Hargreaves Lansdown has admitted it had failed to file accounts to justify certain dividend payments at Companies House, which left the firm in breach of UK company law.
The firm said its board had "become aware of a technical issue" with respect to a number of historic dividends the company has paid out.
Although Hargreaves Lansdown said it has always filed its annual accounts on time and in accordance with the rquirements of the law, it admitted it had not "satisfied certain procedural requirements" before paying certain dividends in the years following its initial public offering in 2007.
However, neither the founders of the company, Peter Hargreaves (pictured) and Stephen Lansdown, who each hold more than 10% of the firm's voting rights, nor other shareholders, will be asked to repay any dividends received from the company, Hargreaves Lansdown said.
The firm is to convene a general meeting so it can find a resolution to the situation. In particular, its intention is to "put all potentially affected parties so far as possible in the position in which they were always intended to be had the relevant distributions been made in accordance with the procedural requirements of the acts", it said.
It added the "proposed ratifications" of the issue would not have any effect on its financial position.
Following the firm's half year statement on 8 February, which included the news, the company ended trading with its shares 1.5% down at £13.64 per share.
This was despite its reported revenue increase of 16% and pre-tax profit rise of 21% on the first half of 2016. Assets under administration were up 13% at a record level of £70bn.
The firm had also taken on 40,000 new active clients in the second half of 2016, bringing its total to 876,000, the results showed.
Last year, Chief executive Ian Gorham announced he is to step down before September 2017 and is to be replaced by the group's chief financial officer Chris Hill.
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