Strategic report Governance Financial statements Other information CHIEF EXECUTIVE OFFICER’S REVIEW CONTINUED Structural changes in the UK wealth market havebeen accelerated by the pandemic and we haveThe impact of COVID-19 on individuals,businesses and the economy still provides anDRIVING POSITIVE learned from experience that clients expectever-improving levels of service, increasinglydelivered on a multi-channel basis via mobile,uncertain backdrop to the current year. As wehave eased out of lockdown and entered thesummer months, we have seen a slowdown inCLIENT OUTCOMES website, webchat and telephone helpdesk. The dealing volumes and client activity versus the drivers of our success over the last five years willelevated levels this time last year, which is also inform our response to the challenges and the normal for this time of year and in line with We want to help We aim to help clients become opportunities we face over the next five years, management expectations. However, given better investors by empowering with the ambition of providing our clients with the our enlarged client base, we would still expect to clients make the them with the right education, best services, products and tools to manage see stronger client activity in FY22 versus FY20 most of their information and tools. their savings and investments. To that end we (which also included a few months of elevated More appropriate risk adjusted have made some significant new senior hires activity during the peak of the pandemic period) money at a level returns lead to better outcomes during the period to strengthen our management and the breadth of proposition and client focus and a more financially resilient team as we look to drive the next phase of our gives us confidence that as the year progresses of risk that’s right future for clients. It’s the right , thing for us to encourage. digital transformation, with the appointment of a we will continue to win in this growing market. for them. Our client data and digital new Chief Information Officer, Chief Technology We are also confident that in the medium capabilities allow us to target our Officer and a new Chief Risk Officer. In addition, term beyond this period of post pandemic interventions to those who might following the recent announcement that our ‘normalisation’ and investment, as demonstrated benefit the most. We’re able to CFO, Philip Johnson, is standing down for use a variety of channels to deliver personal reasons, we have commenced a search by the benefits we are already seeing from our helpful information – from targeted process to identify and appoint his successor. previous investments, HL will continue to deliver emails and extensive website, Philip has been a highly valued member of the attractive earnings growth with improving to our telephone-based Helpdesk. management team and he will continue to work operating leverage as the benefits of this Our investment expertise and alongside myself and the Board to ensure an investment deliver. data has allowed us to distil client performance down to a few key orderly transition. factors. We’re using these metrics With this continued investment in our people, when we review our products and tools, making sure they’re driving proposition, service and technology as well as positive client outcomes. the cost of servicing an enlarged and growing client base, we expect FY22 costs to reflect this The initiatives have become part investment and continue to be broadly aligned of our service, and something we’re to client growth. looking to build and continue. We don’t ask clients for anything extra in return. Our success relies on our clients doing well. 1. Source – Platforum UK D2C Market Update, June 2021. 2. Source – FCA, Platforum, Pimfa, PAM Directory, Oliver Wyman estimates Summer 2021. Addressable wealth definition = wealth served by Financial Advisors, Wealth Managers and D2C market. 17 Hargreaves Lansdown Report and Financial Statements 2021