Strategic report Governance Financial statements Other information MARKET OVERVIEW CAPTURING GROWTH IN AN ATTRACTIVE MARKET CONTINUED Active Savings remains a key part of our growth Competition Our CEO is a member of the FCA’s Practitioner strategy and through additional functionality and We operate in an increasingly competitive Panel, an advisory body drawn from the leadership more banking partners we will widen the appeal landscape and new competitors continue to of large firms. This gives us insight into the FCA’s to existing clients and provide a significant enter the digital wealth marke wth innovativet i strategic thinking and policy development, and marketing opportunity to attract new clients, technology and new solutions. We are never the opportunity to bring our expertise and client particularly if we return to a more normal interest complacent and continue to watch the insight gathered through our interaction with rate environment. competitive landscape closely. Where 1.6 million clients to inform and influence the Digital wealth management competition raises the awareness of saving and debates. During the year we have engaged with A shift to online digital wealth management investing we see this as a good thing. Financial the FCA’s developing approach on consumer was already underway but this trend has been education and awareness in the UK is relatively investment markets. We have focused on how accelerated by the impact of COVID-19. It is no low and hence high quality, client focused best we can guide our clients to better outcomes, longer sufficient to just have a range of products companies like ours have a key role in addressing giving practical examples where we would like to and services at a competitive price. Digital these issues. Healthy competition ultimately personalise guidance more effectively. technology needs to be embedded right across delivers better outcomes for investors. During the year to 30 June 2021, HL has the proposition from the initial opening of Achieving scale is key to becoming successful. participated on various regulatory consultations accounts, through the investment journey and Once scale is achieved, sustainable profits rely and has delivered two significant regulatory- ultimately the financial outcome. Clients want on continued investment in technology, people driven implementations. to do things simply and quickly; they want an and a focus on how our clients’ needs develop Making Transfers Simpler took effect in engaging experience delivered through tailored and how the regulatory landscape evolves. • content, online research, guidance and tools; Hargreaves Lansdown does not rest up and is February 2021, making the process of they want to use their smartphones and they always looking to improve the experience for our transferring between providers easier want to know this is being provided by a resilient clients, ensuring value for money is delivered. for clients. secure platform. Our scale of client insight and Regulation • In January HL introduced Investment data puts us in a great position to understand Regulation is an ever present theme in financial Pathways for Drawdown, going beyond the clients’ needs and to focus our investment to services and absorbs a considerable amount regulatory requirements to deliver a new deliver on these digital trends. of time and resource. Hargreaves Lansdown is digital journey for clients, which increased well placed to address the challenge this brings. efficiency and made it easier for clients to Our primary regulator is the FCA and it oversees make optimal decisions. all aspects of our work, from how we manage our platform, give advice and run our fund management operations, to how we communicate with our clients. We seek to actively engage with the FCA on a wide range of consultations and policymaking. 23 Hargreaves Lansdown Report and Financial Statements 2021