UK's largest wealth manager suffers shares slump
By Laura Enfield | 30th October 2023
The UK's largest wealth manager which is headquartered in Cirencester has seen shares values slump following new consumer rules, reports thisismoney.
St James's Place has suffered a dive of 44%- or £2.6 billion - in shares after the consumer duty regulations came into force in July giving them a better deal.
The company 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 £150m 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% for exiting their pension investments early. The firm says the culture has been reformed.
Pension exit charges have been capped at 1% since 2017.
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.
An FCA spokesman said: 'We want competitive markets with products sold clearly and priced fairly.
'Consumer duty isn't about us setting the price. It means financial firms proving to themselves, and if necessary us, that what they charge reflects the value customers receive.
'If they can't, they need to make changes.'
SJP was contacted by thisismoney for a comment.
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