St James’s Place shares plunge as wealth manager eyes fees overhaul
Shares in wealth manager St. James’s Place have plunged today after the firm confirmed it may be about to overhaul its fee structure to fall in line with stringent new consumer rules.
The London-listed funds group said in a statement this morning it was conducting an “assessment” of its fees and charging models after the introduction of the Consumer Duty this summer.
The rules have ramped up the standard of service expected from firms and are designed to ensure good outcomes for customers. St James’s Place is the UK’s largest wealth manager but has face criticism in the past over its lofty fees and an expensive exit charge.
The firm said today it was currently conducting a deepdive and would weigh up changes to the fees.
“Whilst the evaluation has not yet been completed and therefore no decision has been made, we are confident that all the options under consideration will ensure value for clients and a strong, secure, and sustainable business for all stakeholders,” St James Place said.
“We naturally continue to engage with all of our primary regulators during this process.”
The update sent shares down by nearly 15 per cent.
The Financial Times reported the group had been pushed by regulators to overhaul fees.
The group has also come under fire in recent months for topping a list of poor performing money managers with the most so-called ‘dog funds’.