Hargreaves blames Royal Mail float for spike in complaints

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Hargreaves Lansdown has blamed the high demand it experienced during the Royal Mail flotation for the 3,173 complaints it received in the second half of 2013.

The discount broker said 80% of the 'unusually high number’ of complaints it received were related specifically to the Royal Mail float in October 2013.

The complaints figures are for the entire group, including its Vantage platform service and advisory arm.

The complaints figures were released as part of the Financial Conduct Authority's (FCA) complaints data for the period between July and December 2013.

Hargreaves said 118,000 people bought shares in Royal Mail through the firm so its activity volume around the event was 'exceptional'.

At the time Hargreaves apologised after clients complained they experienced a 'reduction' in services as its systems were overwhelmed by client demand for the Royal Mail shares.

Adrian Lowcock, Hargreaves Lansdown senior investment manager, said: 'The majority of complaints relate specifically to the Royal Mail flotation last October. The demand for Royal Mail shares was off the scale with 118,000 clients purchasing Royal Mail shares through Hargreaves Lansdown.

'Complaints relating to Royal Mail covered a wide range of issues including complaints on the number of shares clients received, how shares were allocated and other matters. Excluding complaints about the Royal Mail flotation, complaints remained very low, at the same level as in the first half of 2013, representing less than 0.1% of 584,000 clients who use Hargreaves Lansdown.'

The company added that 'expressions of dissatisfaction' counted as a complaint. It said some investors did not realise the government, rather than Hargreaves, decided that share allocations were given to retail investors and complained to the company about their the number of shares they received.

These instances were included in the company's figures.

Hargreaves also said it resolved the vast majority of the complaints with a £25 goodwill payment.