Hargreaves, AJ Bell shares slide after UK regulator warns on charges

(Reuters) -Shares in Hargreaves Lansdown and AJ Bell were among the leading losers in early London trade on Tuesday after Britain's market watchdog expressed concerns about the amount of interest and fees charged by some investment platforms.

The Financial Conduct Authority said on Tuesday said it had written to 42 firms warning it could intervene to ensure fair value. The regulator said it had told the platforms, which it did not name, to cease this practice. Platforms have been given until February 29 to make any changes.

Jefferies analysts said they expected possible negative impact on margins for Hargreaves Lansdown and AJ Bell.

"It is likely that revenue margins on cash balances held in some types of account on platforms such as HL and AJB will be reduced by the amount of the platform fee, while net interest income may fall as well," they wrote in a note.

Hargreaves Lansdown was last down 7.4% and AJ Bell was down 6.3%. The FTSE 350 index added 0.4%. Other shares in the sector were less impacted. St. James's Place was down 1.3%, while CMC Markets and IG Group both eased 0.3%.

(Reporting by Danilo Masoni; Editing by Amanda Cooper)