Almost 34 years after forming Hargreaves Lansdown with Stephen Lansdown, Hargreaves will withdraw from his role at the top of the company to focus on other pursuits.
He will retain a reduced role within the business, as well as keeping his stake as a major shareholder.
“I believe this is the right time for me to step down from the board,” Hargreaves said.
“I will continue to work in the business, but will spend more time with my family and pursuing outside interests. I will, of course, remain in close touch as a major shareholder.”
Shares in Hargreaves Lansdown subsequently dropped 3.96%, as of 12.30pm on 14 April, against a FTSE 100 rise of 0.29%.
Nick Davis, manager of Polar Capital’s European Income Fund, believes that there will not be too much fall-out from Hargreaves’ departure.
“Hargreaves Lansdown has a very strong franchise and the current CEO Ian Gorham has been in place since 2010,” he said. “We would expect it to be very much business as usual over the medium term. Hargreaves Lansdown is now a well-established listed company, and this latest news is just another step in a gradual process of the co-founders stepping back from the day-to-day running of the business.”
“Given the recent strong share price performance, it is not surprising to see a little weakness on the day of the announcement.”
Mike Evans, chairman, said: “Having founded this business with Stephen Lansdown in 1981, Peter has been instrumental to the success of the Group and has personally overseen its development into a financially secure, profitable, client focused, FTSE 100 business.
“I am sure we will continue to benefit from his experience and insight as both an employee and a major shareholder. On behalf of the Board and indeed the whole Group, I would like to express my gratitude to Peter for his immense contribution to the Group to date.”