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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Financial Services

St James's Place update to be dominated by fee concerns

Shares in St James Place are still suffering from the wigging the wealth manager got from the FCA over fees and consumer duty responsibilities.

That forced it to adopt a new fee structure in October accompanied by a warning this would hit profits by up to £160 million and affect cashflows for three years.

“A key consideration for St James's Place is whether recent adjustments to its fee structure are now final,” analysts at Barclays wrote in a recent preview of next Thursday’s new business update.

Reports before Christmas that SJP was looking to raise up to £1bn in new equity have also added to the share weakness and will be something else to watch for.

Barclays added: “We expect gross and net flows to remain modest as inflation and rates remained elevated in the fourth quarter of 2023.

“However, market movements were favourable, which we expect will benefit funds under management.”

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