The complaint read: "On 27 August 2021 Mr M informed HL about gambling away most of his pension and about his addiction.
"He says HL is primarily responsible for the loss this caused in his SIPP because it failed to identify, from his trading profile/behaviours, indications of his addiction.
"[He says] it failed to uphold its regulatory obligations to safeguard the interests of vulnerable clients like him (in circumstances like his).
"[He claimed HL] therefore exposed him to gambling risks and losses he ought to have been protected from.
"He also says HL contributed to the financial hardship and overall distress he faced, by restricting access to the SIPP’s remaining funds after August 2021, funds he desperately needed for living expenses. HL disputes the complaint."
But the adjudicator said: "Overall, I do not consider that HL failed in its duty to assess appropriateness in Mr M’s case.
"I consider it beyond dispute that HL reacted correctly in the steps it took to safeguard the Sipp after it became aware of the addiction."
Communication
Moran said he believed he had spoken to Hargreaves Lansdown about the issue "hundreds of times".
He added: “Hargreaves Lansdown should have spotted my behaviour but they didn’t do anything; they washed their hands of it.
“It was only in December 2022 that they wrote to me saying I had risky positions, so they did know [about the risk of loss].”
While Moran said he had to sign forms to start investing his pension, he said he was only asked to tick a box.
Moran said: “The FCA has done a whole report on vulnerability, especially with problem gambling. I am a textbook example of this playing out.
“I have been left homeless and penniless. I never imagined my retirement would be like this, it is like being in a nightmare.”
A spokesperson for Hargreaves Lansdown said: “We have every sympathy for Mr Moran and his situation, but regrettably there is no more we are able to do on this matter.”
After losing his home and spending time sofa surfing, Moran now lives on a canal boat.
What protection do gamblers have?
In 2021, the FCA published guidance for firms on the treatment of vulnerable people.
It set out ways in which firms could ensure vulnerable customers experienced outcomes as good as any customer.
These principles were applied to gambling in a research paper published by the University of Bristol and charity GambleAware.
This stated: “The proactive analysis of customer transaction data is key to regulated firms knowing their vulnerable customers, including understanding the extent and nature of gambling-related vulnerability.”
It also sets out there is a “well-established link” between risky investing and harmful gambling.
Hargreaves Lansdown has a section on its own website on coping with a gambling addiction.
