive

Director

Resigned

8 December 2023

Deanna

Oppenheimer

Independent

Non-Executive

Director

Resigned

8 December 2023

Alison Platt Independent

Non-Executive

Director

Appointed 6 February

2024

Directors’ interests

Details of the Directors’ interests in the Company’s ordinary

shares can be found on pages 102 to 108 of the Annual Report

on Remuneration.

During the period under review, no Director had any material

interest in a contract to which the Company or any of its

subsidiary undertakings was a party (other than their own

service contract) that required disclosure pursuant to the

Companies Act 2006.

Directors’ indemnities

As permitted by the Articles, the Directors have the benefit

of an indemnity which is a qualifying third-party indemnity

provision as defined by Section 234 of the Companies Act

2006. The indemnity was in place throughout the period under

review and remains in place as at the date of this report.

The Company also maintains Directors’ and Officers’ liability

insurance cover to protect the Directors from loss resulting from

claims against them in relation to the discharge of their duties.

This cover was in place throughout the period under review

and remains in place as at the date of this report.

Compensation for loss of office

There are no agreements in place between the Company and

its Directors or employees for compensation for loss of office

or employment as a result of a takeover bid.

Financial instruments and financial risk management

Details of the Group’s financial risk management policies

and objectives in relation to the use of financial instruments,

and its exposure to market, liquidity and credit risk, can be

found in note 5.7 to the consolidated financial statements

on pages 160 to 165.

Change of control

The Company’s RCF contains a statement that it will fall away on

a change of control. Other than the RCF, there are no significant

agreements to which any member of the Group is a party that

take effect, alter or terminate upon a change of control of the

Company following a takeover bid.

Employee engagement and involvement

The Group is committed to engaging and communicating

with colleagues to ensure they understand the Group’s purpose,

vision and priorities and how they each play their part in the

development of its business. Information on action taken to

ensure colleagues are provided with information on matters

that concern them and to promote awareness of the factors

affecting the Group’s performance can be found on page 42

of the Strategic Report. Details of how the Group engages

with colleagues and how their interests are considered in

decision making can be found on pages 23 and 42 of the

Strategic Report and in the Group’s Section 172 Statement

on pages 124 to 126.

Further details of how we encourage colleague involvement

in the Group’s performance, including by way of participation

in share schemes, can be found on page 41 of the

Strategic Report.

Details of the Group’s policies for the recruitment, continuing

employment and career development of disabled persons

can be found on page 38 of the Strategic Report.

Post-balance sheet events

Details of important events affecting the Group that have

occurred since the end of the period under review can be found

in note 5.5 to the consolidated financial statements on page 159.

Political donations

The Group did not make any political donations or contributions

or incur any political expenditure during the period under review.

Environment and climate

Climate related financial disclosures including SECR can be

found in the Strategic Report on pages 43 to 50.

Annual General Meeting

The Board looks forward to welcoming shareholders to the

Company’s AGM which will be held later this year with details

available at www.hl.co.uk/investor-relations/agm in due course.

Further information, along with details of all resolutions to be

proposed to the Company’s shareholders and how to vote, will

be set out in the Notice of AGM that will be circulated ahead

of the meeting.

Electronic communications and dividend payments

Shareholder communications are only sent in paper format

to shareholders who have elected to receive documents

in this way. This approach enables the Company to reduce

printing and distribution costs and the impact of the documents

on the environment. Shareholders who wish to receive

email notification instead of paper copies can register

online at www.shareview.co.uk.

123

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Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

DIRECTORS’ REPORT

CONTINUED

Shareholders can also request that dividends are paid directly

into their bank or building society account via Shareview. This

saves time and is more secure than receiving dividends by

cheque, which could arrive late or be lost in the post.

Going concern

In adopting the going concern basis for preparing the financial

statements, the Directors have considered the Group’s business

activities, together with the factors likely to affect its future

development, performance and position, including current

market conditions, the increase in inflation and the associated

cost-of-living crisis. This includes the Group’s principal risks and

uncertainties, details of which can be found in the Strategic

Report. The Operating and Financial Review on pages 24 to 30

of the Strategic Report describes the Group’s robust balance

sheet, managed to internal risk appetite and regulatory capital

limits, and a business with a high conversion of operating profit

to cash and a strong net cash position.

Having regard to the Company and Group’s financial, liquidity

and capital position, the Board has concluded that it remains

appropriate to adopt the going concern basis of accounting in

preparing the Company and Group’s financial statements.

Long-term viability

In accordance with Provision 31 of the Code, the Directors

have assessed the prospects of the Group over a longer period

than the 12 months required by the going concern provision.

Details of this assessment can be found on page 55 of the

Strategic Report.

Disclosure of information to external auditor

Each of the persons who are Directors at the time when this

report is approved confirms that:

բ So far as they are aware, there is no relevant audit

information of which the Company’s external auditor

is unaware; and

բ They have taken all the steps that they ought to have taken

as a Director to make themselves aware of any relevant audit

information and to establish that the Company’s external

auditor is aware of that information.

This confirmation is given and should be interpreted in

accordance with Section 418 of the Companies Act 2006.

Approved by and signed by order of the Board.

Claire Chapman

Group Company Secretary

14 August 2024

124

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Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

SECTION 172 STATEMENT

In their discussions and decisions during FY24, the Directors

have acted in the way that they consider, in good faith, would

be most likely to promote the success of the Company for the

benefit of its stakeholders as a whole and the matters set out in

sub-sections 172(1)(a)–(f) of the Companies Act 2006, including

as below. Aligned with exercising their duties to promote the

success of HL, the Directors also have regard to the interests

of HL’s stakeholders. These include shareholders, clients,

colleagues, suppliers, the environment and the communities

within which the Company operates, as well as the relative

impacts of any decision on each group within its stakeholder

base, acting fairly between members of the Company and

ensuring the Company’s ongoing reputation for a high standard

of business conduct.

The likely consequence of any decision in

the long term:

The Board is keenly aware of the relative impact its decisions

have on stakeholders. By understanding their duties and

stakeholder interests, the Directors make decisions that

promote long-term sustainable value for shareholders. The

Board integrates stakeholder interests and the Group’s

success into its strategy, values and policies, delegating

day-to-day decisions appropriately under its corporate

governance framework.

The Board, well-versed in HL’s business and operating

environment, recognises the importance of today’s decisions

on the Group’s future success. This year, strategic discussions

balanced current and future business needs while considering

HL’s risk profile. Regular updates on strategy implementation

and Group performance are received by the Board, which sets

the strategy, culture and values and oversees the Group’s

governance, risk management and internal controls to ensure

long-term success. HL’s strategy focuses on client proposition

development, and you can read more about this in the

Strategic Report.

Operating in a highly regulated environment, the Group

prioritises effective risk management to underpin the

effective delivery of its strategy. More on risk evaluation

and management, including principal and non-financial

risks, is available on pages 51 to 58 of the Strategic Report.

The interests of the Group’s employees:

The Board emphasises understanding the needs of Group

employees to foster a workplace where they can thrive,

ensuring long-term success. The HL Colleague Forum,

our workplace advisory panel, comprises representatives

chosen by colleagues and facilitates direct feedback on

matters of operational importance. This year, the Forum was

revamped to enhance forward-looking insights into proposed

initiatives and other relevant issues, with outcomes reported

to the Remuneration Committee (Nomination & Governance

Committee for FY25) and escalated to the Board as needed.

Monthly Colleague Updates led by the CEO and senior

management, both in-person and online, reinforce our purpose

and engage employees in dialogue, fostering a supportive

environment for questions and suggestions. Regular surveys

and departmental forums further gather colleague input, with

results shared with the Executive and Senior Leadership Teams,

as well as sharing across the Company with key themes brought

to the Board’s attention.

The HL platform is for everyone and we are committed

to inclusion and diversity. This year, initiatives coordinated

by the Group included:

բ Colleague networks represent different colleague groups

and look to embed an inclusive culture at HL. Each network

is sponsored by an Executive Leadership Team member who

supports each network in developing a deep awareness of

challenges and issues which they, alongside the Network,

can then amplify and support. Progress on inclusion and

diversity, along with the networks’ activities and focus areas,

is shared annually in the I&D update to the Nomination and

Governance Committee.

բ The award-winning Strive Internship programme,

launched by HL in 2020, which offers paid work experience

placements to Black, Asian and minority ethnic university

students across organisations in the West of England.

բ Speed networking events to connect female employees with

management and senior leaders from across the business to

aid their understanding of career progression opportunities.

բ A Line Manager Inclusion Series was launched with

six mandatory workshops delivered to all line managers,

continuing our commitment to focus on inclusion at the

core of HL’s culture.

You can read more about how we engage with colleagues and

the actions we have taken as a result of that engagement on

page 23 of the Strategic Report.

The need to foster business relationships with the

Group’s suppliers, clients and others:

The Board prioritises strong supplier relationships to ensure

effective and efficient client service over the long term. The

Group continues to enhance and embed its supplier manager

framework in line with business, market and regulatory

expectations. Soon, supplier dashboards will provide visibility

for contract managers on supplier performance, risk and

governance. Prompt payment is a priority and in the six

months to 30 June 2024 HLAM averaged 27.6 days and

HLFM 37.2 days.

Client interests are central to HL’s strategy and a key

consideration in everything HL does. Throughout HL’s 40 year

history, we have always been about offering great value to

clients as we make it easy for them to save and invest for a

better future. Demonstrating this, the Board approved a recent

new offer which saw all clients, new and existing, get £100

back on online trading charges.

Regular updates on client proposition and service metrics

inform Board and Executive Leadership Team decisions and the

Group’s innovation and strategy is driven by current and future

client needs. You can read more about how we engage with our

clients and the actions we have taken as a result on page 22 of

the Strategic Report.

The Group regularly engages with the FCA and the Board is

regularly briefed on regulatory developments and expectations

and the Group’s continued compliance with regulatory

obligations and the Risk, Audit and Remuneration Committees

receive detailed insights into specific areas such as CASS and

Consumer Duty. The Board considers the interests and views of

the FCA in its decision making and receives updates in relation

to specific matters such as operational resilience which are

of interest to the FCA.

The Group also engages in regular exchange with HM

Government and its various departments, trade bodies and

industry associations and local stakeholders such as MPs and

authorities, charity partners and community organisations.

125

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Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

SECTION 172 STATEMENT

CONTINUED

The impact of the Group’s operations on the community

and the environment:

The Board is conscious of the impact of the Group’s operations

on the community and environment and understands the

importance of being a good corporate citizen.

The Board monitors HL’s corporate social responsibility primarily

through reporting from senior management. The Board regularly

reviews the strategy to ensure that this remains appropriate and

in line with good practice, serving needs of the environment

generally and the communities that HL serves. Progress

updates are reported to the Board throughout the year. The

Board has oversight of the processes and procedures put in

place to improve ESG reporting including to meet the required

TCFD disclosures this year.

More information on HL’s ESG Strategy can be found on page 44.

The desirability of the Group maintaining a reputation

for high standards of business:

The Board is responsible for setting and monitoring the

culture, values and reputation of HL. Maintaining a reputation

for high standards of business conduct is an essential aspect

of this responsibility.

The Board receives regular updates including issues raised

through Speak Up, our confidential whistleblowing hotline,

and our internal controls and risk management framework.

Stakeholder engagement and metrics such as NPS scores

and supplier payment practices are important tools to ensure

HL’s good corporate reputation is maintained.

The Board supports the CEO in embedding a culture that

encourages HL colleagues to live our values and help

the Group deliver on its strategic objectives. The Group

encourages colleagues to ‘do the right thing’ to ensure that,

as a business, we act with integrity in all our dealings and

decisions with the aim of being clear, fair and transparent. You

can read more about HL’s purpose and values on page 10 of

the Strategic Report.

The Board also approves and oversees the Group’s adherence

to policies that promote high standards of conduct and receives

regular updates on the Group’s culture through KPIs that form

part of the CEO’s business performance update.

The need to act fairly as between the

Company’s shareholders:

The views and interests of shareholders are key considerations

when the Board determines the level of dividend payments and

when setting the Group’s strategy and business priorities.

HL’s Investor Relations team hold regular meetings with

investors, including seminars and presentations, and attend

investor conferences throughout the year to provide investors

the opportunity to discuss their views on matters including HL’s

financial and operational performance.

This year, presentations and question and answer sessions

were held alongside our results announcements which included

comprehensive information and updates regarding our business.

The Board offers regular engagement with its Founder

shareholders, with meetings taking place with the Chair, as well

as management. The Shareholder Agreement between Peter

Hargreaves and the Company executed in 2020 continues to

govern the key elements of the relationship, providing assurance

to other stakeholders that the relationship remains balanced

and independent. In particular, this allows the appointment

by Peter Hargreaves of a representative to the Company’s

Board. Adrian Collins has held the role since November 2020.

During 2023 protocols which provided additional clarity were

put in place which again provide assurance to the Company,

shareholders and to the regulator that codify operational

elements of the relationship arising under the Shareholder

Agreement and relevant companies and other legislation.

In accordance with its obligations, the Company has looked

to consult with all shareholders regarding any AGM resolution

which did not have support from shareholders of 80% or more

and is satisfied that any concerns that pertain to a voting

position have been appropriately discussed.

126

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Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

SECTION 172 STATEMENT

CONTINUED

What Happened Decision

Embedding of

Consumer Duty

The Board has further embedded Consumer Duty principles into its business decisions and priorities and the Group has made significant progress

in embedding these standards and remains compliant with its obligations.

Annually the Board receives a report considering whether HL is delivering good outcomes and highlighting areas where further work is required to

address any potential misalignments. Efforts to address any misalignments include strategic programmes and continuous improvements, especially

in the service transformation programme. Client surveys and third party research show HL ranks highest in nine out of ten client perceptions and its

service Net Promoter Score (NPS) improved to over 50 in May 2024, up from 38.5 in December 2023.

HL offers high-quality products well-aligned with the target market’s needs, including solutions for basic investors. These products provide value

and are expected to continue doing so. HL’s strategy, driven by client-focused values, aligns with Consumer Duty obligations and emphasises

a client-centric culture, with systems to oversee good outcomes.

HL has developed seven core frameworks, aligned with FCA rules and publications, closing critical gaps through product reviews and introducing

new client harm metrics and a Product and Client Outcomes Committee. HL understands the evolving needs of its clients and will address any

misalignments identified in its 3-year plan.

3 Year Plan

Following the appointment of Dan Olley as CEO and Alison Platt as Chair, the Board has taken the opportunity to review the Company’s 3-year plan

and process that supports preparation of that plan.

The Board recently approved a detailed 3-year plan which includes strategic investment and longer-term capital investment. Client outcomes

are an integral part of this strategy and aligned to Consumer Duty and the Board is focused on the Group continuing to give clients the

support needed. The proposed investment projects span all offerings including trading, financial advice and workplace solutions and include

technology improvements.

The Board recognises evolving client needs and the associated solutions and products which are designed for good client outcomes. The evolution

of HL’s strategy continues to be informed by stakeholders and regular engagement to understand clients’ evolving needs is reflected in the Board’s

decision-making processes.

HL’s value proposition focuses on products and propositions for every life stage of our clients, an industry leading service continuum and deeper

engagement with existing clients. From an operational standpoint, HL is considering scalability, efficiency and the value offered to clients and how

it can demonstrate this on a more personalised basis and the Board remains focused on protecting vulnerable clients.

For more information on our strategy and purpose, please see page 6 of the Strategic Report.

Decisions made during the year

The following are some of the decisions made by the Board this year which demonstrate how

section 172 matters have been taken into account as part of Board discussions and decision-making:

127

Hargreaves Lansdown

Report and Financial Statements 2024

Governance

Strategic report 1

Governance

Chair’s Introduction 60

Board of Directors 62

Corporate Governance Report 65

Audit Committee Report 74

Directors’ Remuneration Report 81

Nomination & Governance

Committee Report 112

Risk Committee Report 117

Directors’ Report 120

Section 172 Statement 124

Statement of Directors’ Responsibilities 127

Financial statements 128

Other information 173

STATEMENT OF DIRECTORS’ RESPONSIBILITIES IN RESPECT OF THE FINANCIAL STATEMENTS

The Directors are responsible for preparing the Report and

Financial Statements 2024 and the financial statements in

accordance with applicable law and regulation.

Company law requires the directors to prepare financial

statements for each financial year. Under that law the directors

have prepared the group financial statements in accordance

with UK-adopted international accounting standards and the

parent company financial statements in accordance with United

Kingdom Generally Accepted Accounting Practice (United

Kingdom Accounting Standards, comprising FRS 101 “Reduced

Disclosure Framework”, and applicable law).

Under company law, directors must not approve the financial

statements unless they are satisfied that they give a true and fair

view of the state of affairs of the Group and Parent Company and

of the profit or loss of the Group for that period. In preparing the

financial statements, the directors are required to:

բ select suitable accounting policies and then apply

them consistently;

բ state whether applicable UK-adopted international

accounting standards have been followed for the group

financial statements and United Kingdom Accounting

Standards, comprising FRS 101 have been followed

for the parent company financial statements, subject

to any material departures disclosed and explained

in the financial statements;

բ make judgements and accounting estimates that are

reasonable and prudent; and

բ prepare the financial statements on the going concern basis

unless it is inappropriate to presume that the Group and

Parent Company will continue in business.

The Directors are responsible for safeguarding the assets

of the group and parent company and hence for taking

reasonable steps for the prevention and detection of fraud

and other irregularities.

The Directors are also responsible for keeping adequate

accounting records that are sufficient to show and explain the

Group’s and Parent Company’s transactions and disclose with

reasonable accuracy at any time the financial position of the

Group and parent company and enable them to ensure that

the financial statements and the Directors’ Remuneration Report

comply with the Companies Act 2006.

The Directors are responsible for the maintenance and

integrity of the parent company’s website. Legislation in the

United Kingdom governing the preparation and dissemination

of financial statements may differ from legislation in

other jurisdictions.

Directors’ confirmations

Each of the Directors, whose names and functions are listed in

Board of Directors profiles on pages 62 to 64 confirm that, to

the best of their knowledge

բ the Group financial statements, which have been prepared

in accordance with UK-adopted international accounting

standards, give a true and fair view of the assets, liabilities,

financial position and profit of the Group;

բ the Parent Company financial statements, which have been

prepared in accordance with United Kingdom Accounting

Standards, comprising FRS 101, give a true and fair view

of the assets, liabilities and financial position of the Parent

Company; and

բ the Strategic Report includes a fair review of the

development and performance of the business and the

position of the Group and Parent Company, together with

a description of the principal risks and uncertainties that

it faces.

In the case of each Director in office at the date the Directors’

Report is approved:

բ so far as the Director is aware, there is no relevant audit

information of which the group’s and Parent Company’s

auditors are unaware; and

բ they have taken all the steps that they ought to have taken

as a Director in order to make themselves aware of any

relevant audit information and to establish that the Group’s

and Parent Company’s auditors are aware of that information.

Amy Stirling

Chief Financial Officer

14 August 2024

128

Hargreaves Lansdown

Report and Financial Statements 2024

Financial statements

FINANCIAL

STATEMENTS

Independent Auditors’ Report 129

Section 1: Results for the year 136

Section 2: Assets and liabilities 145

Section 3: Equity 153

Section 4: Consolidated statement

of cash flows 155

Section 5: Other notes 157

Section 6: Company financial statements 166

129

Hargreaves Lansdown

Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF HARGREAVES LANSDOWN PLC

Report on the audit of the financial statements

Opinion

In our opinion:

բ Hargreaves Lansdown plc’s group financial statements and parent company financial

statements (the “financial statements”) give a true and fair view of the state of the group’s and

of the parent company’s affairs as at 30 June 2024 and of the group’s profit and the group’s

cash flows for the year then ended;

բ the group financial statements have been properly prepared in accordance with UK-adopted

international accounting standards as applied in accordance with the provisions of the

Companies Act 2006;

բ the parent company financial statements have been properly prepared in accordance with

United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting

Standards, including FRS 101 “Reduced Disclosure Framework”, and applicable law); and

բ the financial statements have been prepared in accordance with the requirements of the

Companies Act 2006.

We have audited the financial statements, included within the Report and Financial Statements

2024 (the “Annual Report”), which comprise: the consolidated statement of financial position and

the parent company statement of financial position as at 30 June 2024; the consolidated income

statement, the consolidated statement of comprehensive income, the consolidated statement

of changes in equity, the consolidated statement of cash flows and the parent company

statement of changes in equity for the year then ended; and the notes to the financial statements,

comprising material accounting policy information and other explanatory information.

Our opinion is consistent with our reporting to the Audit Committee.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”)

and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’

responsibilities for the audit of the financial statements section of our report. We believe that the

audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remained independent of the group in accordance with the ethical requirements that are

relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical

Standard, as applicable to listed public interest entities, and we have fulfilled our other ethical

responsibilities in accordance with these requirements.

To the best of our knowledge and belief, we declare that non-audit services prohibited by the

FRC’s Ethical Standard were not provided.

Other than those disclosed in the Audit Committee report, we have provided no non-audit

services to the parent company or its controlled undertakings in the period under audit.

Material uncertainty related to going concern

In forming our opinion on the financial statements, which is not modified, we have considered

the adequacy of the disclosure made in note 5.1 to the financial statements concerning the

group’s and the parent company’s ability to continue as a going concern. As explained in note 5.1,

on 9 August 2024 the Board of Hargreaves Lansdown plc received a firm offer for Hargreaves

Lansdown plc from a consortium comprising CVC Advisers Limited (‘CVC’), Nordic Capital

XI Delta, SCSP (acting through its general partner Nordic Capital XI Delta GP SARL) (‘Nordic

Capital’), and Platinum Ivy B 2018 RSC Limited (‘Platinum Ivy’), a wholly-owned subsidiary of Abu

Dhabi Investment Authority (‘ADIA’) managed by the Private Equities investment department of

ADIA (together, the ‘Consortium’) which the Board has announced will be recommended to the

shareholders for approval. As a result the Directors do not have certainty on the future plans for

the business, including whether the offer will be approved by the shareholders and the FCA,

the potential timing for transfer to the potential new owners or their future plans, including any

financing arrangements. These conditions, along with the other matters explained in note 5.1

to the financial statements, indicate the existence of a material uncertainty which may cast

significant doubt about the group’s and the parent company’s ability to continue as a going

concern. The financial statements do not include the adjustments that would result if the group

and the parent company were unable to continue as a going concern.

In auditing the financial statements, we have concluded that the directors’ use of the going

concern basis of accounting in the preparation of the financial statements is appropriate.

Our evaluation of the directors’ assessment of the group’s and the parent company’s ability to

continue to adopt the going concern basis of accounting included:

բ Obtaining, evaluating and challenging management’s going concern assessment (specifically

covering operational resilience, current and projected capital and liquidity positions, and

the appropriateness of downside scenarios) using our knowledge of the group’s business

performance and its regulatory capital and liquidity requirements;

բ Agreeing cash flow forecasts to the Board approved operating plan (which is used in

management’s assessment) and performing lookback testing over budgeted versus actual

results for the previous year to assess the historical accuracy of management’s forecasting;

բ Considering information obtained through review of regulatory correspondence, minutes of

meetings of the Board, Group Audit and Group Risk Committees, as well as publicly available

market information to identify any evidence that would contradict management’s assessment;

բ Substantiating the group and parent company liquid resources, and borrowing facilities; and

բ Reviewing of materials in relation to the offer from the Consortium, including the firm

offer received.

130

Hargreaves Lansdown

Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF HARGREAVES LANSDOWN PLC CONTINUED

In relation to the directors’ reporting on how they have applied the UK Corporate Governance

Code, other than the material uncertainty identified in note 5.1 to the financial statements,

we have nothing material to add or draw attention to in relation to the directors’ statement in

the financial statements about whether the directors considered it appropriate to adopt the

going concern basis of accounting, or in respect of the directors’ identification in the financial

statements of any other material uncertainties to the group’s and the parent company’s ability

to continue to do so over a period of at least twelve months from the date of approval of the

financial statements.

Our responsibilities and the responsibilities of the directors with respect to going concern are

described in the relevant sections of this report.

Our audit approach

Overview

Audit scope

բ The group financial statements comprise the consolidation of 19 individual components,

each of which represents a legal entity within the group, as well as group level

consolidation adjustments.

բ We assessed each component and considered the contribution it made to the group’s

performance in the year, whether it displayed any significant risk characteristics and/or

whether it contributed a significant amount to any individual financial statement line item.

բ The above assessment resulted in us identifying two financially significant components that

required audit procedures for the purpose of the audit of the consolidated financial statements.

բ The financially significant components are based in the UK and were audited by the PwC UK

audit team.

բ By performing audit procedures on these components, the consolidation adjustments and

by audit of specific balances in the components with large individual balances, we achieved

coverage greater than 65% of each material financial statement line item within the group’s

financial statements.

Key audit matters

բ Material uncertainty related to going concern (group and parent company)

բ Revenue Recognition (group)

բ Carrying value of investments in subsidiaries (parent company)

Materiality

բ Overall group materiality: £19,800,000 (2023: £20,139,000) based on 5% of consolidated profit

before tax.

բ Overall parent company materiality: £6,670,000 (2023: £3,375,000) based on 1% of total assets.

բ Performance materiality: £14,900,000 (2023: £15,100,000) (group) and £5,000,000

(2023: £2,500,000) (parent company).

The scope of our audit

As part of designing our audit, we determined materiality and assessed the risks of material

misstatement in the financial statements. In particular, we looked at where the directors made

subjective judgements, for example in respect of significant accounting estimates that involved

making assumptions and considering future events that are inherently uncertain.

Key audit matters

Key audit matters are those matters that, in the auditors’ professional judgement, were of most

significance in the audit of the financial statements of the current period and include the most

significant assessed risks of material misstatement (whether or not due to fraud) identified by

the auditors, including those which had the greatest effect on: the overall audit strategy; the

allocation of resources in the audit; and directing the efforts of the engagement team. These

matters, and any comments we make on the results of our procedures thereon, were addressed in

the context of our audit of the financial statements as a whole, and in forming our opinion thereon,

and we do not provide a separate opinion on these matters.

In addition to going concern, described in the Material uncertainty related to going concern

section above, we determined the matters described below to be the key audit matters to be

communicated in our report. This is not a complete list of all risks identified by our audit.

131

Hargreaves Lansdown

Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF HARGREAVES LANSDOWN PLC CONTINUED

The key audit matters below are consistent with last year.

Key audit matter How our audit addressed the key audit matter

Revenue recognition (group)

Revenue is material to the group and is an important

determinant of the group’s results. Revenue may be

misstated due to errors in system datasets, calculations

and/or manual processes, for example, arising from

incorrect securities’ prices or levels of assets held used

in such calculations and/or processes.

Further, there are incentive schemes in place for

Directors and staff which are in part based on the

group’s results, and therefore impacted by the reported

revenue amount. Where there are incentives based on

financial performance, there is an inherent risk of fraud

in revenue recognition in order to overstate revenue.

Our assessment in this regard in respect of each of the

group’s revenue streams concluded that the relevant

area of risk related to the posting of inappropriate

journal entries to increase reported revenue for

the group.

In order to address these areas, including the risk of fraud in revenue recognition, we evaluated the design and implementation of key

controls as well as performing the following procedures:

We tested relevant IT controls over the administration system, as well as the front end systems which capture and transmit customer

transactions to the administration system. We identified and tested relevant IT dependencies (for example the interface between the front

end systems and the administration system) in the revenue reporting process. We identified a number of exceptions from our testing of the

IT controls and therefore performed additional work to address these including consideration of mitigating controls, with no further issues

arising.

We tested relevant controls over the accuracy of relevant data in the administration system (for example over the recording of customer

holdings, and matching of transactions to third party records), with no exceptions being noted from this testing.

We tested samples of key data inputs held and used in the administration system for revenue calculation purposes to supporting

documentation, with no exceptions being noted from this testing.

We used our data analytics software to reperform the platform fees and stockbroking commission calculations, using source data extracted

from the administration system. We then compared our independent recalculations to the amounts reported.

We tested a risk-based sample of revenue related journals as part of our overall response to the risk of management override of controls.

With respect to the revenue recalculations, we noted differences which required further investigation and testing. We obtained further

evidence to address those, and we evaluated the residual differences. Based on the evidence obtained we did not consider the differences

to require adjustment.

For the gross interest received balance, which is non-system generated revenue; we have performed an independent manual recalculation

of the interest received from third party banks and performed sample-based testing over the inputs ( for example deposit amounts and

interest rates to external deposit confirmations) with no exceptions noted from this testing. Specifically regarding interest expense, we

have performed tests over the automated calculation including tests over of the system configuration and performed a recalculation of this

process to ensure the accuracy of the system calculation.

There were no issues noted in our testing of key data inputs and journals.

132

Hargreaves Lansdown

Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF HARGREAVES LANSDOWN PLC CONTINUED

Key audit matter How our audit addressed the key audit matter

Carrying value of investments in subsidiaries (parent company)

The carrying value of investments in subsidiaries is £108.7m as at 30 June 2024

(2023: £90.8m). The investments in subsidiaries are recorded at cost less any

provision for impairment.

Management is required by IAS 36 ‘Impairment of assets’ to perform an annual

review and consider if there are any impairment indicators following which

impairment reviews were performed for two subsidiaries (Hargreaves Lansdown

Savings Limited (“HLS”) and Hargreaves Lansdown Advisory Services Limited

(“HLAS”) whereby the recoverable amount of HLS was determined using a value-

in-use approach and the recoverable amount of HLAS was determined using a fair

value less cost to sell approach.

For HLS, the recoverable amount determined by management was in excess of the

current carrying value, and in excess of the historical cost of the investment (which

had been previously impaired). As such management recognised an impairment

reversal of £5m to increase the carrying value to the recoverable amount.

For HLAS, the recoverable amount determined by management was in excess

of the current carrying value (which had been previously impaired). As such

management recognised an impairment reversal of £3m to increase the carrying

value to the recoverable amount.

The determination of recoverable values requires judgement, and recognising

the changes in circumstances identified, the carrying value of investments in

subsidiaries was classified as a significant risk for the audit.

We evaluated the design and implementation of key controls as well as performing the following procedures:

For HLS, we agreed the cash flow forecasts used by management in the value-in-use calculations for the first

three years of the forecast period to approved business plans. We also assessed the key revenue and cost

assumptions within the business plans and subsequent period and corroborated those to external data where

available.

We evaluated the historical accuracy of cash flow forecasts, including a comparison of the current year actual

results with those forecast.

We obtained and understood management’s sensitivity calculations over the carrying value assessments, as

well as performing further sensitivity scenarios ourselves.

For HLAS, we agreed the revenue forecasts used by management in the fair value less costs to sell calculations

to financial information for the current year and to approved business plans for the three years of the forecast

period.

We have agreed revenues from future strategic initiatives to approved board plans and determined that their

inclusion is appropriate under IAS 36.

We evaluated the key assumptions made by management in determining the recoverable value and

corroborated those to external data where available. These included the forecast growth in assets under

management and revenues and multiples applied based on the identification of comparable companies.

Overall we are satisfied that there is sufficient evidence to support the key assumptions made by management

within the updated assessments and that these are compliant with IAS 36. We therefore concur with the

impairment reversals recognised for HLS and HLAS.

How we tailored the audit scope

We tailored the scope of our audit to ensure that we performed enough work to be able to give an

opinion on the financial statements as a whole, taking into account the structure of the group and the

parent company, the accounting processes and controls, and the industry in which they operate.

The group operates primarily in the UK, and has one Polish based subsidiary. There were

5 key operating subsidiaries during the year. We considered two legal entities to be financially

significant components, Hargreaves Lansdown Asset Management Limited and the parent

entity, Hargreaves Lansdown plc, for which we performed an audit of their complete financial

information. Together these two components represent 95% of the group’s consolidated profit

before tax (before considering the impact of intercompany eliminations) and 89% of the group’s

consolidated revenue. A component was considered to be financially significant if it contributed

more than 15% of consolidated profit before tax or otherwise met relevant risk or other criteria.

Specific audit procedures were also performed over consolidation adjustments, balances

that could be tested centrally which included share-based payment expenses, intercompany

transactions and balances, and material movements through the consolidated statement of

changes in equity. All of the audit work was performed by the group engagement team in the UK.

The impact of climate risk on our audit

In planning our audit, we considered the extent to which climate change is impacting the

group and how it impacted our risk assessment for the audit of the group’s financial statements.

In making these considerations we:

a) Enquired of management in respect of their own climate change risk assessment and obtained

their completed Climate-related risk questionnaire, including associated governance processes

and understood how these have been implemented.

b) Obtained the latest Task Force for Climate Related Financial Disclosures (“TCFD”) report

for the group and checked it for consistency with our knowledge of the group based on our

audit work.

c) Considered management’s risk assessment and the TCFD report in light of our knowledge

of the wider asset management and wealth management industries.

Our conclusion was that the impact of climate change does not give rise to a key audit matter for

the group and it did not impact our risk assessment for any material financial statement line item

or disclosure.

133

Hargreaves Lansdown

Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF HARGREAVES LANSDOWN PLC CONTINUED

Materiality

The scope of our audit was influenced by our application of materiality. We set certain quantitative

thresholds for materiality. These, together with qualitative considerations, helped us to determine

the scope of our audit and the nature, timing and extent of our audit procedures on the individual

financial statement line items and disclosures and in evaluating the effect of misstatements, both

individually and in aggregate on the financial statements as a whole.

Based on our professional judgement, we determined materiality for the financial statements

as a whole as follows:

Financial statements – group Financial statements – parent company

Overall

materiality

£19,800,000 (2023: £20,139,000). £6,670,000 (2023: £3,375,000).

How we

determined it

5% of consolidated profit before tax 1% of total assets

Rationale for

benchmark

applied

Based on the benchmarks used

in the Annual Report, profit before

tax is a key measure used by

the shareholders in assessing

the financial performance of the

group, and is a generally accepted

auditing benchmark. Our approach

is consistent with that used in the

prior year.

The parent company operates primarily

as a holding company for investments

in the group’s subsidiaries, with limited

other operating activities. Accordingly,

we consider that Total assets is an

appropriate benchmark for materiality.

Our approach is consistent with that

used in the prior year.

For each component in the scope of our group audit, we allocated a materiality that is less

than our overall group materiality. The range of materiality allocated across components was

£6,670,000 to £18,800,000. Certain components were audited to a local statutory audit materiality

that was also less than our overall group materiality.

We use performance materiality to reduce to an appropriately low level the probability that the

aggregate of uncorrected and undetected misstatements exceeds overall materiality. Specifically,

we use performance materiality in determining the scope of our audit and the nature and extent

of our testing of account balances, classes of transactions and disclosures, for example in

determining sample sizes. Our performance materiality was 75% (2023: 75%) of overall materiality,

amounting to £14,900,000 (2023: £15,100,000) for the group financial statements and £5,000,000

(2023: £2,500,000) for the parent company financial statements.

In determining the performance materiality, we considered a number of factors – the history

of misstatements, risk assessment and aggregation risk and the effectiveness of controls –

and concluded that an amount at the upper end of our normal range was appropriate.

We agreed with the Audit Committee that we would report to them misstatements identified

during our audit above £1,000,000 (group audit) (2023: £1,000,000) and £330,000 (parent

company audit) (2023: £168,000) as well as misstatements below those amounts that,

in our view, warranted reporting for qualitative reasons.

Reporting on other information

The other information comprises all of the information in the Annual Report other than the

financial statements and our auditors’ report thereon. The directors are responsible for the other

information. Our opinion on the financial statements does not cover the other information and,

accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly

stated in this report, any form of assurance thereon.

In connection with our audit of the financial statements, our responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent

with the financial statements or our knowledge obtained in the audit, or otherwise appears to be

materially misstated. If we identify an apparent material inconsistency or material misstatement,

we are required to perform procedures to conclude whether there is a material misstatement of

the financial statements or a material misstatement of the other information. If, based on the work

we have performed, we conclude that there is a material misstatement of this other information,

we are required to report that fact. We have nothing to report based on these responsibilities.

With respect to the Strategic report and Directors’ Report, we also considered whether the

disclosures required by the UK Companies Act 2006 have been included.

Based on our work undertaken in the course of the audit, the Companies Act 2006 requires

us also to report certain opinions and matters as described below.

Strategic report and Directors’ Report

In our opinion, based on the work undertaken in the course of the audit, the information given in

the Strategic report and Directors’ Report for the year ended 30 June 2024 is consistent with the

financial statements and has been prepared in accordance with applicable legal requirements.

In light of the knowledge and understanding of the group and parent company and their

environment obtained in the course of the audit, we did not identify any material misstatements

in the Strategic report and Directors’ Report.

Directors’ Remuneration

In our opinion, the part of the Directors’ Remuneration Report to be audited has been properly

prepared in accordance with the Companies Act 2006.

Corporate governance statement

The Listing Rules require us to review the directors’ statements in relation to going concern,

longer-term viability and that part of the corporate governance statement relating to the parent

company’s compliance with the provisions of the UK Corporate Governance Code specified for

our review. Our additional responsibilities with respect to the corporate governance statement

as other information are described in the Reporting on other information section of this report.

134

Hargreaves Lansdown

Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF HARGREAVES LANSDOWN PLC CONTINUED

Based on the work undertaken as part of our audit, we have concluded that each of the following

elements of the corporate governance statement, included within the Strategic Report and

Directors’ Report is materially consistent with the financial statements and our knowledge

obtained during the audit, and, except for the matters reported in the section headed ‘Material

uncertainty related to going concern’, we have nothing material to add or draw attention to

in relation to:

բ The directors’ confirmation that they have carried out a robust assessment of the emerging

and principal risks;

բ The disclosures in the Annual Report that describe those principal risks, what procedures

are in place to identify emerging risks and an explanation of how these are being managed

or mitigated;

բ The directors’ statement in the financial statements about whether they considered it

appropriate to adopt the going concern basis of accounting in preparing them, and their

identification of any material uncertainties to the group’s and parent company’s ability to

continue to do so over a period of at least twelve months from the date of approval of the

financial statements;

բ The directors’ explanation as to their assessment of the group’s and parent company’s

prospects, the period this assessment covers and why the period is appropriate; and

բ The directors’ statement as to whether they have a reasonable expectation that the parent

company will be able to continue in operation and meet its liabilities as they fall due over the

period of its assessment, including any related disclosures drawing attention to any necessary

qualifications or assumptions.

Our review of the directors’ statement regarding the longer-term viability of the group and parent

company was substantially less in scope than an audit and only consisted of making inquiries and

considering the directors’ process supporting their statement; checking that the statement is in

alignment with the relevant provisions of the UK Corporate Governance Code; and considering

whether the statement is consistent with the financial statements and our knowledge and

understanding of the group and parent company and their environment obtained in the course

of the audit.

In addition, based on the work undertaken as part of our audit, we have concluded that each

of the following elements of the corporate governance statement is materially consistent with

the financial statements and our knowledge obtained during the audit:

բ The directors’ statement that they consider the Annual Report, taken as a whole, is fair,

balanced and understandable, and provides the information necessary for the members to

assess the group’s and parent company’s position, performance, business model and strategy;

բ The section of the Annual Report that describes the review of effectiveness of risk

management and internal control systems; and

բ The section of the Annual Report describing the work of the Audit Committee.

We have nothing to report in respect of our responsibility to report when the directors’ statement

relating to the parent company’s compliance with the Code does not properly disclose a departure

from a relevant provision of the Code specified under the Listing Rules for review by the auditors.

Responsibilities for the financial statements and the audit

Responsibilities of the directors for the financial statements

As explained more fully in the Statement of Directors’ responsibilities, the directors are responsible

for the preparation of the financial statements in accordance with the applicable framework and

for being satisfied that they give a true and fair view. The directors are also responsible for such

internal control as they determine is necessary to enable the preparation of financial statements

that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group’s and

the parent company’s ability to continue as a going concern, disclosing, as applicable, matters

related to going concern and using the going concern basis of accounting unless the directors

either intend to liquidate the group or the parent company or to cease operations, or have no

realistic alternative but to do so.

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a

whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’

report that includes our opinion. Reasonable assurance is a high level of assurance, but is not

a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material

misstatement when it exists. Misstatements can arise from fraud or error and are considered

material if, individually or in the aggregate, they could reasonably be expected to influence

the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations.

We design procedures in line with our responsibilities, outlined above, to detect material

misstatements in respect of irregularities, including fraud. The extent to which our procedures

are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the group and industry, we identified that the principal risks

of non-compliance with laws and regulations related to breaches of UK regulatory principles,

such as those governed by the Financial Conduct Authority, and we considered the extent

to which non-compliance might have a material effect on the financial statements. We also

considered those laws and regulations that have a direct impact on the financial statements

such as Companies Act 2006. We evaluated management’s incentives and opportunities

for fraudulent manipulation of the financial statements (including the risk of override of

controls), and determined that the principal risks were related to bias in significant accounting

estimates, and posting inappropriate journal entries to increase reported revenue for the group.

Audit procedures performed by the engagement team included:

բ Discussions with the Audit Committee, individual directors, the Risk and Compliance functions,

Internal Audit and the parent company’s legal counsel, including consideration of known or

suspected instances of non-compliance with laws and regulation and fraud;

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Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

INDEPENDENT AUDITORS’ REPORT

TO THE MEMBERS OF HARGREAVES LANSDOWN PLC CONTINUED

բ Performing an assessment of the susceptibility of the financial statements to be materially

misstated from fraud and how fraud might occur;

բ Understanding and assessing management’s controls designed to prevent and detect

irregularities and the policies and procedures on fraud risks;

բ Reading the Audit Committee papers in which whistle blowing matters are reported and

considered the impact of these matters on the group’s compliance with laws and regulations;

բ Reading key correspondence with and making enquiries of the Financial Conduct Authority

in relation to compliance with laws and regulations;

բ Reviewing relevant meeting minutes including those of the Board, Risk and Audit Committees;

բ Reviewing data regarding customer complaints, litigation and claims, in so far as they related

to potential non-compliance with laws and regulations and fraud;

բ Identifying and testing journal entries, in particular any journal entries posted with unusual

account combinations increasing reported revenues of the group;

բ Critically assessing for bias in significant accounting estimates;

բ Reviewing the Report and Financial Statements 2024 disclosures and testing to supporting

documentation to assess compliance with applicable laws and regulations.

There are inherent limitations in the audit procedures described above. We are less likely to

become aware of instances of non-compliance with laws and regulations that are not closely

related to events and transactions reflected in the financial statements. Also, the risk of not

detecting a material misstatement due to fraud is higher than the risk of not detecting one

resulting from error, as fraud may involve deliberate concealment by, for example, forgery

or intentional misrepresentations, or through collusion.

Our audit testing might include testing complete populations of certain transactions and balances,

possibly using data auditing techniques. However, it typically involves selecting a limited number

of items for testing, rather than testing complete populations. We will often seek to target

particular items for testing based on their size or risk characteristics. In other cases, we will use

audit sampling to enable us to draw a conclusion about the population from which the sample

is selected.

A further description of our responsibilities for the audit of the financial statements is located on

the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our

auditors’ report.

Use of this report

This report, including the opinions, has been prepared for and only for the parent company’s

members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for

no other purpose. We do not, in giving these opinions, accept or assume responsibility for any

other purpose or to any other person to whom this report is shown or into whose hands it may

come save where expressly agreed by our prior consent in writing.

Other required reporting

Companies Act 2006 exception reporting

Under the Companies Act 2006 we are required to report to you if, in our opinion:

բ we have not obtained all the information and explanations we require for our audit; or

բ adequate accounting records have not been kept by the parent company, or returns adequate

for our audit have not been received from branches not visited by us; or

բ certain disclosures of directors’ remuneration specified by law are not made; or

բ the parent company financial statements and the part of the Directors’ Remuneration Report

to be audited are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.

Appointment

Following the recommendation of the Audit Committee, we were appointed by the members

on 25 October 2013 to audit the financial statements for the year ended 30 June 2014 and

subsequent financial periods. The period of total uninterrupted engagement is 11 years,

covering the years ended 30 June 2014 to 30 June 2024.

Other matter

The company is required by the Financial Conduct Authority Disclosure Guidance and

Transparency Rules to include these financial statements in an annual financial report prepared

under the structured digital format required by DTR 4.1.15R – 4.1.18R and filed on the National

Storage Mechanism of the Financial Conduct Authority. This auditors’ report provides no

assurance over whether the structured digital format annual financial report has been

prepared in accordance with those requirements.

Darren Meek (Senior Statutory Auditor)

for and on behalf of PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditors

London

14 August 2024

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Financial statements

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Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 1: RESULTS FOR THE YEAR

CONSOLIDATED INCOME STATEMENT

For the year ended 30 June 2024

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 30 June 2024

		Year ended	Year ended
		30 June 2024	30 June 2023
	Note	£m	£m
Revenue	1.1	76 4. 9	7 3 5.1
Operating costs	1.3	(398.2)	(350.7)
Operating profit		366 .7	384.4
Finance and other income	1.6	30.2	1 9.0
Finance costs	1.7	(0.6)	(0. 7)
Profit before tax		396 .3	402.7
Tax	1.8	(103 . 1)	(7 9.0)
Profit for the financial year		293.2	323.7
Attributable to:
Owners of the parent		293.2	32 3.8
Non-controlling interest		–	(0 . 1)
		293.2	323.7
Earnings per share
Basic earnings per share (pence)	1.9	6 1. 9	6 8.3
Diluted earnings per share (pence)	1.9	61. 7	68 .2

The results relate entirely to continuing operations.

	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
Profit for the financial year	293.2	323.7
Total comprehensive income for the financial year	293.2	323.7
Attributable to:
Owners of the parent	293.2	32 3.8
Non-controlling interest	–	(0. 1)
	293.2	323.7

The results relate entirely to continuing operations.

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Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 1: RESULTS FOR THE YEAR

NOTES TO THE GROUP FINANCIAL STATEMENTS

INCOME STATEMENT

1.1 Revenue

Revenue represents fees receivable from financial services provided to clients, net interest

income on client money and management fees charged to clients. It relates to services provided

in the UK and is stated net of value added tax.

Revenue is measured at the fair value of the consideration received or receivable and

represents amounts receivable for services provided in the normal course of business,

net of commission payable, discounts, VAT and other sales related taxes.

Ongoing revenue

The largest source of revenue for the Group encompasses ongoing revenue, which includes

platform fees, fund management fees, net interest income on client money and ongoing advice

charges and renewal commission. This is revenue predominantly earned over time.

Platform fees are received for the provision of custody and administration of products on

the HL platform and are charged monthly in arrears for the service provided in the period,

recognised on an accruals basis as they fall due. The consideration due is based on the

value of clients’ underlying assets under administration.

Fund management fees are calculated as a proportion of the net asset value of the funds

under management in each of the HL Multi-Manager, Select funds, building block funds and

portfolio funds for the management services provided by the Group’s fund management

subsidiary. They are charged monthly in arrears and are recognised on an accruals basis

in the period during which the service is provided.

Active Savings revenue is earned on fees from partner banks and interest earned on cash held

in the client hub account.

Net interest income on client money is the revenue earned on money held within Group

products by clients. It represents amounts retained and received from clients for the

administration of cash on the platform, after interest is received by clients. It is linked to

the underlying interest rates and is recognised over time, based on the balances held in

investment accounts under administration.

Renewal commission is earned on third-party agreements entered into by clients, as a result

of advice provided to them, and is recognised on an accruals basis as it becomes due and

payable to the Group.

Ongoing advice charges are levied monthly in arrears for the period during which the service

is provided and are calculated as a percentage of the assets under management within the

Group’s Portfolio Management Service.

The Portfolio Management Service is provided to clients who prefer a managed service.

This service encompasses the HL platform custody and administration, fund management

and ongoing advice services. All revenue streams are as described above. Additionally, initial

advice charges are levied on taking the product up or on any advised deposit into the product,

as described in transactional revenue below. Each stream is separately charged in relation

to the product. Each stream can also be taken by HL clients who do not use the Portfolio

Management Service, either as separate services or in any combination as required.

Although most ongoing revenue is based on the value of underlying assets, these are not

considered to constitute variable income in which significant judgement or estimation is

involved. The calculations are based on short timelines or point in time calculations that

represent the end of a quantifiable period, in accordance with the contract. These are charged

to and paid by the client on the same value, constituting the transaction price for the specified

period. At any time during the period a client may choose to remove their assets from a service

and no further revenue is received.

All obligations to the customer are satisfied at the end of the period in which the service is

provided for ongoing revenue, with payment being due immediately.

Transactional

The other source is revenue earned on individual transactions and is primarily made up of

fees on stockbroking transactions and advisory event driven fees, referred to as initial advice

charges in the table on the next page. The price is determined in relation to the specific

transaction type and are frequently flat fees. There is no variable consideration in relation to

transactional revenue.

The Group earns fees on stockbroking transactions entered into on behalf of clients. The fee

earned is recorded in the accounts on the date of the transaction, being the date on which

services are provided to clients and the Group becomes entitled to the income.

Initial advice charges are made to clients for providing advice to clients on specific financial

matters or in relation to amounts deposited into the Portfolio Management Service. This

can take the form of ad hoc advice on a specific pool of assets or initial advice about taking

managed services. The transaction price is determined at the point advice is accepted

based on the final value of assets that are being advised upon. Revenue is recognised at

the point at which acceptance of the advice is made by the client and payment is taken on

the implementation of advice. The average time between acceptance and implementation is

30 days, if advice is not accepted then no charge will be taken. If the client is advised to take

a managed service, ongoing advice charges are levied separately.

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Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 1: RESULTS FOR THE YEAR

NOTES TO THE GROUP FINANCIAL STATEMENTS

INCOME STATEMENT CONTINUED

1.1 Revenue continued

Timing and judgements made in relation to revenue

As at year end, the Group has discharged all of its obligations in relation to contracts

with customers, other than in relation to those services that are billed in advance or arrears.

These amounts are not material and where an obligation still exists at year end and the

payment exceeds the services rendered a contract liability is recognised as deferred income

in trade payables and spread across the period of the transaction evenly. At the year end the

longest period of liability in relation to deferred income is eleven months.

None of the revenue streams contain financing components.

There are no judgements made in relation to the timing or determination of transaction price of

any revenue streams.

		Restated
	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
Ongoing revenue
Platform fees*	278.4	268.4
Fund management fees	53.2	54.3
Ongoing advice charges	7.1	7.4
Active Savings revenue	19.9	8.7
Net interest income	260.7	268.7
Renewal commission	3.2	3.0
Transactional revenue
Fees on stockbroking transactions	133.9	116.9
Initial advice charges	4.5	4.7
Other transactional income*	4.0	3.0
Total revenue	764.9	735.1

* For the year ended 30 June 2023, we had previously offset £2.1 million in relation to discounts provided to clients on platform fees

against other transactional income. These are now considered to be more appropriately classified against platform fees, as the

discounts only relate to platform fees.

1.2 Segmental reporting

Under IFRS 8, operating segments are required to be determined based upon the way the Group

generates revenue and incurs expenses and the primary way in which the Chief Operating

Decision Maker (CODM) is provided with financial information. In the case of the Group, the

CODM is considered to be the Executive Committee.

It is the view of the Board and of the Executive Committee that there is only one segment, being

the direct wealth management service administering investments in ISA, SIPP and Fund & Share

accounts, and providing cash management services for individuals and corporates in the United

Kingdom. Given that only one segment exists, no additional information is presented in relation

to it, as it is disclosed throughout these financial statements.

The Group does not rely on any individual customer and so no additional customer information

is reported.

1.3 Operating costs

Operating costs

Operating costs represent those arising as a result of our operations and include depreciation

and amortisation. All amounts are recognised on an accruals basis.

Activity costs

Activity costs comprise marketing costs, dealing related costs, and payment costs for client

cash transferred onto the platform.

Support costs

Support costs comprise costs other than staff, activity and technology costs that are part

of the underlying business of the Group. Calculated as the total cost, less staff, activity,

technology, leasing and amortisation, depreciation and impairment costs.

Technology costs

Technology costs include software support fees and service subscriptions. As we build our

digital capacity we utilise more third-party services that are cloud based.

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Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 1: RESULTS FOR THE YEAR

NOTES TO THE GROUP FINANCIAL STATEMENTS

INCOME STATEMENT CONTINUED

1.3 Operating costs continued

Operating profit has been arrived at after charging:

	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
Depreciation of owned plant and equipment and right-of-use
assets (note 2.3)	8.3	8.5
Amortisation of other intangible assets (note 2.2)	6.3	6.8
Impairment of intangible assets (note 2.2)	14.4	–
FSCS costs	5.0	6.1
Activity costs
– Marketing costs	26.2	20.7
– Dealing and financial services costs	27.4	23.4
Technology costs	48.9	40.4
Support costs
– Legal and professional costs	34.0	40.9
– Office running costs	6.4	8.4
– Other operating costs	18.3	16.2
Staff (including contractors) costs (note 1.5)	203.0	179.3
Operating costs	398.2	350.7

1.4 Auditors’ remuneration

The analysis of auditors’ remuneration is as follows:

		Restated
	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
Audit fees
Fees payable to the Company’s auditors and their associates for the audit of Parent Company and consolidated financial
statements 1	0.3	0.2
Fees payable to the Company’s auditors and their associates for the audit of Company’s subsidiaries	0.7	0.5
Audit related assurance services	0.7	0.5
Other assurance services	0.1	0.1
	1.8	1.3

1 In the current and prior period we have split the remuneration figure between the audit of the consolidated financial statements and

the subsidiary audits. Previously, in the prior period fees payable to the Company’s auditors and its associates for the audit of Parent

Company, Company’s subsidiaries and consolidated financial statements were shown in one line.

Audit and related services provided by the auditors are discussed further in the Audit Committee

Report on page 79.

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Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

1.5 Staff costs

Staff costs represent amounts payable to employees, contractors and NEDs in respect of

services provided in the year including wages and salaries, share-based payment expenses,

bonuses, payments to a defined contribution retirement benefit scheme and related social

security costs. Amounts are recognised as the services are provided.

	Year ended	Year ended
	30 June 2024	30 June 2023
	No.	No.
The average monthly number of employees of the Group
(including Executive Directors and contractors) was:
Operating and support functions	1,668	1,558
Administrative functions	879	661
	2,547	2,219

Their aggregate remuneration comprised:	£m	£m
Wages and salaries	163.0	149.9
Social security costs	17.2	14.4
Share-based payment expenses	9.2	8.2
Other pension costs	21.1	16.0
Total costs paid for staffing	210.5	188.5
Capitalised in the year	(7.5)	(9.2)
Staff costs (including contractors)	203.0	179.3

The staff (including contractors) costs of £203.0 million (2023: £179.3m) are net of costs

capitalised under intangible assets as disclosed in note 2.2. In total, £7.2 million of wages and

salaries (2023: £8.9m), social security costs of £0.2 million (2023: £0.1m) and pension costs

of £0.1 million; (2023: £0.2m) were capitalised. See note 2.2 for further detail of the amounts

capitalised.

There were 86 (2023: 143) contractors with a total cost of £14.3 million (2023: £17.7m).

1.6 Finance and other income

	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
Interest on bank deposits	29.9	15.8
Other income	0.3	3.2
	30.2	19.0

1.7 Finance costs

	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
Commitment fees	0.3	0.3
Interest incurred on lease payables	0.3	0.4
Finance costs	0.6	0.7

The finance costs relate to the commitment fees paid in respect of a revolving credit facility

available to the Group. The facility allows the Group to draw up to £75 million (2023: £75m) and is

undrawn as at 30 June 2024. The facility incurs interest charges, consisting of a margin of 0.85%

plus SONIA per annum when drawn.

The lease payments are discounted using the interest rate implicit in the lease. If that rate

cannot be readily determined, which is generally the case for leases in the Group, the lessee’s

incremental borrowing rate is used, being the rate that the individual lessee would have to pay to

borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar

economic environment with similar terms, security and conditions. The rates range between 2.5%

and 4.4%, with a weighted average incremental borrowing rate of 2.5%. Lease payments are

allocated between principal and finance cost. The finance cost is charged to profit or loss over

the lease period so as to produce a constant periodic rate of interest on the remaining balance of

the liability for each period.

SECTION 1: RESULTS FOR THE YEAR

NOTES TO THE GROUP FINANCIAL STATEMENTS

INCOME STATEMENT CONTINUED

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Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

1.8 Tax

Taxation

The tax expense represents the sum of the tax currently payable and deferred tax. The tax

currently payable is based on taxable profit for the year. Taxable profit differs from net profit

as reported in the Income Statement because it excludes items of income or expense that

are taxable or deductible in other years and it further excludes items that are never taxable

or deductible. The Group’s liability for current tax is calculated using tax rates that have been

enacted or substantively enacted by the end of the reporting period.

Deferred tax is the tax expected to be payable or recoverable on differences between the

carrying amounts of assets and liabilities in the financial statements and the corresponding

tax bases used in the computation of taxable profit, and is accounted for using the balance

sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary

differences and deferred tax assets are recognised to the extent that it is probable that

taxable profits will be available against which deductible temporary differences can be utilised.

Such assets and liabilities are not recognised if the temporary difference arises from the initial

recognition of goodwill or from the initial recognition (other than in a business combination) of

other assets and liabilities in a transaction that affects neither the tax profit nor the accounting

profit nor are deferred tax liabilities recognized for taxable temporary differences arising on

investments in subsidiaries and associates where the Group is able to control the reversal of

the temporary difference and it is probably that the temporary difference will not reverse in the

foreseeable future.

Deferred tax is calculated at the tax rates that are expected to apply in the year when the

liability is settled or the asset is realised. Deferred tax is charged or credited in the Income

Statement, except when it relates to items charged or credited directly to equity, in which case

the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when

there is a legally enforceable right to set off current tax assets against current tax liabilities and

when they relate to income taxes levied by the same taxation authority and the Group intends

to settle its current tax assets and liabilities on a net basis.

	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
Current tax: on profits for the year	103.1	80.0
Current tax: adjustments in respect of prior years	(2.9)	(0.2)
Deferred tax	(1.0)	(0.8)
Deferred tax: adjustments in respect of prior years	3.9	–
	103.1	79.0

Corporation tax is calculated at 25% of the estimated assessable profit for the year to 30 June

2024 (2023: 20.5%).

In addition to the amount charged to the Consolidated Income Statement, certain tax amounts

have been credited directly to equity as follows:

	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
Deferred tax relating to share-based payments	2.0	(0.2)
Current tax relating to share-based payments	(0.1)	(0.1)
	1.9	(0.3)

Pillar Two – Global Minimum Tax

The Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework

on Base Erosion and Profit Shifting published the Pillar Two model rules designed to address the

tax challenges arising from the digitalisation of the global economy.

These rules seek to ensure that UK-headquartered multinational enterprises pay a minimum tax

rate of 15% on UK and overseas profits. Where a group has an effective tax rate below 15% in a

jurisdiction, the group may still not be required to pay a top-up tax if the group maintains sufficient

staff and assets in that jurisdiction. These rules have been enacted or substantively enacted in

the jurisdictions in which the Group operates, however they are not in effect for the year ended

30 June 2024. The Group has undertaken an assessment and does not reasonably believe these

rules will affect the Group for the year ending 30 June 2025. As a result, the Group has not

recognised any deferred tax liabilities in respect of Pillar Two.

We have performed an assessment of the Group’s potential exposure to Pillar Two rules by

simulating the impact of these rules using our consolidated financial statements for 2021, 2022,

2023 and 2024. As a result of this simulation the Group does not reasonably believe these rules

will materially affect the Group for the year ending 30 June 2025. The Group pays tax in the UK

close to the prevailing rate of 25% and is expected to continue to do so. The Group’s effective

tax rate in Poland may fall below 15%, however; no top-up tax is expected due to the Group’s

expenditure on staff and assets in Poland. We will continue to assess the impact of Pillar Two

throughout the year ending 30 June 2025.

SECTION 1: RESULTS FOR THE YEAR

NOTES TO THE GROUP FINANCIAL STATEMENTS

INCOME STATEMENT CONTINUED

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Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

1.8 Tax continued

Factors affecting tax charge for the year

It is expected that the ongoing effective tax rate will remain at a rate approximating to the

standard UK corporation tax rate in the medium term, except for the impact of deferred tax arising

from the timing of exercising of share options which is not under our control. The Group’s taxable

profits for this accounting year are taxed at 25%. Deferred tax has been recognised at 25% as that

is the rate expected to be in force at the time of the reversal of the temporary difference.

The charge for the year can be reconciled to the profit per the Income Statement as follows:

	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
Profit before tax	396.3	402.7
Tax at the standard UK corporation tax rate of 25% (2023: 20.5%)	99.1	82.6
Non-taxable income	–	(5.7)
Items not allowable for tax	3.0	2.3
Additional deduction for tax purposes	–	(0.2)
Adjustments in respect of prior years	1.0	0.1
Foreign tax suffered	–	0.1
Impact of the change in tax rate	–	(0.2)
Tax expense for the year	103.1	79.0
Effective tax rate	26.0%	19.7%

The additional deduction for tax purposes only arises from enhanced capital allowances available

from the super deduction on qualifying plant and machinery purchased within the financial year

ended 30 June 2023.

Factors affecting future tax charge

Any increase or decrease to the share price of Hargreaves Lansdown plc will impact the amount

of tax deduction available in future years on the value of shares acquired by staff under share

incentive schemes.

1.9 Earnings per share (EPS)

Basic earnings per share is calculated by dividing the profit attributable to equity holders of

the Company by the weighted average number of ordinary shares in free issue during the year,

including ordinary shares held in the Hargreaves Lansdown Employee Benefit Trust (HL EBT) and

Hargreaves Lansdown SIP Trust (SIP) reserve which have vested unconditionally with employees.

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary

shares outstanding to assume conversion of all potentially dilutive ordinary shares.

The weighted average number of anti-dilutive share options and awards excluded from the

calculation of diluted earnings per share was 640,804 at 30 June 2024 (2023: 1,285,599).

	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
Earnings
Earnings for the purposes of basic and diluted EPS – net profit
attributable to equity holders of parent company	293.2	323.8
Number of shares
Weighted average number of ordinary shares	474,318,625	474,318,625
Weighted average number of shares held by HL EBT and SIP	(454,269)	(242,404)
Weighted average number of shares held by HL EBT and SIP
that have vested unconditionally with employees	150,645	89,116
Weighted average number of ordinary shares for the purposes
of basic EPS	474,015,001	474,165,337
Weighted average number of dilutive share options held by HL
EBT and SIP that have not vested unconditionally with employees	1,220,895	686,256
Weighted average number of ordinary shares for the purposes
of diluted EPS	475,235,896	474,851,593
Earnings per share	Pence	Pence
Basic EPS	61.9	68.3
Diluted EPS	61.7	68.2

SECTION 1: RESULTS FOR THE YEAR

NOTES TO THE GROUP FINANCIAL STATEMENTS

INCOME STATEMENT CONTINUED

143

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Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

1.10 Share-based payments

The Group issues equity settled share-based payments to certain employees. Equity settled

share-based payments are measured at fair value (excluding the effect of non-market based

vesting conditions) at the date of grant. The awards are expensed on a straight-line basis over

the vesting period, based on management’s best estimate of awards vesting and adjusted for

the impact of non-market-based vesting conditions. Annual revisions are made to the estimate

of awards vesting, based on non-market-based vesting conditions. The impact of the revision

is recognised in the Income Statement such that the cumulative expense reflects the revised

estimate, with a corresponding adjustment to reserves.

Fair value is measured by use of the Black-Scholes model. The expected life used in

the model has been adjusted, based on management’s best estimate, for the effects of

non-transferability, exercise restrictions and behavioural considerations.

Any gains or losses on the sale of the Company’s own shares held by the EBT are credited or

debited directly to the EBT reserve.

Equity settled share option schemes

The Group seeks to facilitate equity ownership by employees, principally through schemes that

encourage and assist the purchase of the Company’s shares.

The Group operates six share option and share award plans: the Employee Savings Related

Share Option Scheme (SAYE), the Hargreaves Lansdown plc Share Incentive Plan (SIP) and the

Executive Option Scheme which includes the Hargreaves Lansdown Company Share Option

Scheme, Sustained Performance Plan (SPP), Deferred Performance Bonus Plan (DPBP) and the

Performance Share Plan (PSP).

Options granted under the SAYE scheme vest over three years.

Options granted under the Employee Share Incentive Plan vest over a three-year period.

Options granted under the Executive Option Scheme range between vesting at grant date and a

maximum of five years. Options under the Hargreaves Lansdown Company Share Option Scheme

are exercisable at a price equal to the market value of the Company’s shares on the date of grant.

Options granted under the SPP, DPBP and the PSP are granted at nil cost.

There are currently no performance conditions attached to any options granted under any of

the schemes, with the exception of the Sustained Performance Plan (SPP) and the Performance

Share Plan (PSP) – a part of the Executive Option Scheme, although options are forfeited (in most

circumstances) if the employee leaves the Group before the options vest.

Details of the share options outstanding during the year are as follows:

		Year ended 30 June 2024		Year ended 30 June 2023
		Weighted		Weighted
	Share	average	Share	average
	options	exercise price	options	exercise price
	No.	Pence	No.	Pence
SAYE
Outstanding at beginning of the year	1,284,981	693.6	978,323	919.5
Granted during the year	913,206	556.0	993,039	626.0
Exercised during the year	(3,512)	626.0	–	–
Lapsed during the year	(59,208)	1,175.0	(7,123)	1,245.1
Forfeited during the year	(664,007)	655.9	(679,258)	914.4
Outstanding at the end of the year	1,471,460	609.3	1,284,981	693.6
Exercisable at the end of the year	23,874	1,232.0	–	–
Executive Option Scheme
Outstanding at beginning of the year	1,813,631	278.0	1,484,090	358.5
Granted during the year	1,251,696	–	662,847	–
Exercised during the year	(612,220)	75.34	(257,447)	24.53
Lapsed during the year	(66,311)	–	–	–
Forfeited during the year	(166,928)	–	(75,859)	–
Outstanding at the end of the year	2,219,868	178.0	1,813,631	278.0
Exercisable at the end of the year	439,206	888.4	576,152	875.0
SIP
Outstanding at beginning of the year	20,725	23.5	33,475	23.5
Exercised during the year	–	23.5	(12,750)	23.5
Outstanding at the end of the year	20,725	23.5	20,725	23.5
Exercisable at the end of the year	20,725	23.5	20,725	23.5

The weighted average market share price at the date of exercise for options exercised during the

year was 829.3 pence (2023: 861.3 pence).

SECTION 1: RESULTS FOR THE YEAR

NOTES TO THE GROUP FINANCIAL STATEMENTS

INCOME STATEMENT CONTINUED

144

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Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

1.10 Share-based payments continued

The share options outstanding at the end of each year have exercise prices and expected

remaining lives as follows:

		Year ended 30 June 2024		Year ended 30 June 2023
		Weighted		Weighted
	Share	average options	Share	average options
	options	exercise price	options	exercise price
	No.	Pence	No.	Pence
Weighted average expected
remaining life
0–1 years	1,115,029	452.7	1,085,774	517.1
1–2 years	817,198	341.3	516,695	423.4
2–3 years	1,614,636	305.7	1,215,280	506.5
3–4 years	165,190	–	74,193	–
4–5 years	–	–	227,394	–
	3,712,053	343.8	3,119,336	447.5

The fair value at the date of grant of options awarded during the year ended 30 June 2024 and

the year ended 30 June 2023 has been estimated by the Black-Scholes methodology and the

principal assumptions required by the methodology were as follows:

	At 30 June 2024	At 30 June 2023
Weighted average share price (pence)	805.2	839.21
Expected dividend yields	2.43%	3.05%
SAYE
Weighted average exercise price	5.56p	6.26p
Expected volatility	52%	38%
Risk free rate	4.33%	3.68%
Expected life	3 years	3 years
Fair value	254.0p	223.0p
Executive Option Scheme
Weighted average exercise price	0.00p	0.00p
Expected volatility	35%	38%
Risk free rate	3.25%	3.23%
Expected life	2.8 years	3.8 years
Fair value	795.9p	891.1p

The expected volatility

The expected Hargreaves Lansdown plc share price volatility was determined by calculating the

historical volatility of the Group’s share price since flotation in May 2007. Prior to 15 May 2007, the

Company’s shares were not listed on a stock exchange and therefore no readily available market

price existed for the shares. Since 15 May 2007, a quoted market price has been available for the

Company’s shares.

The Group recognised total expenses related to equity settled share-based payment transactions

as shown in note 1.5.

SECTION 1: RESULTS FOR THE YEAR

NOTES TO THE GROUP FINANCIAL STATEMENTS

INCOME STATEMENT CONTINUED

145

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Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 2: ASSETS AND LIABILITIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2024

		At 30 June 2024	At 30 June 2023
	Note	£m	£m
ASSETS
Non-current assets
Goodwill	2.1	1.3	1.3
Other intangible assets	2.2	39.3	50.4
Property, plant and equipment	2.3	12.5	17.4
Deferred tax	2.7	0.5	2.6
		53.6	71.7
Current assets
Investments	2.4	1.2	0.5
Trade and other receivables	2.5	824.6	836.9
Cash and cash equivalents	2.6	616.6	373.3
Current tax assets		3.2	3.4
		1,445.6	1,214.1
Total assets		1,499.2	1,285.8
LIABILITIES
Current liabilities
Trade and other payables	2.8	671.9	565.5
		671.9	565.5
Net current assets		773.7	648.6
Non-current liabilities
Provisions	2.9	8.0	3.0
Non-current lease liabilities	2.10	4.2	7.6
Total liabilities		684.1	576.1
Net assets		815.1	709.7
EQUITY
Share capital	3.1	1.9	1.9
Shares held by EBT		(1.4)	(6.4)
EBT reserve		2.9	(1.0)
Retained earnings		811.7	715.2
Total equity, attributable to the owners of the parent		815.1	709.7
Total equity		815.1	709.7

The consolidated financial statements on pages 136 to 165 were approved by the Board and authorised for issue on 14 August 2024 and signed on its behalf by:

Amy Stirling

Chief Financial Officer

146

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Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 2: ASSETS AND LIABILITIES

NOTES TO THE GROUP FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONTINUED

2.1 Goodwill

Goodwill arising on consolidation represents the excess of the cost of acquisition over

the Group’s interest in the fair value of the identifiable assets and liabilities of a subsidiary at

the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently

measured at cost less any accumulated impairment losses. For the purpose of impairment

testing, goodwill acquired in a business combination is allocated to the cash generating unit

expected to benefit from the synergies of the combination.

The cash generating unit to which goodwill has been allocated is reviewed for impairment

at least annually as a matter of course, and whenever an event or change in circumstances

occurs which indicates potential impairment. The carrying value of goodwill is compared to the

recoverable amount, which is the higher of value in use and the fair value less costs of disposal.

Any impairment is recognised immediately in profit or loss and is not subsequently reversed.

On disposal of a subsidiary, the attributable amount of goodwill is included in the determination

of the profit or loss on disposal.

	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
Cost – at beginning and end of year	1.5	1.5
Accumulated impairment losses
At beginning and end of year	0.2	0.2
Carrying amount – at end of year	1.3	1.3

The net carrying value of goodwill relates entirely to the acquisition of Hargreaves Lansdown

Pensions Direct Limited (HLPD) now named Hargreaves Lansdown Advisory Services Limited (HLAS).

The Group has prepared financial forecasts for the cash generating unit to which the purchase

and goodwill relates for the period to June 2027 that show the cash generating unit is expected

to remain profitable and cash generative. Impairment has been assessed with respect to the

underlying cash generating unit to which the goodwill relates and no issues are noted.

2.2 Other intangible assets

Other intangible assets comprise customer lists, computer software and the Group’s significant

propositional systems, which are stated at cost less amortisation and any recognised

impairment loss. Amortisation is provided, where material, on all intangible assets excluding

goodwill at rates calculated to write off the cost or valuation, less estimated residual value,

of each asset evenly using a straight-line method over its estimated useful life as follows:

Customer list – eight years

The customer list relates to acquired books of business and does not include internally

generated client lists. The carrying value of the assets is reviewed for impairment at least

every 12 months, or when events or changes in circumstances indicate that the carrying value

may not be recoverable.

Computer software – over three to eight years

Computer software relates to purchases of licences and software, in line with the requirements

of IAS 38. The carrying values of computer software are reviewed for impairment when events

or changes in circumstances indicate that the carrying value may not be recoverable. The

gain or loss arising on the disposal or retirement of an asset is determined as the difference

between the sales proceeds and the carrying amount of the asset and is recognised in the

Consolidated Income Statement.

Internally developed software – eight years

IT development costs are capitalised only to the extent that they have led to the creation

of enduring assets, which deliver benefits at least as great as the amount capitalised and

in accordance with the recognition criteria of IAS 38 intangible assets.

When assessing projects for capitalisation we apply IAS 38’s recognition and measurement

criteria for internally generated intangible assets to development expenditure that is both

propositional in nature (as opposed to regulatory or administrative), and which is, or is

expected to be, material over the life of the project.

Development work has been undertaken in house by IT staff, management and contractors

to develop new strategic solutions focused on improving our ability to serve clients, including

improving our transfers, payment solutions, client experience and Advice and Guidance

propositions as well as continued improvements to our key operating systems.

147

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Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 2: ASSETS AND LIABILITIES

NOTES TO THE GROUP FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONTINUED

2.2 Other intangible assets continued

In-house development work has also been undertaken in Hargreaves Lansdown Savings

Limited to further develop digital cash savings products. Development commenced in the year

to 30 June 2016 and continues to the current year.

Costs relating to an asset that is not yet fully available for use by the business, are classified

as internally developed software and are reviewed for impairment at least annually. During the

period we impaired internally developed software for which there is no longer an intended future

use. These assets have been written off in full and the net book value of £14.4 million (2023:

£nil), equivalent to the cost, has been recorded in operating costs in the Income Statement.

In accordance with the provisions of IAS 38 the costs are capitalised as an intangible asset

and subsequently amortised over the estimated useful life of the systems of eight years,

starting from the date at which the assets are put into use.

Impairment of intangible assets excluding goodwill

At the end of each reporting period, the Group reviews the carrying amounts of its tangible

and intangible assets to determine whether there is any indication that those assets have

suffered an impairment loss. If any indication exists, the recoverable amount of the asset

is estimated in order to determine the extent of the loss. Where the asset does not generate

cash flows, independent from other assets, the Group estimates the recoverable amount of

the cash generating unit to which the asset belongs. Recoverable amount is the higher of fair

value, less costs to sell, and value in use.

If the recoverable amount of an asset is estimated to be less than its carrying amount,

the carrying amount of the asset is reduced to its recoverable amount and an impairment

loss is recognised as an expense immediately.

			Internally
	Customer	Computer	developed
	list	software	software	Total
	£m	£m	£m	£m
Cost
At 1 July 2022	4.6	18.8	46.0	69.4
Additions	–	–	19.9	19.9
Disposal	–	(0.7)	–	(0.7)
At 30 June 2023	4.6	18.1	65.9	88.6
Additions	–	1.0	8.6	9.6
Impairment	–	–	(14.4)	(14.4)
At 30 June 2024	4.6	19.1	60.1	83.8
Accumulated amortisation
At 1 July 2022	1.8	17.3	13.0	32.1
Disposal	–	(0.7)	–	(0.7)
Charge	0.6	–	6.2	6.8
At 30 June 2023	2.4	16.6	19.2	38.2
Charge	0.6	1.1	4.6	6.3
At 30 June 2024	3.0	17.7	23.8	44.5
Carrying amount
At 30 June 2024	1.6	1.4	36.3	39.3
At 30 June 2023	2.2	1.5	46.7	50.4
At 30 June 2022	2.8	1.5	33.0	37.3

During the period we impaired internally developed software for which there is no longer an

intended future use as part of a detailed review of our technology roadmap. Two internally

generated assets have been written off in full and both with a net book value of £7.2 million. In total,

£14.4 million has been impaired and has been recorded in operating costs in the Income Statement.

The amortisation charge above is included in operating costs in the Income Statement.

The customer lists are a separately acquired intangible asset and do not include any internally

generated element. The remaining amortisation period for these assets is five years.

Computer software includes externally acquired licences and internally developed software

relates entirely to in-house developed systems. Commitments in respect of intangible assets are

shown in note 5.3. Internally developed software includes capitalised staff costs, as disclosed

in note 1.5.

148

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Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

2.3 Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and any

recognised impairment loss. Cost includes the original purchase price of the asset and the

costs attributable to bringing the asset to working condition for its intended use.

Property, plant and equipment now includes both owned and leased assets. Owned assets

are measured initially at cost and subsequently at cost less accumulated depreciation. Leased,

or right-of-use assets are measured initially at the present value of all future lease payments,

less any prepaid or accrued rent or incentives and any expected dilapidation cost being the

initial value.

Subsequently, leased assets are measured at initial value less accumulated depreciation.

Depreciation is charged based on the estimates of useful economic lives and expected

residual values, which are reviewed annually, for all plant and equipment, except for leased

assets which are depreciated on a straight-line basis over their economic lives. Management

determines the useful lives and residual values for assets when they are acquired, based on

experience with similar assets and taking into account other relevant factors, such as any

expected changes in technology. The charge is calculated to write off the cost or valuation,

less estimated residual value, of each asset evenly using a straight-line method over its

estimated useful life as follows:

Computer hardware – over three to ten years

Office equipment (includes fixtures and leasehold improvements) –

over three to ten years

Right-of-use assets – over the term of the associated lease

The carrying values of plant and equipment are reviewed for impairment when events or

changes in circumstances indicate that the carrying value may not be recoverable. The

gain or loss arising on the disposal or retirement of an asset is determined as the difference

between the sales proceeds and the carrying amount of the asset and is recognised

in the Income Statement.

SECTION 2: ASSETS AND LIABILITIES

NOTES TO THE GROUP FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONTINUED

Property, plant and equipment

	Right-of-use	Computer	Office
	assets	hardware	equipment	Tota l
	£m	£m	£m	£m
Cost
At 1 July 2022	20.4	43.9	13.0	77.3
Additions	–	2.1	1.4	3.5
Disposals	–	(2.1)	(1.4)	(3.5 )
At 30 June 2023	20.4	43.9	13.0	77.3
Additions	0.1	2.9	0.4	3.4
Disposals	–	(7.0)	(0.1)	(7.1 )
At 30 June 2024	20.5	39.8	13.3	73.6
Accumulated depreciation
At 1 July 2022	8.9	36.0	9.9	54.8
Charge	3.1	3.9	1.5	8.5
Disposal	–	(2.0)	(1.4)	(3.4 )
At 30 June 2023	12.0	37.9	10.0	59.9
Charge	3.1	3.8	1.4	8.3
Disposal	–	(7.0)	(0.1)	(7.1 )
At 30 June 2024	15.1	34.7	11.3	61.1
Carrying amount
At 30 June 2024	5.4	5.1	2.0	12.5
At 30 June 2023	8.4	6.0	3.0	17.4
At 30 June 2022	11.5	7.9	3.1	22.5

During the period we conducted a review for tangible assets that have nil net book value but

are still active in our fixed asset register. It was identified that around £7.1 million of hardware

assets were no longer in use and could therefore be disposed of. As these assets have all fully

depreciated there is no loss on disposal as a result of this review.

Leases recognised in property, plant and equipment

	At	At
	30 June 2024	30 June 2023
	£m	£m
Right-of-use assets
Buildings	5.4	8.4

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Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 2: ASSETS AND LIABILITIES

NOTES TO THE GROUP FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONTINUED

2.3 Property, plant and equipment continued

Amounts recognised in the Consolidated Income Statement

		Year ended	Year ended
		30 June 2024	30 June 2023
	Note	£m	£m
Right-of-use assets – depreciation
Buildings		3.1	3.1
Lease expense recognised in finance costs	1.7	0.3	0.4

2.4 Investments

Investments are recognised in the Group’s Statement of Financial Position, on trade date,

when the Group becomes party to the contractual provisions of an instrument and are initially

measured at fair value.

Investments by default are designated as being held at fair value through profit or loss and

are subsequently measured at fair value. Fair value being the quoted market price of the

listed investment, with any gain or loss reported within the Income Statement. An investment

is classified in this category if it is held principally for the purpose of selling in the short-term

mandatorily, in accordance with IFRS 9.

The Group derecognises financial assets only when the contractual rights to the cash flows, or

substantially all of the risks and rewards of ownership from the asset are transferred or expire.

On derecognition of a financial asset in its entirety, the difference between the asset’s carrying

amount and the sum of the consideration received and receivable is recognised in profit or loss.

	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
At beginning of year	0.5	0.8
Purchases	2.7	2.0
Disposals	(2.0)	(2.3)
At end of year	1.2	0.5
Comprising:
Current asset investment – UK-listed securities valued at quoted
market price	1.2	0.5

£1.2 million (2023: £0.5m) of investments are classified as held at fair value through profit and

loss, being deal related short–term investments. Fair value movements on investments are

included in support costs, as disclosed in note 1.3.

Investment balances are short-term positions the Group takes as a result of deals placed either

in error or due to having to take positions where clients are no longer able to hold an investment.

The gross gains and losses in relation to fair value include movements where no investment

position is taken and are as shown below:

Fair value movements on investments

	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
Gross gains	2.4	0.6
Gross losses	(4.1)	(2.1)
	(1.7)	(1.5)

2.5 Trade and other receivables

Financial assets are recognised in the Group’s Statement of Financial Position when the Group

becomes a party to the contractual provisions of the instrument and are initially measured at

fair value.

Trade and other receivables

Trade and other receivables comprise fees due from clients and counterparty positions. They

are subsequently measured at amortised cost using the effective interest method less any

expected credit losses. The financial assets are held in order to collect the contractual cash

flows and those cash flows are payments of interest and principal only.

Term deposits

Term deposits comprise cash deposits held by UK licensed banks for a period of greater than

three months, over which there is no recall during the term of the deposit. The amounts are

measured at amortised cost using the effective interest method in line with IFRS 9.

Accrued income

Accrued income relates to amounts earned by the Group, for which the Group has provided

services, but balances are not invoiced and collected in arrears. The amount relates to fund

management fees, interest on deposits and services direct to clients.

Expected Credit Losses

The Group recognises Expected Credit Losses (ECLs) relating to trade and other receivables,

term deposits and accrued income in line with the simplified approach per IFRS 9 and are

calculated based on the historic information available from the preceding years alongside

factors impacting the individual debtors, economic conditions and forecast expectations.

Impairment losses are recognised immediately in the Income Statement.

150

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Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 2: ASSETS AND LIABILITIES

NOTES TO THE GROUP FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONTINUED

2.5 Trade and other receivables continued

	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
Financial assets:
Trade receivables	619.2	510.3
Term deposits	20.0	130.0
Accrued income	158.5	169.0
Other receivables	8.4	7.6
Non-financial assets:	806.1	816.9
Prepayments	18.5	20.0
	824.6	836.9

In accordance with market practice and accounting standards on trade date accounting,

certain balances with clients, Stock Exchange member firms and other counterparties totalling

£595.2 million (2023: £486.0m) are included in trade receivables. These balances are presented

net where there is a legal right of offset and the ability and intention to settle net. The gross

amount of trade receivables is £747.2 million (2023: £659.7m) and the gross amount offset in the

Statement of Financial Position with trade payables is £169.7 million (2023: £186.6m). Other than

counterparty balances, trade receivables primarily consist of fees and amounts owed by clients

and renewal commission owed by fund management groups. There are no balances where

there is a legal right of offset but not a right of offset in accordance with accounting standards,

and no collateral has been posted for the balances that have been offset.

Given the short-term nature of the Group’s receivables and the expectation of the Group

in relation to its counterparties, there has been no material expected credit loss recognised

in the year – see note 5.7 for further details.

The Group does not have any contract assets in respect of its revenue contracts with customers

(2023: £nil).

2.6 Cash and cash equivalents

The composition of cash and cash equivalents is explained in note 4.2.

Term deposits held by the Group on unbreakable terms greater than three months are classified

as financial assets and are shown in note 2.5.

	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
Cash and cash equivalents:
Group cash and cash equivalent balances	616.3	368.0
Restricted cash – balances held by HL EBT	0.3	5.3
	616.6	373.3

At 30 June 2024, segregated deposit amounts held by the Group on behalf of clients in accordance

with the client money rules of the Financial Conduct Authority amounted to £6,517 million (2023:

£7,214m). In addition, there were pension trust and Active Savings cash accounts held on behalf of

clients not governed by the client money rules of £6,322 million (2023: £6,224m). The client retains

the ownership in both these deposit and cash accounts, and accordingly they are not included in

the Statement of Financial Position of the Group.

Restricted cash balances relate to the balances held within the HL Employee Benefit Trust.

These are strictly held for the purpose of purchasing shares to satisfy options under the Group’s

share option schemes.

151

Hargreaves Lansdown

Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 2: ASSETS AND LIABILITIES

NOTES TO THE GROUP FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONTINUED

2.7 Deferred tax

Deferred tax assets/(liabilities) arise because of temporary differences only. The following are the

major deferred tax assets/(liabilities) recognised and movements thereon during the current and

prior reporting years. Deferred tax has been recognised at either 20.5% or 25% (2023: 20.5% or

25%) depending upon the rate expected to be in force at the time of the reversal of the temporary

difference. A deferred tax asset in respect of future share option deductions has been recognised

based on the Company’s share price as at 30 June 2024.

			Other
	Fixed		deductible
	asset tax	Share-based	temporary
	relief	payments	differences	Total
	£m	£m	£m	£m
At 1 July 2022	(0.5)	1.5	0.9	1.9
(Charge)/credit to income	(0.2)	1.0	–	0.8
Charge to equity	–	–	(0.1)	(0.1)
At 30 June 2023	(0.7)	2.5	0.8	2.6
(Charge)/credit to income	(3.0)	0.2	(0.1)	(2.9)
Credit/(charge) to equity	–	0.9	(0.1)	0.8
At 30 June 2024	(3.7)	3.6	0.6	0.5
Deferred tax expected to be recovered or settled:
Within 1 year after reporting date	(1.3)	0.5	0.3	(0.5)
>1 year after reporting date	(2.4)	3.1	0.3	1.0
	(3.7)	3.6	0.6	0.5

2.8 Trade and other payables

Financial liabilities are classified according to the substance of the contractual arrangements

entered into.

Trade payables are measured at amortised cost using the effective interest method.

In accordance with market practice, certain balances with clients, Stock Exchange member

firms and other counterparties are included as creditors.

Current elements of lease liabilities are included within other payables, being initially calculated

in line with IFRS 16. On inception a lease liability is measured as the present value of future

lease payments, discounted at the incremental borrowing rate implied within the lease.

The future lease payments of the Group are fixed, except for those that relate to leases

in a currency other than GBP, which may vary due to exchange rate movements.

	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
Financial liabilities
Trade payables	597.7	487.4
Current lease liabilities	4.4	4.6
Other payables	31.7	38.0
Non-financial liabilities	633.8	530.0
Deferred income	0.3	0.3
Accruals	27.0	26.5
Social security and other taxes	10.8	8.7
	671.9	565.5

In accordance with market practice, certain balances with clients, Stock Exchange member firms

and other counterparties totalling £593.4 million (2023: £483.5m) are included in trade payables,

similar to the treatment of trade receivables. As stated in note 2.5, where we have a legal right of

offset and the ability and intention to settle net, trade payable balances have been presented net.

Other payables principally comprise amounts owed to staff as a bonus and rebates due to the

regulated funds operated by the Group. Accruals and deferred income respectively principally

comprise amounts outstanding for trade purchases and receipts from clients, where cash is

received in advance for certain services.

All balances classified as deferred income in the prior year have been recognised in revenue

in the current year.

152

Hargreaves Lansdown

Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 2: ASSETS AND LIABILITIES

NOTES TO THE GROUP FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONTINUED

2.9 Provisions

Provisions are recognised when the Group has a present obligation as a result of a past

event, and it is probable that the Group will be required to settle that obligation. Provisions are

measured at the Directors’ best estimate of the expenditure required to settle the obligation

at the end of the reporting period, and are discounted to present value where the effect

is material.

	£m
Included within non-current liabilities
At 1 July 2022	2.6
Released in the year	(1.5)
Charged during the year	1.9
At 30 June 2023	3.0
Released in the year	(0.2)
Charged during the year	5.2
At 30 June 2024	8.0

The provision brought forward relates to property-related costs, including contractual obligations

that arise on the surrendering of the leases, in relation to the offices in Bristol. In the year we

increased these provisions by £0.2 million. Property provisions are not expected to be fully utilised

until 2026.

In the current year we have recognised a provision of £5.0 million in relation to potential

compensation claims. The figure represents the current most reliable estimate of the present

obligation. It is probable, but not certain, that a level of payment will be made and work is ongoing

to assess any liability.

2.10 Non-current lease liabilities

Lease liabilities are included within current other payables and non-current lease liabilities, being

initially calculated in line with IFRS 16. On inception a lease liability is measured as the present

value of future lease payments, discounted at the incremental borrowing rate implied within the

lease. The future lease payments of the Group are fixed, except for those that relate to leases

in a currency other than GBP, which may vary due to exchange rate movements.

Interest expense is incurred in relation to these leases, based on the incremental borrowing rate

implied in the contracts. This expense is recognised as a finance cost in the period to which

payment relates, see note 1.7 for further details.

	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
Lease liabilities greater than 12 months	4.2	7.6

Finance costs and financing cash flows associated with the lease are reconciled below to show

the movement in the year.

Reconciliation of lease liability changes to cash flows

		Year ended	Year ended
		30 June 2024	30 June 2023
	Note	£m	£m
Opening balance		12.2	16.5
Payment of principal in relation to lease liabilities	4.1	(3.9)	(4.7)
Interest incurred on lease payables	1.7	0.3	0.4
Current element of liability	2.8	(4.4)	(4.6)
Long-term liability		4.2	7.6

153

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Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 3: EQUITY

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 30 June 2024

			Attributable to the owners of the parent			Non-
	Share	Shares held	EBT	Retained		controlling	Total
	capital	by EBT	reserve	earnings	Total	interest	equity
	£m	£m	£m	£m	£m	£m	£m
At 1 July 2022	1. 9	(3. 6)	(2.4)	579.2	5 7 5 .1	(1 .6)	5 73.5
Total comprehensive income 1	–	–	–	3 23.8	323 .8	(0 . 1)	323 .7
Change in ownership	–	–	–	(1.7)	(1 .7)	1. 7	–
Employee Benefit Trust
Shares sold in the year	–	2.2	–	–	2.2	–	2.2
Shares acquired in the year	–	(5. 0)	–	–	(5 .0)	–	(5. 0)
HL EBT share sale	–	–	(2.2)	–	(2.2)	–	(2.2)
Reserve transfer on exercise of share options	–	–	3.6	(3. 6)	–	–	–
Employee share option scheme
Share-based payments expense	–	–	–	8.2	8. 2	–	8.2
Current tax effect of share-based payments (note 1.8)	–	–	–	(0 . 1)	(0 . 1)	–	(0 . 1)
Deferred tax effect of share-based payments (note 1.8)	–	–	–	(0 .2)	(0.2)	–	(0.2)
Dividend paid (note 3.2)	–	–	–	(190.4)	(190.4)	–	(190.4)
At 30 June 2023	1. 9	(6 .4)	(1 .0)	715.2	709. 7	–	7 09. 7
Total comprehensive income 1	–	–	–	293.2	293.2	–	293.2
Employee Benefit Trust
Shares sold in the year	–	5.0	–	–	5.0	–	5.0
Shares acquired in the year	–	–	–	–	–	–	–
HL EBT share sale	–	–	(4 .7)	–	(4 .7)	–	(4. 7)
Reserve transfer on exercise of share options	–	–	8.6	(8. 6)	–	–	–
Employee share option scheme
Share-based payments expense	–	–	–	9. 2	9. 2	–	9. 2
Current tax effect of share-based payments (note 1.8)	–	–	–	(0 . 1)	(0 . 1)	–	(0 . 1)
Deferred tax effect of share-based payments (note 1.8)	–	–	–	2 .0	2 .0	–	2 .0
Dividend paid (note 3.2)	–	–	–	(199.2)	(199 .2)	–	(199 .2)
At 30 June 2024	1.9	(1 .4)	2.9	811 .7	815. 1	–	815. 1

1 Total comprehensive income includes profit for the year and the total comprehensive income presented is equal to profit in both years presented.

154

Hargreaves Lansdown

Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 3: EQUITY

NOTES TO THE GROUP FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY CONTINUED

3.1 Share capital

		At	At
		30 June 2024	30 June 2023
		£m	£m
Authorised: 525,000,000	(2023: 525,000,000) ordinary shares
of 0.4p each		2.1	2.1
Issued and fully paid: ordinary shares of 0.4p each		1.9	1.9
		Shares	Shares
Issued and fully paid: number of ordinary shares of 0.4p each		474,318,625	474,318,625

The Company has one class of ordinary shares which carry no right to fixed income.

The shares held by the EBT represents the cost of shares in Hargreaves Lansdown plc purchased

in the market and held by the Hargreaves Lansdown EBT to satisfy options under the Group’s

share option schemes.

The EBT reserve represents the cumulative gain on disposal of investments held by the HL

EBT. The reserve is not distributable by the Company as the assets and liabilities of the EBT are

subject to management by the Trustees in accordance with the EBT trust deed.

3.2 Dividends

Dividend recognition

Dividend distributions to the Company’s shareholders are recognised in the accounting period

in which the dividends are declared and paid, or, if earlier, in the accounting period when the

dividend is approved by the Company’s shareholders at the Annual General Meeting.

Amounts recognised as distributions to equity holders in the year:

	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
2023 final dividend of 28.8p (2022 final dividend: 27.44p)
per share	136.6	130.2
2024 interim dividend of 13.20p (2023: 12.70p) per share	62.6	60.2
Total dividends paid during the year	199.2	190.4

After the end of the reporting period, the Directors proposed a final ordinary dividend of 30.0

pence per share, payable on 1 November 2024 to shareholders on the register on 4 October

2024. Dividends are required to be recognised in the financial statements when paid, and

accordingly the proposed dividend amounts are not recognised in these financial statements, but

will be included in the 2025 financial statements as follows:

	£m
2024 final dividend of 30 .00p (2023 final dividend: 28 .80p) per share	142.2
Total dividends	142.2

Under an arrangement dated 30 June 1997, the Hargreaves Lansdown Employee Benefit Trust,

which held the following number of ordinary shares in Hargreaves Lansdown plc at the date

shown, has agreed to waive all dividends.

	At	At
	30 June 2024	30 June 2023
	No. of shares	No. of shares
Number of shares held by the Hargreaves Lansdown
Employee Benefit Trust	163,348	779,080
Representing percentage of called-up share capital	0.03%	0.16%

155

Hargreaves Lansdown

Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 4: CONSOLIDATED STATEMENT OF CASH FLOWS

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 30 June 2024

			Restated
		Year ended	Year ended
		30 June 2024	30 June 2023
	Note(s)	£m	£m
Net cash from operating activities
Profit for the year after tax		293.2	323.7
Adjustments for:
Income tax expense	1.8	103. 1	79.0
Depreciation of plant and equipment	1.3/2.3	8.3	8. 5
Amortisation of intangible assets	1.3/2.2	6.3	6.8
Impairment of intangible assets	1.3/2.2	14.4	–
Interest income*		(30.2)	(15 .8)
Share-based payment expense	1.5	9. 2	8. 2
Interest on lease liabilities	1.7/4.1	0.3	0. 4
Increase in provisions		5.0	0.4
Operating cash flows before movements in working capital		40 9.6	411.2
Increase in receivables		(97 .6)	(203 .4)
Increase in payables		101 .4	72.2
Cash generated from operations		413 .4	2 8 0.0
Income tax paid		(101 .4)	(80 .5)
Interest received*		3 3.5	1 5.8
Net cash generated from operating activities		345. 5	2 1 5.3
Investing activities
Decrease/(increase) in term deposits		11 0.0	(110 .0)
Purchase of property, plant and equipment	2.3	(3.4)	(3. 5)
Cash capitalisation of intangible assets	2.2	(9.6)	(19.2)
(Purchase)/Proceeds on disposal of investments		(0. 8)	0.3
Net cash generated from/(used in) investing activities		96.2	(132.4)
Financing activities
Purchase of own shares in EBT		–	(5. 0)
Proceeds on sale of own shares in EBT		4.7	2.2
Payment of principal in relation to lease liabilities	2.10/4.1	(3.9)	(4.7)
Dividends paid to owners of the parent	3.2	(199.2)	(190.4)
Net cash used in financing activities		(198.4)	(197 .9)
Net increase/(decrease) in cash and cash equivalents		24 3.3	(115 .0)
Cash and cash equivalents at beginning of year	2.6	3 73.3	488. 3
Cash and cash equivalents at end of year (including restricted cash)	2.6/4.2	616 . 6	3 73 .3

* For year ended 30 June 2023, we

previously did not show interest income

and interest received separately. In

the prior year there was no difference

between the total income and cash

amount. We have updated the prior

year presentation and as per IAS 7

now show interest income and interest

received separately on the Consolidated

Statement of Cash Flows.

156

Hargreaves Lansdown

Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 4: CONSOLIDATED STATEMENT OF CASH FLOWS

NOTES TO THE GROUP FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF CASH FLOWS CONTINUED

4.1 Lease payments

Cash flows in relation to lease payments, recorded under IFRS 16, are presented as follows in

the Group Statement of Cash Flows:

բ Payments for the principal element of recognised lease liabilities are presented within cash

flows from financing activities; and

բ The interest element of recognised lease liabilities are included within cash flows from

operating activities.

4.2 Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits that are readily

convertible to a known amount of cash, subject to insignificant changes in value and are

considered to be holdings of less than three months or those over which the Group has an

immediate right of recall. The carrying amount of these assets is approximately equal to their

fair value.

Included within cash and cash equivalents are amounts held by the Group which are subject

to restrictions. Restricted cash balances relate to the balances held within the HL Employee

Benefit Trust. They are strictly held for the purpose of purchasing shares to satisfy options

under the Group’s share option schemes. These amounts held are not readily available to be

used for other purposes within the Group and total £0.3 million (2023: £5.3m).

Cash and cash equivalents are also referred to in note 2.6.

157

Hargreaves Lansdown

Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 5: OTHER NOTES

NOTES TO THE GROUP FINANCIAL STATEMENTS

OTHER

5.1 General information

Hargreaves Lansdown plc (the Company and ultimate parent of the Group) is a company

incorporated in England and Wales with company number 02122142 and domiciled in the United

Kingdom under the Companies Act 2006 whose shares are publicly traded on the London Stock

Exchange. The address of the registered office is One College Square South, Anchor Road, Bristol

BS1 5HL, United Kingdom . The nature of the Group’s operations and its principal activities are set

out in the Operating and Financial Review and Strategic Report.

These financial statements are presented in millions of pounds sterling (£m) which is the currency

of the primary economic environment in which the Group operates.

Basis of preparation

These financial statements have been prepared in accordance with UK-adopted international

accounting standards and with the requirements of the Companies Act 2006 as applicable to

companies reporting under those standards.

The financial statements are presented to allow users to understand the primary statements

and the related balances that make them up. It is our aim to ensure that the information provided

is pertinent and indicates balances of most importance, whilst ensuring conformity with IFRS.

In order to do this, we have aligned the notes to the financial statements with the relevant primary

statements; where there is an associated accounting policy, it is denoted by a box presented

at the beginning of the note.

The preparation of financial statements in conformity with IFRS requires the use of certain

significant accounting estimates. It also requires management to exercise its judgement in the

process of applying the Company’s accounting policies. The areas involving a higher degree

of judgement or complexity, or areas where assumptions and estimates are significant to the

financial statements, if any, are disclosed in note 5.2.

Going concern

The financial statements are prepared on a going concern basis and in assessing this the Board

has considered the Group’s and the Company’s ability to continue as a going concern for at least

12 months from the date of signing and by reference to forecasts across the next three financial

years based on the assumptions used in the Group’s planning process. This is in line with the

approach taken in assessing the Group’s viability as stated on page 55.

The Board expects the Group to remain profitable and has no intention or expectation of

liquidating the Group or ceasing trading. In all scenarios and testing of future cash flows, including

the most extreme, the Group and the Company maintains sufficient liquidity and capital to

continue in business, within the timeframes outlined above.

Material uncertainty in relation to going concern

As announced on 9 August 2024, the Board has received a firm offer for the purchase of the

company, subject to shareholder and other approvals including regulatory approval, which it

intends to recommend to shareholders. As a result the Directors do not have certainty on the

future plans for the business, including whether the offer will be approved by shareholders and

gain regulatory approval, the potential timing for transfer to the potential new owners or their

future plans; including any financing arrangements.

These conditions indicate the existence of a material uncertainty which may cast significant

doubt about the Group’s ability to continue as a going concern. Accordingly, the financial

statements do not include the adjustments that would result if the Group were unable to continue

as a going concern.

Notwithstanding this uncertainty, the Directors are satisfied that the going concern basis remains

appropriate for the preparation of the financial statements.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and

subsidiary undertakings controlled by the Group made up to 30 June 2024. The Group controls

a subsidiary when it has power over an investee, is exposed, or has rights, to variable returns

from its involvement with the subsidiary and has the ability to affect those returns through its

power over the investee. The Group reassesses whether it controls a subsidiary when facts and

circumstances indicate that there are changes to one or more elements of control.

The results of subsidiaries acquired or disposed of during the year are included in the

Consolidated Income Statement from the effective date of acquisition or up to the effective date

of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of

subsidiaries to bring the accounting policies used into line with those used by the Group. All intra-

Group transactions, balances, income and expenses are eliminated on consolidation.

Business combinations

The acquisition of subsidiaries is accounted for using the purchase method. The cost of the

acquisition is measured at the aggregate of the fair values, at the date of exchange, of assets

given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for

control of the acquired entity. The acquired entity’s identifiable assets, liabilities and contingent

liabilities that meet the conditions for recognition under IFRS 3 ‘Business Combinations’ are

recognised at their fair value at the acquisition date.

The Group recognises any non-controlling interest in the acquired entity at the non-controlling

interest’s proportionate share of the recognised amounts of the acquired entity’s identifiable

net assets.

Application of new standards

The following standards have been adopted in the current year, but do not have a material impact

on these financial statements:

բ Narrow scope amendments to IAS 1, IAS 8 and IFRS Practice Statement 2

բ Amendments to IAS 12, ‘Taxation’ relating to deferred tax related to assets and liabilities arising

from a single transaction

բ IFRS 17, ‘Insurance contracts’

բ Amendments to IAS 12 – International tax reform – Pillar Two model rules

բ Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors:

Definition of Accounting Estimates

158

Hargreaves Lansdown

Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 5: OTHER NOTES

NOTES TO THE GROUP FINANCIAL STATEMENTS

OTHER CONTINUED

5.1 General information continued

At the date of authorisation of these financial statements, the Group has not applied the following

new and revised IFRS standards that have been issued but are not yet effective:

բ Amendment to IAS 1, ‘Presentation of financial statements’ on classification of liabilities

բ Amendments to IAS 1, ‘Presentation of financial statements’ on non-current liabilities with

covenants

բ Amendment to IAS 7 and IFRS 7 – Supplier finance

բ Amendments to IAS 21 – Lack of Exchangeability

բ Amendment to IFRS 16, ‘Leases’ – Lease Liability in a Sale and Leaseback

բ IFRS 19, Subsidiaries without Public Accountability: Disclosures

The Group has assessed the impact that the above noted standards and amendments will have

on the Group’s results reported in the financial statements. The Directors do not expect that the

adoption of the standards or amendments listed above will have a material impact on the financial

statements of the Group in future periods.

Certain amendments to accounting standards have been published that are not mandatory for the

year ended 30 June 2024 reporting period and have not been early adopted by the Group:

բ IFRS S1 – General requirements for disclosure of sustainability-related financial information

բ IFRS S2 – Climate-related disclosures

բ IFRS 18, ‘Presentation and disclosure in financial statements’

The above amendments are continuing to be assessed for the impact on the Group for future

reporting periods.

Accounting policies

The financial statements have been prepared on the historical cost basis, except for the

revaluation of financial assets at fair value through profit and loss. The principal accounting

policies adopted are set out at the start of each note to which they relate.

5.2 Critical judgements and key sources

of estimation uncertainty

The preparation of the financial statements requires management to make estimates and

assumptions that affect the reported amount of revenues, expenses, assets and liabilities and

the disclosure of contingent liabilities. If, in the future, such estimates and assumptions, which

are based on management’s best judgement at the date of preparation of the financial statements

deviate from actual circumstances, the original estimates and assumptions will be modified as

appropriate in the period in which the circumstances change. There are no assumptions made

about the future, or any other major sources of estimation uncertainty at the end of the reporting

period, that have a significant risk of resulting in a material adjustment to the carrying amounts of

assets and liabilities within the next financial year. There are no critical judgements regarding the

application of accounting policies or significant estimates in relation to the preparation of these

financial statements.

5.3 Contingencies and commitments

Capital commitments

At the end of the reporting period, the Group had no capital commitments (2023: £0.5m)

for software development and IT hardware.

Contingencies

The Group operates in a highly regulated environment and, in the ordinary course of business,

provides information to various regulators and authorities as part of informal and formal requests

and enquiries. In addition, the Group receives complaints or claims in relation to its services from

time to time brought by clients, investors or other third parties. These may be notified to the

Group or directly to third parties, such as the Financial Ombudsman Service in the case of client

and investor complaints investigated and not upheld by the Group. These include enquiries,

complaints and a threatened claim relating to the LF Equity Income Fund (formerly the Woodford

Equity Income Fund).

The Company received a letter purporting to be a pre-action letter from a law firm in March 2021.

In June 2021, the Company rejected all the claims made for lack of a substantive basis of claim.

The Company is aware that the law firm has since filed a claim form with the court against both

Link Fund Solutions Limited and Hargreaves Lansdown Asset Management Limited (“HLAM”) for

an unspecified amount in October 2022. As at the date of issuing these financial statements,

the law firm has not yet confirmed that it has secured sufficient funding to progress the claim,

HLAM has not been served with the claim form and no timetable has been set for the conduct

of any claim.

All such matters are periodically reassessed, with the assistance of external professional advisers

where appropriate, to determine the likelihood of the Group incurring a liability. There are inherent

uncertainties in the outcome of such matters and it is not practicable to reliably estimate the

financial impact, if any, on the Group’s results or net assets at the period end.

These matters have been re-assessed throughout the financial year and the above statement is

accurate as at the reporting date and up to the date of issue.

5.4 Subsidiaries

A list of the investments in subsidiaries included in the consolidated results of Hargreaves

Lansdown plc is shown in note 6.5 to the parent company financial statements. Also included in

the Group consolidated financial statements are ‘The Hargreaves Lansdown Employee Benefit

Trust’ and ‘The Hargreaves Lansdown plc SIP Trust’.

159

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Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 5: OTHER NOTES

NOTES TO THE GROUP FINANCIAL STATEMENTS

OTHER CONTINUED

5.5 Events after the reporting period

On 9 August 2024 the Directors proposed a final ordinary dividend payment of 30.0 pence per

ordinary share, payable on 1 November 2024 to all shareholders on the register at the close of

business on 4 October 2024 as detailed in note 3.2.

On 9 August 2024 as announced and highlighted in note 5.1 the Consortium has announced a firm

offer for the acquisition of the Company and Group, subject to shareholder approval and other

approvals, including regulatory approval.

5.6 Related party transactions

The Company has a related party relationship with its subsidiaries, its Directors and members of

the Executive Committee (the ‘key management personnel’). Transactions between the Company

and its key management personnel are disclosed below. Details of transactions between the

Company and other related parties are also disclosed below.

Trading transactions

The Company entered into the following transactions with Directors within the Hargreaves

Lansdown Group and related parties who are not members of the Group:

During the years ended 30 June 2024 and 30 June 2023 the Company has been party to a lease

with P K Hargreaves, a significant shareholder during the year and former Director, for rental of

the old head office premises at Kendal House. A five-year lease was signed in April 2021 for a

rental of part of the building, to be used for disaster recovery purposes at a market rate rent of

£0.1 million per annum. No amount was outstanding at either year end.

During the years ended 30 June 2024 and 30 June 2023, the Group has provided a range of

investment services in the normal course of business to shareholders on normal third-party

business terms. These amounts are not material.

Directors and staff are eligible for a discount on some of the services provided. These amounts

are not material.

Remuneration of key management personnel

The remuneration of the key management personnel of the Group, being those personnel who

were a member of the Board or Executive Committee during the relevant year shown, is set out

below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.

	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
Short-term employee benefits	8.1	8.1
Post-employment benefits	0.4	0.4
Other long-term benefits	1.7	0.5
Termination benefits	1.0	0.9
Share-based payments	3.7	2.1
	14.9	12.1
Non-Executive Directors’ fees	1.1	1.1

In addition to the amounts above, nine key management personnel (2023: six) received gains of

£2.3 million (2023: £1.0m) as a result of exercising share options. During the year, awards were

made under executive option schemes for eleven key management personnel (2023: nine).

Included within the previous table are the following amounts payable to Executive Directors of the

Company who served during the relevant year. Full details of Directors’ remuneration, including

numbers of share options exercised, are shown in the Directors’ Remuneration Report.

	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
Short-term employee benefits	3.6	2.7
Post-employment benefits	0.1	0.1
Other long-term benefits	1.0	0.2
Share-based payments	2.4	0.6
	7.1	3.6

In addition to the amounts above, Directors of the Company received gains of £0.8 million relating

to the exercise of share options (2023: £0.3m).

160

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Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 5: OTHER NOTES

NOTES TO THE GROUP FINANCIAL STATEMENTS

OTHER CONTINUED

5.6 Related party transactions continued

	Year ended	Year ended
	30 June 2024	30 June 2023
	£m	£m
Emoluments of the highest paid Director	3.8 1	2.5 1

	Number	Number
Number of Directors who exercised share options during the year	2	1
Number of Directors who were members of money purchase
pension schemes	2	2

1 The highest paid Director was the Chief Executive Officer and full details of his emoluments can be found in the audited ‘Remuneration

payable’ table in the Directors’ Remuneration Report

Any amounts outstanding with related parties are unsecured and will be settled in cash.

No guarantees have been given or received in respect of amounts outstanding. No provisions

have been made for doubtful debts in respect of the amounts owed by the related parties.

5.7 Financial instruments

Financial instruments include both assets and liabilities. Financial assets principally comprise trade

and other receivables, cash and cash equivalents and current asset listed investments. Financial

liabilities comprise trade and other payables.

Categories of financial assets and financial liabilities

The categories and carrying value of the financial assets and financial assets held in the Group’s

Statement of Financial Position are summarised in the table. The impact of climate change does

not have a material impact on the fair values of the assets.

		Financial assets and liabilities at	Financial assets		Financial liabilities measured
		fair value through profit and loss	at amortised cost		at amortised cost			Total
	2024	2023	2024	2023	2024	2023	2024	2023
At 30 June	£m	£m	£m	£m	£m	£m	£m	£m
Financial assets
Equity investments	1.2	0.5	–	–	–	–	1.2	0.5
Cash and cash equivalents	–	–	616.6	373.3	–	–	616.6	373.3
Trade and other receivables:
Trade receivables	–	–	619.2	510.3	–	–	619.2	510.3
Other receivables	–	–	6.3	7.6	–	–	6.3	7.6
Accrued income	–	–	158.5	169.0	–	–	158.5	169.0
Term deposits	–	–	20.0	130.0	–	–	20.0	130.0
Total financial assets	1.2	0.5	1,420.6	1,190.2	–	–	1,421.8	1,190.7
Financial liabilities
Trade payables	–	–	–	–	597.7	487.4	5 97.7	487.4
Other payables and current lease liabilities	–	–	–	–	36.1	42.6	36.1	42.6
Lease liabilities	–	–	–	–	4.2	7.6	4.2	7.6
Total financial liabilities	–	–	–	–	638.0	537.6	638.0	537.6

161

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Financial statements

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Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 5: OTHER NOTES

NOTES TO THE GROUP FINANCIAL STATEMENTS

OTHER CONTINUED

5.7 Financial instruments continued

Fair value hierarchy

The table below sets out the classifications of each class of financial asset and liability and their

fair values.

		Level 2
		Directly	Level 3
	Level 1	observable	Inputs not
	Quoted prices	market inputs	based on
	for similar	other than	observable
	instruments	Level 1 inputs	market data	Total
	£m	£m	£m	£m
At 30 June 2024
Financial assets at fair value through profit or loss – listed equities	1.2	–	–	1.2
	1.2	–	–	1.2
At 30 June 2023
Financial assets at fair value through profit or loss – listed equities	0.5	–	–	0.5
	0.5	–	–	0.5

There were no transfers between Level 1 and Level 2 assets during the year (2023: £nil). The fair

value of financial instruments traded in active markets is based on quoted market prices at the

end of the reporting period.

Instruments included in Level 1 comprise primarily equity investments and fund units entered into

on a counterparty basis. As such there is no recurring valuation of financial instruments between

reporting periods.

Nature and extent of risks arising from financial instruments

Financial risk management

The main risks arising from financial instruments are market risk (including interest rate risk,

foreign exchange risk and price risk), liquidity risk and credit risk. Each of these risks is discussed

in detail below.

The Group monitors financial risks on a consolidated basis. The Group’s financial risk management

is based upon sound economic objectives and good corporate practice. No hedging transactions

have taken place during the years presented. The Group has designed a framework to manage

the risks of its business and to ensure that the Directors have in place risk management

practices appropriate to a listed company. The management of risk within the Group is governed

by the Board.

Market risk

բ Interest rate risk

Interest rate risk is the risk that the Group will sustain losses from adverse movements in rates

associated with interest bearing assets and liabilities. There is an exposure to interest rates on

banking deposits held in the ordinary course of business. At 30 June 2024, the value of financial

instruments on the Group Statement of Financial Position exposed to interest rate risk was

£636.6 million (2023: £503.3m) comprising cash, cash equivalents and term deposits.

This exposure is continually monitored to ensure that the Group is maximising its interest earning

potential within accepted liquidity and credit constraints. The Group has no external borrowings

and as such is not exposed to interest rate or refinancing risk on borrowings. Cash at bank,

including restricted cash, earns interest at floating rates based on daily bank deposit rates.

Term deposits are also made for varying periods of between one day and 13 months, depending

on the immediate cash requirements of the Group, and earn interest at the respective fixed term

deposit rates.

Given that a source of revenue is based on the value of client cash under administration, the

Group has an indirect exposure to interest rate risk on cash balances held for clients, the balance

of which was £12,839 million at 30 June 2024 (2023: £13,438m). These amounts are not included

in the Group Statement of Financial Position.

The below is an analysis of the impact of a change of 100bps (1.00%) in interest rates on

the revenue received in relation to client cash. This calculation considers no other impacts on

interest income, it is an isolated adjustment to one input to our revenue stream and as such is not

indicative of a real change. The calculations assume the interest income has been earned evenly

over the period and that rates have changed in isolation in the period. This does not consider any

impact of pass through to clients. 100bps has been chosen, however it is not illustrative of single

movements seen during the current or prior financial year from the Bank of England and it is not

an expectation of actual changes.

		2024
	Change in margin	£m
Net interest income	+100bps (1.00%)	124.0
Net interest income	-100bps (1.00%)	(124.0)

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Financial statements

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Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 5: OTHER NOTES

NOTES TO THE GROUP FINANCIAL STATEMENTS

OTHER CONTINUED

5.7 Financial instruments continued

բ Foreign exchange translation and transaction risk

Foreign currency risk is the risk that the Group will sustain losses through adverse movements

in currency exchange rates. With substantially all of the Group’s businesses currently operating

within the UK, and therefore with minimal net assets and transactions of the Group denominated

in foreign currencies, the Group is not exposed to significant foreign exchange translation or

transaction risk and as such does not hedge any foreign current assets or liabilities.

բ Price risk

Price risk is the risk that a decline in the value of assets adversely impacts on the profitability of

the Group as a result of an asset not meeting its expected value. The Group is exposed to price

risk on investments, in corporate entities, held on the Group Statement of Financial Position.

At 30 June 2024, the fair value of investments recognised on the Group Statement of Financial

Position was £1.2 million (2023: £0.5m). A 20% move in equity prices, in isolation, would have an

impact of £0.2 million (2023: £0.1m).

As a main source of revenue is based on the value of client assets under administration, the Group

has an indirect exposure to price risk on investments held on behalf of clients. These assets are

not on the Group Statement of Financial Position. The risk of lower revenues is partially mitigated

by asset class diversification. The Group does not hedge its revenue exposure to movements in

the value of client assets arising from these risks, and so the interests of the Group are aligned to

those of its clients.

In addition, the Group acts as a private client investment manager, unit trust manager and agency

stockbroker on a matched basis so its exposure to market price movements in this capacity is

limited to when there is a trade mismatch or error, or if one matched counterparty fails to fulfil its

obligations. The impact of these risks is mitigated by limits and monitoring controls.

Liquidity risk

The Group is exposed to liquidity risk, namely the risk that it may be unable to meet its payment obligations as they fall due. The Group is highly cash generative and holds significant liquid assets.

The Group actively maintains a proportion of cash balances on short-term deposit, as well as ensuring the Group has access to short-term revolving credit facilities, to help ensure that the Group has

sufficient available funds for operations.

The table below analyses the maturities of the undiscounted cash flows relating to financial liabilities of the Group based on the remaining period to the contractual maturity date at the end of the

reporting period.

			At 30 June 2024				At 30 June 2023
	0–3 months	3–12 months	Over 1 year	Total	0–3 months	3–12 months	Over 1 year	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Trade and other payables:
Trade payables	597.7	–	–	597.7	487.1	0.1	0.2	487.4
Other payables, including current lease liabilities	35.3	0.8	–	36.1	34.4	–	8.2	42.6
Non-current discounted lease liabilities	–	–	4.2	4.2	–	–	7.6	7.6
	633.0	0.8	4.2	638.0	521.5	0.1	16.0	537.6

Balances due within twelve months, in the table above, equal their carrying balances as the impact of discounting is not significant. Included in the trade and other payables and the lease liabilities

above are figures in respect of leases accounted for under IFRS 16. These include discounted cash flows in relation to leases over property as outlined in note 2.10. The undiscounted maturity profiles

of these amounts are shown on the next page.

163

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Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 5: OTHER NOTES

NOTES TO THE GROUP FINANCIAL STATEMENTS

OTHER CONTINUED

5.7 Financial instruments continued

The undiscounted liability in relation to leases is shown below.

	At	At
	30 June 2024	30 June 2023
	£m	£m
Within one year	4.1	4.6
In the second to fifth years inclusive	4.2	8.3
Total minimum lease payments	8.3	12.9

The Group has access to a revolving credit facility, with a UK bank. The facility allows the Group

to draw up to £75 million (2023: £75m) and is undrawn as at 30 June 2024. The facility incurs

interest charges, consisting of a margin of 0.85% plus SONIA per annum when drawn.

Credit risk

The Group’s credit risk is spread over a large number of counterparties and customers.

The Group is exposed to credit risk from counterparties to securities transactions during the

period between the trade date and the ultimate settlement date if the counterparty fails either

to deliver securities or to make payment. Settlement risk is substantially mitigated as a result of

the delivery versus payment mechanism whereby if a counterparty fails to make payment the

securities would not be delivered to the counterparty. Therefore the risk exposure is to an adverse

movement in market prices between the time of trade and settlement, which is generally two to

four days. Conversely, if a counterparty fails to deliver securities, no payment would be made.

The trade receivables presented in the Statement of Financial Position are net of expected

credit losses.

Also included within trade and other receivables in the Statement of Financial Position are term

deposits. These are deposits with UK licensed banks for a period of three months or greater,

where the Group does not have immediate recall on the cash. The maximum amount of time that

these deposits are outstanding at year end is 12 months.

Cash is held with UK licensed banks. The credit risk on liquid funds is managed by only depositing

with UK regulated banks and the Group takes a conservative approach to treasury management,

carrying out regular reviews of all its banks’ and custodians’ credit ratings.

The following table discloses the Group’s maximum exposure to credit risk on financial assets.

	At	At
	30 June 2024	30 June 2023
	£m	£m
Financial assets at amortised cost
Cash and cash equivalents (including restricted cash)	616.6	373.3
Trade and other receivables	625.5	517.9
Accrued income	158.5	169.0
Term deposits	20.0	130.0
Financial assets at fair value through profit or loss
Financial investments	1.2	0.5
	1,421.8	1,190.7

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Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 5: OTHER NOTES

NOTES TO THE GROUP FINANCIAL STATEMENTS

OTHER CONTINUED

5.7 Financial instruments continued

The following table contains an analysis of financial assets that are past due at the end of the

reporting period. An asset is past due when the counterparty has failed to make a payment when

contractually due and is considered to be a key indicator of risk.

The Group applies the simplified approach to providing for expected credit losses for receivables,

allowing the use of lifetime expected loss provisions to be made. To determine expected credit

losses, financial assets have been grouped based on shared credit risk characteristics, such as

the counterparty and the number of days past due.

		0–3	3–6	6–12	Over 12
	Within	months	months	months	months
	terms	past due	past due	past due	past due	Total
	£m	£m	£m	£m	£m	£m
At 30 June 2024
Trade and other receivables:
Trade receivables	608.9	5.6	1.4	1.1	2.2	619.2
Other receivables	6.3	–	–	–	–	6.3
Accrued income	158.5	–	–	–	–	158.5
Term deposits	20.0	–	–	–	–	20.0
	793.7	5.6	1.4	1.1	2.2	804.0
At 30 June 2023
Trade and other receivables:
Trade receivables	501.6	3.3	1.8	1.8	1.8	510.3
Other receivables	7.6	–	–	–	–	7.6
Accrued income	169.0	–	–	–	–	169.0
Term deposits	130.0	–	–	–	–	130.0
	808.2	3.3	1.8	1.8	1.8	816.9

During the year, the Group has recognised £1.2m of expected credit losses (2023: £0.1m)

in respect of receivables that are not expected to be recovered. At the end of the reporting

period, £0.2 million (2023: £0.2m) of expected credit losses are recognised in respect of trade

receivables. These balances have been provided for in full against the value of aged receivables

and are presented net in the table above and in the Statement of Financial Position. As a result,

the carrying amount of those receivables is £nil (2023: £nil) at year end.

The expected credit loss in relation to receivables is considered to be immaterial, due to the

short-term nature of the receivable balance and the small value of assets that are outstanding

for long periods, without any potential recourse allowing the Group to reclaim the balance in full.

The majority of balances are related to underlying investments that the Group can sell to reclaim

losses and therefore, while they are susceptible to macroeconomic factors the potential impact

is immaterial given their short-term nature, as market balances are generally settled in two to

four days.

The table on the next page shows the credit quality of financial assets that are current and not

outstanding using the following counterparty grading:

բ Financial institutions

In respect of trade receivables, £170.5 million (2023: £116.9m) is due from financial institutions

regulated by the FCA or PRA in the course of settlement as a result of daily trading. Accrued

income includes £124.8 million related to interest due from financial institutions regulated by the

FCA and PRA. A further £4.9 million (2023: £10.9m) relates to revenue items due from financial

institutions regulated by the FCA.

բ Individuals

In respect of trade receivables, the balance is related to amounts due from individual clients in the

course of settlement as a result of daily trading. Daily trading balances generally settle in two to

four days.

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Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 5: OTHER NOTES

NOTES TO THE GROUP FINANCIAL STATEMENTS

OTHER CONTINUED

5.7 Financial instruments continued

The table below shows the credit category of financial assets that are within terms and

considered the lowest level of risk.

	Financial	Corporate
	institutions	clients	Individuals	Total
	£m	£m	£m	£m
At 30 June 2024
Trade receivables	188.7	–	420.2	608.9
Other receivables	6.3	–	–	6.3
Accrued income	132.7	–	25.8	158.5
Term deposits	20.0	–	–	20.0
Investments held at fair value through profit and loss	1.2	–	–	1.2
	348.9	–	446.0	794.9
At 30 June 2023
Trade receivables	133.3	0.4	367.9	501.6
Other receivables	7.6	–	–	7.6
Accrued income	146.0	–	23.0	169.0
Term deposits	130.0	–	–	130.0
Investments held at fair value through profit and loss	0.5	–	–	0.5
	417.4	0.4	390.9	808.7

Other risks

Inflation risk

Inflation risk is the risk that the Group will sustain losses due to a high inflationary environment.

Our exposure to inflation risk is considered to mostly impact staff costs and support costs.

The current levels of inflation seen in the market do not have a material impact on the

financial statements.

Climate risk

We have assessed our exposure to climate risks and opportunities and undertaken scenario

analysis. At the present time there is no material impact of climate-related risks on the

financial statements.

Capital management

The Group’s objectives when managing capital are: i) to safeguard the Group’s ability to continue

as a going concern so that it can continue to provide returns for shareholders and benefits for

other stakeholders; ii) to maintain a strong capital base and utilise it efficiently to support the

development of its business; and iii) to comply with the regulatory capital requirements set

by the FCA. Capital adequacy and the use of regulatory capital are monitored by the Group’s

management and Board.

Capital management – Unaudited

Regulatory capital is determined in accordance with the requirements prescribed in the UK

by the FCA. This is a two-step process requiring an assessment of the minimum capital

requirements followed by an assessment of individual entity and Group risks of harm to ensure

that an additional amount of capital is held above the minimum amount to accommodate the

impact of any residual risk of harm.

Minimum capital requirements are calculated as the higher of certain baseline variables

(depending on the specific requirements for the legal entity in question). In Hargreaves

Lansdown Asset Management Limited (HLAM) this is calculated as the higher of the

permanent minimum capital requirement, fixed overhead requirement and k-factor assessment

(capital requirement based on the activities a firm undertakes), and in Hargreaves Lansdown

plc it is the group capital test which is the book value that the parent company has invested in

the underlying entities.

The second step requires investment firms to assess firm-specific and Group risk of harms,

and costs of wind down, ensuring that they hold adequate capital over and above the amount

set by the minimum capital requirements. The Group completes this assessment of regulatory

capital requirements using its Group Internal Capital Adequacy and Risk Assessment process,

which is a continuous and forward-looking exercise that includes stress testing on major risks,

such as a significant market downturn, and identifying mitigating actions.

The Group manages its retained earnings and share capital which total £816.5 million (audited)

as at 30 June 2024 (2023: £717.1m – audited). Consistent with FCA requirements, HLAM

specifically is required to disclose regulatory capital information; this will be available on the

Group’s website at www.hl.co.uk/investor-relations.

166

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Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 6: COMPANY FINANCIAL STATEMENTS

PARENT COMPANY STATEMENT OF FINANCIAL POSITION

As at 30 June 2024

Note

30 June 2024

£m

30 June 2023

£m

ASSETS

Non-current assets

Investments in subsidiaries 6.5 108.7 90.9

108.7 90.9

Current assets

Trade and other receivables 6.6 232.7 133.8

Cash and cash equivalents 6.7 327.1 121.0

559.8 254.8

Total assets 668.5 345.7

LIABILITIES

Current liabilities

Trade and other payables 6.8 212.4 22.5

212.4 22.5

Net current assets 347.4 232.3

Total liabilities 212.4 22.5

Net assets 456.1 323.2

EQUITY

Called up share capital 6.9 1.9 1.9

Retained earnings 6.9 454.2 321.3

Total equity 456.1 323.2

The Company recorded a profit for the financial year ended 30 June 2024 of £322.2 million (2023: £265.7m).

The financial statements of Hargreaves Lansdown plc, registered number 02122142, on pages 166 to 172, were approved by the Board and authorised for issue on 14 August 2024.

Amy Stirling

Chief Financial Officer

167

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Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 6: COMPANY FINANCIAL STATEMENTS

PARENT COMPANY STATEMENT OF CHANGES IN EQUITY

For the year ended 30 June 2024

capital

£m

Retained

earnings

£m

Total

equity

£m

At 1 July 2022 1.9 238.9 240.8

Profit and total comprehensive income – 265.7 265.7

Increase in investment in subsidiaries – 7.1 7.1

Dividend paid – (190.4) (190.4)

At 30 June 2023 1.9 321.3 323.2

Profit and total comprehensive income – 322.2 322.2

Increase in investment in subsidiaries – 9.9 9.9

Dividend paid – (199.2) (199.2)

At 30 June 2024 1.9 454.2 456.1

Details of the Company’s dividends are as set out in note 3.2 to the consolidated financial statements.

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Financial statements

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Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 6: COMPANY FINANCIAL STATEMENTS

NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS

6.1 General information

Hargreaves Lansdown plc (the Company) is a company incorporated and domiciled in the

United Kingdom under the Companies Act 2006 whose shares are publicly traded on the

London Stock Exchange. The address of the registered office is One College Square South,

Anchor Road, Bristol BS1 5HL, United Kingdom. The Company is the parent company of the

Group, and the nature of the Group’s operations and its principal activities are set out in the

Operating and Financial Review.

The Company financial statements are presented in millions of pounds sterling which is the

currency of the primary economic environment in which the Company operates.

Basis of preparation

The Company financial statements of Hargreaves Lansdown plc have been prepared in

accordance with Financial Reporting Standard 101, ‘Reduced Disclosure Framework’ (‘’FRS

101’’). The financial statements have been prepared under the historical cost convention and in

accordance with the Companies Act 2006. The Company is a qualifying entity under FRS101, as

it is a member of a group where the parent of that group prepares publicly available consolidated

financial statements which are intended to give a true and fair view (of the assets, liabilities,

financial position and profit or loss) and that member is included in the consolidation. The

Company prepares and is itself included in the consolidated statements on pages 136 to 165.

The Company has moved to preparing the financial statements under FRS 101 to take advantage

of reduced disclosure requirements, as the activity of the Company is limited in comparison to

that of the Group.

In the prior year, year ended 30 June 2023, the Company financial statements were prepared

in accordance with UK-adopted International Financial Reporting Standards (IFRS) and with the

requirements of the Companies Act 2006 as applicable to companies reporting under those

standards. No restatements are required and there is no change in accounting policies.

The preparation of financial statements in conformity with FRS 101 requires the use of certain

significant accounting estimates. It also requires management to exercise its judgement in the

process of applying the Company’s accounting policies. The areas involving a higher degree

of judgement or complexity, or areas where assumptions and estimates are significant to the

financial statements, if any, are disclosed in note 6.3.

Financial Reporting Standard 101 – reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions under FRS 101:

բ the requirements of paragraphs 45(b) and 46–52 of IFRS 2 Share based payments

բ the requirements of IFRS 7 Financial Instruments: Disclosures

բ the requirements of paragraphs 91–99 of IFRS 13 Fair Value Measurement

բ the requirement in paragraph 38 of IAS 1 ‘Presentation of Financial Statements’ to present

comparative information in respect of:

– paragraph 79(a)(iv) of IAS 1

բ the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111

and 134–136 of IAS 1 Presentation of Financial Statements

բ the requirements of IAS 7 Statement of Cash Flows

բ the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting

Estimates and Errors

բ the requirements in IAS 24 Related Party Disclosures to disclose related party transactions

entered into between two or more members of a group, provided that any subsidiary which is a

party to the transaction is wholly owned by such a member

բ the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d)–134(f) and 135(c)–135(e) of IAS 36

Impairment of Assets.

The Company financial statements are prepared on a going concern basis. The Directors believe

that they have a reasonable expectation that the Company has adequate resources to continue

in operational existence for 12 months from the date the financial statements are adopted.

Please see note 5.1 to the consolidated financial statements on page 158.

The financial statements have been prepared on the historical cost basis. Accounting policies

have been applied consistently throughout the current and prior financial year.

6.2 Significant accounting policies

The accounting policies of the Company are the same as those of the Group which are set out in

the relevant notes to the consolidated financial statements, except that it has no policy in respect

of consolidation and investments in subsidiaries are carried at historical cost, less any provisions

for impairment.

6.3 Critical judgements and key sources of estimation

uncertainty

As noted in note 5.2 to the Group financial statements, the preparation of the financial statements

requires management to make estimates and assumptions that affect the reported amount of

revenues, expenses, assets and liabilities and the disclosure of contingent liabilities. There are no

critical judgements used in the preparation of the Company’s financial statements.

The estimates on the following page are made in respect of the Company financial statements only.

Investments in subsidiaries

The Company made significant investments in Hargreaves Lansdown Savings Limited to assist in

the development of the Active Savings proposition and Hargreaves Lansdown Advisory Services

Limited to support the development of the Advice proposition. The parent company holds these

investments at cost less accumulated impairment. An assessment is made of the recoverable

amounts, which requires estimation of future cash flows and fair values at appropriate discount

rates and multiples for the purpose of calculation; the uncertainty comes mainly from the discount

rates and fair value multiples used in the recoverable amount valuations. A sensitivity analysis of

this estimate is presented in note 6.5.

169

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Report and Financial Statements 2024

Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 6: COMPANY FINANCIAL STATEMENTS

NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS CONTINUED

6.4 Profit for the year

As permitted by Section 408 of the Companies Act 2006, no Income Statement or Statement

of Comprehensive Income is presented for the Company. The Company recorded a profit for the

financial year ended 30 June 2024 of £322.2 million (2023: £265.7m).

The auditors’ remuneration for audit and other services is disclosed in note 1.4 to the consolidated

financial statements.

6.5 Investment in subsidiaries

Investments in subsidiaries are held at cost less impairment, being the fair value of

consideration paid and capital contributions made to the subsidiaries less impairment.

Impairment assessments are performed at least on an annual basis for all subsidiaries

to assess whether the valuation is still appropriate. A comparison is made between the

recoverable amount and the carrying value. This requires the calculation of either the fair

value, less costs to sell of each subsidiary or the value in use. Value in use is calculated as

the present value of discounted cash flows over an appropriate period at a discount rate

appropriate for each subsidiary, fair value is calculated based on a multiple of revenues.

Any losses are recognised immediately in the Income Statement.

Year ended

30 June 2024

£m

Year ended

30 June 2023

£m

Investments in subsidiaries

At beginning of year 90.9 68.9

Capital contribution to subsidiaries 9.8 16.9

Reversal of impairment in subsidiary valuation 8.0 15.9

Impairment of subsidiary valuation – (10.8)

At end of year 108.7 90.9

Comprising

Non-current investments – investments in subsidiaries valued

at cost less impairment 108.7 90.9

In the financial year ended 30 June 2020, the Company impaired its holding in Hargreaves

Lansdown Savings Limited (HLS) and subsequent impairment has also taken place. Changes

in the interest rate environment have led to profitability in the current period and for the future

forecast period that significantly changes the valuation determined. The amount was determined

by calculation of the recoverable amount, using future cash flows at a pre-tax discount rate of

14.7%. The carrying amount after reversing the impairment was £45.0 million (2023: £39.9m).

The Company has also invested in Hargreaves Lansdown Advisory Services Limited and in the

prior year impaired its investment by £10.8 million. In the current year we have reviewed the

forecast cash flows and future revenues of the business on both a discounted cash flow basis

and a fair value less costs to sell basis, in accordance with IAS 36. The recoverable amount,

considered the higher of value in use or fair value has been determined to be £9.0 million and

as a result we have reversed impairment of £3 million. The fair value is determined with reference

to a fair value using appropriate multiples with reference to relevant peers.

Sensitivity analysis

The valuations for HLS are performed over a range of pre-tax discount and growth rates,

between 10.4% and 14.7% for HLS with value in use calculations providing support for the new

valuations. The assessment of the company takes place over a maximum of five years in line

with the requirements of IAS 36, the forecast cash flows are determined with reference to the

Board approved operating plans for the company. Growth for revenue and costs is in line with the

forecasts of the Group and a range of growth rates has been considered with 2% being chosen

as appropriate.

Over the range of inputs and assumptions as outlined above the valuations arrived at have been

considered for their appropriateness for recoverable amount and it is considered appropriate to

use the valuations as outlined in the previous section. Valuation of Hargreaves Lansdown Savings

Limited has a lower limit that exceeds the valuation of £45.0 million, being equivalent to cost.

Sensitivity analysis is provided below:

Discount rate Valuation

+0.1% (1.3)

-0.1% 1.3

For Hargreaves Lansdown Advisory Services Limited the fair value method has been prepared

over a range of multiples of revenue and assets under administration, across both transactional

and recurring revenue streams. Multiples between 0.5 and 1.5 times revenues have been

considered and 0.5% of assets under administration have been considered. We have determined

the appropriate valuation is the average of our current year range, less costs to sell ranging

between 2.5% and 5.0%. The range of valuations considered is between £8.0 million and

£10.8 million. This highlights there is not a material sensitivity to the inputs.

170

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Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 6: COMPANY FINANCIAL STATEMENTS

NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS CONTINUED

6.5 Investment in subsidiaries continued

A list of the investments in subsidiaries is shown below, along with their country of incorporation and principal activity. Unless otherwise disclosed below, all subsidiaries have one ordinary class of

share only and all shares are held by Hargreaves Lansdown plc.

Subsidiary

company name

Country of

incorporation

and principal

place of business

Company

purpose/function

Percentage

ownership

Voting

rights

Hargreaves Lansdown Advisory Services Limited UK

Advisory services 100% 100%

Hargreaves Lansdown Asset Management Limited UK

Unit trust and equity broking, investment fund

management, life and pensions consultancy

100% 100%

Hargreaves Lansdown Fund Managers Ltd. UK

Unit trust management 100% 100%

Hargreaves Lansdown Stockbrokers Ltd UK

Dormant company* 100% 100%

Hargreaves Lansdown (Nominees) Limited

(100% shares held by Hargreaves Lansdown Asset Management Limited)

Nominee services* 100% 100%

Hargreaves Lansdown Insurance Brokers Limited UK

Dormant company* 100% 100%

Hargreaves Lansdown Investment Management Limited

(100% shares held by Hargreaves Lansdown Fund Managers Ltd)

Dormant company* 100% 100%

Hargreaves Lansdown Savings Limited UK

Cash services 100% – Ordinary 100%

100% – Class A

Hargreaves Lansdown Savings (Nominees) Limited

(100% shares held by Hargreaves Lansdown Savings Limited)

Nominee services* 100% 100%

Hargreaves Lansdown Pensions Limited

(100% shares held by Hargreaves Lansdown Advisory Services Limited)

Dormant company* 100% 100%

Hargreaves Lansdown Pensions Trustees Limited UK

Trustee of the HL SIPP* 100% 100%

Hargreaves Lansdown EBT Trustees Limited UK

Trustee of the Employee Benefit Trust

†

100% 100%

Hargreaves Lansdown Trustee Company Limited UK

Trustee of the Share Incentive Plan

†

100% 100%

HL Tech Sp. Z O. O

(100% shares held by Hargreaves Lansdown Asset Management Limited)

Poland

Service company 100% 100%

* Exempt from the requirements for audit under s394A and s448A of the Companies Act 2006.

† Exempt from the requirement for audit under s479A of the Companies Act 2006.

1 Registered address One College Square South, Anchor Road, Bristol, BS1 5HL.

2 Registered address Pl Europejski, 1 Warsaw 00-844, Poland.

171

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Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 6: COMPANY FINANCIAL STATEMENTS

NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS CONTINUED

6.6 Trade and other receivables

30 June 2024

£m

30 June 2023

£m

Financial assets

Amounts receivable from subsidiaries and EBT 212.1 1.2

Term deposits 20.0 130.0

232.1 131.2

Non-financial assets

Prepayments 0.6 2.6

232.7 133.8

Movement in amounts receivable from subsidiaries and EBT relates to Group cash management.

Term deposits are held by the Company on unbreakable terms greater than three months and are

classified as financial assets.

The Company applies the simplified approach to providing for expected credit losses for

receivables, allowing the use of lifetime expected loss provisions to be made. To determine

expected credit losses, financial assets have been grouped based on shared credit risk

characteristics, such as the counterparty and the number of days past due. The value of

expected credit losses on the assets subject to credit risk is immaterial.

6.7 Cash and cash equivalents

30 June 2024

£m

30 June 2023

£m

Cash and cash equivalents

Company cash and cash equivalent balances 327.1 121.0

Cash and cash equivalents comprise cash and institutional cash funds with near instant access.

No disclosures for financial instruments have been made in respect of the Company as the only

significant financial instruments held by the Company are cash and term deposit balances as

shown above.

6.8 Trade and other payables

30 June 2024

£m

30 June 2023

£m

Financial liabilities

Amounts payable to subsidiaries 211.8 22.1

Other payables – 0.1

211.8 22.2

Non-financial liabilities

Accruals 0.6 0.3

212.4 22.5

Amounts payable to subsidiaries comprise short-term borrowing from subsidiaries, repayable on

demand. The fair values of amounts owed to subsidiaries are equal to their carrying amounts.

6.9 Called up share capital

Details of the Company’s share capital are as set out in note 3.1 to the consolidated financial

statements. The Company has a share premium account that represents the difference between

the issue price and the nominal value of shares issued and was unchanged at £8,000 throughout

the 2023 and 2024 financial years.

The Company has a capital redemption reserve that relates to the repurchase and cancellation

of the Company’s own shares and was unchanged at £12,000 throughout the 2023 and 2024

financial years.

Details of the movements in retained earnings are set out in the Parent Company Statement of

Changes in Equity.

172

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Financial statements

Strategic report 1

Governance 59

Financial statements

Independent Auditors’ Report 129

Section 1: Results for the Year 136

Section 2: Assets and Liabilities 145

Section 3: Equity 153

Section 4: Consolidated Statement

of Cash Flows 155

Section 5: Other Notes 157

Section 6: Company Financial Statements 166

Other information 173

SECTION 6: COMPANY FINANCIAL STATEMENTS

NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS CONTINUED

6.10 Related party transactions

The key management personnel of the Company are the Directors of Hargreaves Lansdown plc.

The relevant disclosures are given in note 5.6 to the consolidated financial statements. These

are the only staff costs incurred by the Company in the year. The Company has two employees

(2023: two), being the Executive Directors. The cost of providing share scheme benefits to the

employees of the subsidiaries is not charged directly to the subsidiaries. Instead, the Company

provides a capital contribution to its subsidiaries in respect of these schemes.

Any amounts outstanding with related parties are unsecured and will be settled in cash.

No guarantees have been given or received in respect of amounts outstanding. Immaterial expected

credit losses have been recognised in respect of the amounts owed by the related parties.

6.11 Events after the reporting period

Events after the reporting period are shown in note 5.5 of the consolidated financial statements

on page 159.

173

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Other information

OTHER

INFORMATION

Directors, company secretary,

advisers and shareholder information 174

Five-year summary 175

Glossary of alternative financial

performance measures 176

Glossary of terms 179

174

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Report and Financial Statements 2024

Other information

Strategic report 1

Governance 59

Financial statements 128

Other information

Directors, company secretary,

advisers and shareholder information 174

Five-year summary 175

Glossary of alternative financial

performance measures 176

Glossary of terms 179

DIRECTORS, COMPANY SECRETARY, ADVISERS AND SHAREHOLDER INFORMATION

Executive Directors

Dan Olley

Amy Stirling

Non-Executive Directors

Andrea Blance

Adrian Collins

Penny James

Moni Mannings

Michael Morley

Alison Platt

Darren Pope

John Troiano

Company Secretary

Claire Chapman

Independent auditors

PricewaterhouseCoopers LLP, London

Solicitors

Freshfields Bruckhaus Deringer LLP, London

Principal bankers

Lloyds Bank Plc,

Bristol

Brokers

Barclays Bank PLC

Numis Securities Limited

Registrars

Equiniti Limited

Registered office

One College Square South

Anchor Road

Bristol BS1 5HL

Website

www.hl.co.uk

Company number

02122142

175

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Report and Financial Statements 2024

Other information

Strategic report 1

Governance 59

Financial statements 128

Other information

Directors, company secretary,

advisers and shareholder information 174

Five-year summary 175

Glossary of alternative financial

performance measures 176

Glossary of terms 179

FIVE-YEAR SUMMARY

2024

£m

2023

£m

2022

£m

2021

£m

2020

£m

Unaudited Unaudited Unaudited Unaudited Unaudited

Revenue 764.9 735.1 583.0 631.0 550.9

Fair value gains on derivatives – – – 0.6 1.7

Operating costs (398.2) (350.7) (313.0) (266.0) (214.9)

Operating profit 366.7 384.4 270.0 365.6 337.7

Finance income 30.2 19.0 – 1.4 2.8

Finance costs (0.6) (0.7) (0.8) (1.0) (1.0)

Other gains

– – – – 38.8

Profit before tax 396.3 402.7 269.2 366.0 378.3

Tax (103.1) (79.0) (53.4) (69.7) (65.1)

Profit after tax 293.2 323.7 215.8 296.3 313.2

Non-controlling interests – 0.1 0.5 0.4 (0.1)

Profit for the financial year attributable to owners of the parent company 293.2 323.8 216.3 296.7 313.1

Equity shareholders’ funds 815.1 709.7 575.1 593.5 558.3

Weighted average number of shares for the purposes of diluted EPS (million) 475.2 474.6 474.5 474.5 475.70

Pence Pence Pence Pence Pence

Equity dividends per share paid during year 42.00 40.1 50.8 55.6 42.9

Basic earnings per share 61.9 68.3 45.6 62.6 66.1

Diluted earnings per share 61.7 68.2 45.6 62.5 65.9

Underlying basic earnings per share 71.2 74.4 50.4 62.6 57.9

Underlying diluted earnings per share 71.0 74.3 50.4 62.5 57.8

1 Relates to a one-off gain on the disposal of Funds Library in the year ended 30 June 2020.

176

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Report and Financial Statements 2024

Other information

Strategic report 1

Governance 59

Financial statements 128

Other information

Directors, company secretary,

advisers and shareholder information 174

Five-year summary 175

Glossary of alternative financial

performance measures 176

Glossary of terms 179

GLOSSARY OF ALTERNATIVE FINANCIAL PERFORMANCE MEASURES

Measure Definition Why we use this measure

Underlying activity costs Underlying cost related to stockbroking, financial services costs and marketing

costs on a transactional basis related to the volume of activity undertaken by

our clients.

This has been amended in the period to provide visibility of the costs that

are associated with both client numbers and transactional volumes, to allow

comparison from year to year.

Dividend per share

(pence per share)

Total dividend payable relating to a financial year divided by the total number

of shares eligible to receive a dividend. Note: ordinary shares held in the

Hargreaves Lansdown Employee Benefit Trust have agreed to waive all

dividends (see note 3.2 to the consolidated financial statements).

Dividend per share is pertinent information to shareholders and investors

and provides them with the ability to assess the dividend yield of Hargreaves

Lansdown plc shares.

Underlying people costs Underlying cost related to staff, the main driver of cost in our business. People costs are our largest cost category and our people are the key driver of

our business and our strategy.

Platform growth The net value of new assets brought onto the platform less assets leaving the

platform, excluding cash placed with Active Savings.

Provides the most useful measure of tracking, over time, the element of net

new business that is made up of assets brought onto the platform.

Net movement to Active Savings The net value of assets moving from the HL platform to Active Savings. Separated out from platform growth to highlight the change in asset mix within

the business and the retention provided by Active Savings.

Active Savings growth The net value of new cash placed with Active Savings. Provides the most useful measure of tracking, over time, the element of net

new business that is made up of cash brought into Active Savings.

Market growth and other The underlying market movement and other retained investment income,

including dividends reinvested on behalf of clients.

Provides the best measure for highlighting changes in the AUA that are not

directly impacted by client activity.

Net interest margin (bps) Revenue from cash divided by the average value of cash under administration,

net of interest received by clients.

Provides the most comparable means of tracking, over time, the margin

earned on the cash under administration after considering the amount

received by clients.

Revenue margin (bps) Total revenue divided by the average value of assets under administration

which includes the Portfolio Management Services assets under management

held in funds on which a platform fee is charged.

Provides the most comparable means of tracking, over time, the margin

earned on the assets under administration and is used by management to

assess business performance.

Revenue margin from cash (bps) Revenue from cash (net interest earned on the value of client money held on

the platform divided by the average value of assets under administration held

as client money).

Provides a means of tracking, over time, the margin earned on cash held by

our clients.

Revenue margin from funds (bps) Revenue derived from funds held by clients (platform fees, initial commission

less loyalty bonus) divided by the average value of assets under administration

held as funds, which includes the Portfolio Management Services assets under

management held in funds on which a platform fee is charged.

Provides the most comparable means of tracking, over time, the margin

earned on funds held by our clients.

Revenue margin from HL Funds

(bps)

Management fees derived from HL Funds (but excluding the platform fee)

divided by the average value of assets held in the HL Funds.

Provides a means of tracking, over time, the margin earned on HL Funds.

Revenue margin from shares

(bps)

Revenue from shares (stockbroking commissions, management fees where

shares are held in a SIPP or ISA, less the cost of dealing errors) divided by the

average value of assets under administration held as shares.

Provides a means of tracking, over time, the margin earned on shares held by

our clients.

177

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Other information

Strategic report 1

Governance 59

Financial statements 128

Other information

Directors, company secretary,

advisers and shareholder information 174

Five-year summary 175

Glossary of alternative financial

performance measures 176

Glossary of terms 179

GLOSSARY OF ALTERNATIVE FINANCIAL PERFORMANCE MEASURES

CONTINUED

Measure Definition Why we use this measure

Strategic investments costs The total cost (excluding capitalisation), of the Strategic Investment

Programme including staff and professional fees relating to the planning,

commencement and undertaking of the digital technology strategy, strategic

growth initiatives and the cost of expanding associated compliance,

infrastructure and support functions.

Costs relating to the planning and commencement and undertaking of the

digital technology strategy and core growth initiatives, which include staff

costs, professional fees and technology costs, that are considered separately

to reflect the impact on the results of the Group.

Underlying support costs Underlying support costs includes costs previously known as legal and

professional fees and office running costs, including operating lease rentals.

Also included in underlying support costs are depreciation of owned plant and

equipment, amortisation of other intangible assets and impairment.

Provides an assessment of our other costs.

Underlying technology costs Costs associated with the use of third-party software and data feeds used in

the performance of daily business.

Provides a means of understanding the impact that increasing or changing our

proposition has on our costs.

Assets under administration

(AUA)

This is the value of all assets administered or managed by Hargreaves

Lansdown on behalf of its clients.

Assets under administration provides a measure of the growth and strength

of the business on a comparable basis. It is also a key driver of revenue,

especially with respect to ongoing revenue.

Net new business (NNB) Represents subscriptions, cash receipts, cash and stock transfers in less cash

withdrawals, cash and stock transfers out.

Net new business provides a clear indication of how assets under

administration changes over time it separates those movements in AUA that

are related to client movements and those that are market related.

Underlying basic earnings

per share

Underlying profit after tax divided by the weighted average number of ordinary

shares for the purposes of basic EPS.

The calculation of basic earnings per share using statutory profit after

tax adjusted for those costs that are related specifically to our strategic

investments.

Underlying costs Operating costs less strategic investment costs, intangible impairment and

restructuring costs.

In the prior year this also excluded “dual running costs”, this phrasing is no

longer used, but there is no change in calculation.

Provides relevant information on the year-on-year cost of the underlying

business as we go through a period of significant strategic investment.

Underlying diluted earnings

per share

Underlying profit after tax divided by the weighted average number of ordinary

shares for the purposes of diluted EPS.

The calculation of diluted earnings per share using statutory profit after

tax adjusted for those costs that are related specifically to our strategic

investments.

Underlying profit after tax Profit after tax attributable to equity holders of the parent company excluding

Strategic investment costs, intangible impairment and restructuring costs.

In the prior year this also excluded “dual running costs”, this phrasing is no

longer used, but there is no change in calculation.

Profit after tax includes costs that are part of strategic planning and

development. This measure helps to provide clarity between the profit of the

business from period to period when those costs are not considered. This is

important as we go through a period of significant strategic investment.

Underlying profit before tax Profit before tax excluding strategic investment costs, intangible impairment

and restructuring costs.

In the prior year this also excluded “dual running costs”, this phrasing is no

longer used, but there is no change in calculation.

Provides the best measure for comparison of profit before tax of the

underlying business performance as we go through a period of significant

strategic investment.

178

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Other information

Strategic report 1

Governance 59

Financial statements 128

Other information

Directors, company secretary,

advisers and shareholder information 174

Five-year summary 175

Glossary of alternative financial

performance measures 176

Glossary of terms 179

GLOSSARY OF ALTERNATIVE FINANCIAL PERFORMANCE MEASURES

CONTINUED

Measure

Measure per

Operating

and Financial

Review

£m

Measure per

Financial

Statements

£m

Difference

£m Explanation

Underlying activity costs 53.6 53.6 – This measure is the same as the activity costs figures within note 1.3.

Underlying people costs 179.9 203.0 23.1 Equivalent to staff costs figure within note 1.3, less strategic investment costs and restructuring costs totalling

£23.1 million.

Underlying support costs 51.8 87.7 35.9 The measure is the same as support costs, within note 1.3, plus depreciation, amortisation and impairment and

excluding strategic investment costs of £21.5 million and impairment costs of £14.4 million

Underlying technology costs 48.2 48.9 0.7 Technology costs per note 1.3, less strategic investment costs of £0.7 million.

Underlying costs 338.5 398.2 59.7 Operating costs per note 1.3 less £59.7 million of strategic investment costs, intangible impairment and restructuring

costs.

Underlying profit after tax 337.4 293.2 44.2 Profit after tax per the Statement of Comprehensive Income after adding back strategic investment costs, impairment

of intangible assets, restructuring costs and adjusting for a tax shield effect, as shown on page 25.

Underlying profit before tax 456.0 396.3 59.7 Profit before tax per the Statement of Comprehensive Income after adding back strategic investment costs,

impairment of intangible assets and restructuring costs as shown on page 25.

179

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Other information

Strategic report 1

Governance 59

Financial statements 128

Other information

Directors, company secretary,

advisers and shareholder information 174

Five-year summary 175

Glossary of alternative financial

performance measures 176

Glossary of terms 179

GLOSSARY OF TERMS

AGM Annual General Meeting

AIFMD Alternative Investment Fund Managers

Directive

Asset retention rate Based on the monthly lost

AUA as a percentage of the opening month’s

AUA and averaging for the year

AUM Assets Under Management is the value of

all assets managed by Hargreaves Lansdown

Fund Managers

AWS Amazon Web Services

Basic EPS Basic earnings per share

Board The Board of Directors of Hargreaves

Lansdown plc

BRC Board Risk Committee

CASS Client Assets Sourcebook

CDP Carbon Disclosure Project

Client retention rate Based on the monthly lost

clients as a percentage of the opening month’s

total clients and averaging for the year. A lost

client is deemed as one who falls below a

holding of £100

CMD Capital Markets Day

CODM Chief Operating Decision Maker

Company Hargreaves Lansdown plc

Corporate Schemes This related to HL

Workplace Solutions which allow employers

to offer the benefits of the Hargreaves

Lansdown Vantage service to employees via

the workplace

CSR Corporate Social Responsibility

D2C Direct-to-consumer

DEFRA Department for Environment, Food &

Rural Affairs

Diluted EPS Diluted earnings per share

DR Disaster Recovery

DTR The FCA’s Disclosure Guidance and

Transparency Rules sourcebook

EBT Employee Benefit Trust

ERC Executive Risk Committee

ESG Environmental, social and governance

ExCo Executive Committee

FATCA Foreign Account Tax Compliance Act

FCA Financial Conduct Authority, regulator of

the UK financial services industry

FRC Financial Reporting Council

FSCS Financial Services Compensation

Scheme

FTE Full-time equivalent employees

GAAP Generally Accepted Accounting

Principles

GAYE Give As You Earn

GCRO The Group Chief Risk Officer

Group Hargreaves Lansdown plc and its

controlled entities

HL Hargreaves Lansdown

HMRC His Majesty’s Revenue and Customs

IAS International Accounting Standards

IBS Important Business Services

ICAAP Internal Capital Adequacy Assessment

Process

ICARA Internal Capital Adequacy and

Risk Assessment

IFPR Investment Firm Prudential Regime

IFRS International Financial Reporting

Standards

IPO Initial Public Offering

ISA Individual Savings Account

ISSB International Sustainability

Standards Board

IT Information Technology

KPI Key Performance Indicator

180

Hargreaves Lansdown

Report and Financial Statements 2024

Other information

Strategic report 1

Governance 59

Financial statements 128

Other information

Directors, company secretary,

advisers and shareholder information 174

Five-year summary 175

Glossary of alternative financial

performance measures 176

Glossary of terms 179

GLOSSARY OF TERMS

CONTINUED

LISA Lifetime ISA

Listing Rules Regulations subject to the

oversight of the FCA applicable to companies

listed on a UK stock exchange

Loyalty bonus A reward to customers for

holding certain collective investments within

the Vantage wrapper. This is paid on a regular

basis as a percentage of qualifying assets

LTIP Long-term incentive plan

Material Risk Takers Persons identified

as meeting the criteria of ‘material risk

takers’ as set out in the European Banking

Authority regulatory technical standard and

consequently subject to the requirements of

the Remuneration Code.

MGC Model Governance Committee

MLRO Money Laundering Reporting Officer

Multi-Manager funds A range of funds offered

by Hargreaves Lansdown which are managed

under the Fund of Funds format

NED Non Executive Director

Net new clients Represents the net of new

clients less lost clients in the period

Net revenue Total revenue less commission

paid, which is primarily the Loyalty Bonus paid

to clients

Nominated Director The non-independent

Non-Executive Director appointed to the

Board by Peter Hargreaves pursuant to his

shareholder agreement with the Company

NPS Net Promoter Score

Number of new clients Unique number of

clients holding at least one account (PMS, ISA,

SIPP or Fund and Share Account) with a value

greater than £100 at the year end

ONS Office for National Statistics

ORC Operational Risk Committee

Organic growth Growth in assets under

administration can be attributed to two

main causes. The first is growth due to the

appreciation in the value of existing assets

and the second is organic growth through

additional contributions

Pillar 1 and 2 capital requirements The Basel

Committee on Banking Supervision set out

certain capital requirements which must be met

by qualifying financial institutions

Pillar 3 A set of disclosure requirements which

enable the market to assess information on

a firm’s risks, capital and risk management

procedures

Platforum The advisory and research business

specialising in investment platforms which

compiles the Direct Platform Guide

PMS Portfolio Management Service

RDR Retail Distribution Review

SASB Sustainability Accounting

Standards Board

SAYE scheme Save As You Earn scheme

SDR Sustainability Disclosure Requirements

SID Senior Independent Director

SIPP Self-invested Personal Pension

SMCR Senior Managers and Certification

Regime

SPP Sustained Performance Plan

SREP The FCA’s supervisory review

and evaluation process

TCFD Task Force for Climate-related

Financial Disclosures

UCITS Undertakings for Collective Investment

in Transferable Securities

UK Corporate Governance Code A code

published by the FRC which sets out standards

for best boardroom practice with a focus

on board leadership and effectiveness,

remuneration, accountability and relations

with shareholders

UNSDG United Nations Sustainable

Development Goals

Year end/financial year Our financial year

starts on 1 July and ends on 30 June

Hargreaves Lansdown

Report and Financial Statements 2024

Cautionary statement concerning

forward-looking statements

This document comprises the Report and Financial

Statements for the year ended 30 June 2024

for Hargreaves Lansdown plc (the ‘Company’)

and its subsidiaries.

It contains certain forward-looking statements with

respect to the financial condition and the results of the

Company, including statements about the Company’s

beliefs and expectations and including, without limitation,

statements containing the words ‘may’, ‘will’, ‘should’,

‘continue’, ‘aims’, ‘estimates’, ‘projects’, ‘believes’, ‘intends’,

‘expects’, ‘plans’, ‘seeks’ and ‘anticipates’, and words

of similar meaning, are forward-looking statements.

These statements are based on plans, estimates and

projections as at the time they are made, and therefore

undue reliance should not be placed on them. By their

nature, all forward-looking statements involve risk and

uncertainty because they relate to events and depend

upon circumstances that may occur in the future.

The forward-looking statements are based on current

assumptions and estimates by the management of the

Company. Past performance cannot be relied upon as a

guide to future performance and should not be taken as

a representation that trends or activities underlying past

performance will continue in the future. Such statements

are subject to numerous risks and uncertainties that

could cause actual results to differ materially from any

expected future results in forward-looking statements.

These risks may include, for example: changes in the

global economic situation; a lack of alignment between

the Company’s propositions and activities and its

strategic objectives; poor performance of markets

adversely affecting the Company’s revenue and

impacting strategic expectations; a failure to effectively

manage and maintain existing technological architecture,

environment or components that are key to operational

delivery; a failure to design or implement appropriate

policies, processes or technology; a failure to comply

with regulatory and legal standards or expectations; a

failure to design or implement frameworks to counter

financial crime risks; a failure to design or implement

appropriate frameworks to manage data and data

storage risk; a failure of the Company’s culture and

values to support appropriate client-focused conduct

leading to poor client outcomes; a failure to establish

robust operational resilience solutions; and a failure to

attract, retain, develop and motivate people who are

aligned to the Company’s values. Further information

on all these risks is provided on pages 51 to 58 of the

Strategic Report section of this document. The Company

provides no guarantee that future development and

future results actually achieved will correspond to the

forward-looking statements included here and accepts

no liability if they should fail to do so. Neither the

Company nor any member of its group undertakes any

obligation to update these forward-looking statements,

which speak only as at the date of this document and will

not publicly release any revisions that may be made to

these forward-looking statements, which may result from

events or circumstances arising after the date of this

document, except as required under applicable laws and

regulations. Nothing in this document constitutes, nor

should it be construed as, a profit forecast or estimate.

Additional cautionary statement:

The information contained in this document does not

constitute an offer to sell or otherwise dispose of or

any invitation or solicitation of any offer to purchase

or subscribe for any securities in any jurisdiction

whether pursuant to the formal final offer for HL by

the Consortium or otherwise. This document does

not constitute a prospectus, prospectus equivalent

document or an exempted document.

Hargreaves Lansdown plc

One College Square South

Anchor Road

Bristol BS1 5HL

Tel: 0117 900 9000

Registered number: 02122142