Britain’s wealth managers on the ropes as their own shares plummet
- On November 1, 2023
- By GrowthInvest Marketing
They are supposed to be in the business of making money for their clients, but Britain’s biggest wealth management firms have seen the value of their own shares slump since new rules were introduced to give customers a better deal.
The biggest loser has been St James’s Place, whose shares have dived by 44 per cent – or £2.6 billion – after the consumer duty regulations came into force in July.
SJP, the UK’s largest wealth manager, has slashed fees for long-standing clients and plans to axe controversial early withdrawal penalties to comply with the new rules.
The moves are set to cost the firm around £150 million when those changes come into effect in 2025.
The company has been under fire for a ‘cruises and cufflinks’ mentality that rewarded its top salesmen at the expense of clients, who faced charges of up to 6 per cent for exiting their pension investments early. The firm says the culture has been reformed.
Pension exit charges have been capped at 1 per cent since 2017.
City watchdog the Financial Conduct Authority wants firms to focus on ‘fair value’ and ‘good outcomes’ for customers.
Experts say the FCA, which has been attacked for failing to curb sky-high fees, is finally baring its teeth and has started to regulate prices to the benefit of customers.
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