Hargreaves' cash conundrum: Can it find room to manoeuvre on margins?

Although Hargreaves did not move to an unbundled pricing model until Q4 of its financial year, this week's results gave an early indication of the margin pressures it is facing.

With all the talk of clean pricing, preferential share classes and negotiations with fund groups last year, investors - and the fund industry itself - are watching closely to see if falling margins will erode the group's competitive advantage. On Wednesday, as expected, Hargreaves reported margins on its Vantage platform fell, and warned they will fall further still (from 60bps pre-RDR, to 49bps post-clean pricing, and an estimated 44bps post-2016 legacy commission ban). But the company seems comfortable with the changes at this stage, pointing to client and asset retention levels tha...