Shares of St. James’s Place Plc tumbled their most since 1993 after the UK’s largest wealth manager said it’s reviewing its fees and charges.
(Bloomberg) — Shares of St. James’s Place Plc tumbled their most since 1993 after the UK’s largest wealth manager said it’s reviewing its fees and charges.
The firm is assessing its models to ensure it operates a scalable platform for the long term and no decision has been made, it said in a statement on Friday. That was in response to a Financial Times report that the adviser is under pressure from regulators to overhaul its fee structure and reduce what it charges clients.
The stock plunged 22% in London on Friday to its lowest since December 2013, according to data compiled by Bloomberg.
St. James’s Place, which has about a million clients and manages assets of more than £150 billion ($182 billion), has been criticized intensely over the years for having a convoluted fee structure and charging too much for its services.
It’s also come under scrutiny for its exit fees. It charges 6% of the total value of an investment if a client wants to withdraw in the first year, dropping to 1% by the sixth year, according to the company’s website.
The revamp might be a priority for new Chief Executive Officer Mark FitzPatrick, who took over at the beginning of the month from Andrew Croft.
“We are confident that all the options under consideration will ensure value for clients and a strong, secure, and sustainable business for all stakeholders,” the firm said in the statement, adding it continues to engage with regulators during the process.
In a trading statement in July, the wealth firm said it would bring down some of its fees as it prepared for new regulation.
(Updates shares.)
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