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St. James’s Place to Change Charging Structures for Investment Bonds and Pensions

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St. James’s Place Announces Changes to Charging Structures, Expects Short-Term Impact on Cash

St. James’s Place, a leading wealth-management company in the UK, has revealed plans to revise its charging structures for new investment bonds and pensions. The changes will result in reduced underlying cash for the group in the next few years. The new structure will feature an initial charge and continuing charges without early withdrawal fees or a gestation period. Additionally, charges across all the company’s wrappers, which are assets grouped into single securities, will now be separated into component parts, rather than being disclosed on an all-inclusive basis as before.

The implementation of these changes, estimated to cost between £140 million to £160 million ($171 million-$195.5 million) before tax, will lead to a decrease in underlying cash in the short-term. The company expects implementation costs of approximately £10 million in 2023, £95 million in 2024, and the remaining amount in 2025. However, St. James’s Place believes that the changes will drive growth in the medium term, setting the cash result on a more positive trajectory into the next decade and beyond.

The group emphasized that the adjustments align with its commitment to delivering value and positive outcomes for clients, in line with the ongoing expectations of the Consumer Duty. The changes are scheduled to be implemented during the second half of 2025.

In addition to the announcement about the charging structures, St. James’s Place reported an increase in its assets under management during the three months ending September 30. The company’s assets rose to £158.57 billion from £157.52 billion in the previous quarter. It also recorded £91 million in net inflows during this period.

The Chief Executive of St. James’s Place, Andrew Croft, commented on the current economic landscape. He stated, “We are beginning to see signs that inflation is moderating and that the current cycle of interest rate increases may be reaching a peak, bringing some optimism that this will ease the pressure on clients.”

St. James’s Place is a prominent player in the wealth-management industry, serving a wide range of clients across the UK. With these changes to its charging structures, the company aims to enhance its offerings and ensure it continues to deliver value to its customers.

More detail via MarketWatch here… ( Image via MarketWatch )

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