By Shares in St. James Place, the wealth manager co-founded by Jacob Rothschild, experienced a sharp decline of up to 34% on Wednesday following a substantial provision of £426 million for potential client refunds. This decision also led to a reduction in dividends.
Complaints Surge and New Customer Relationship System
St. James Place mentioned a notable rise in complaints, especially towards the end of 2023, primarily related to the delivery of ongoing servicing. The firm attributed this issue to the implementation of a new Salesforce.com customer relationship system, suggesting that it is now considered a “historic issue.”
Change in Charging Structure
CEO Statement Regarding Future Growth
Mark FitzPatrick, who assumed the role of CEO in December, mentioned that the provision made and the anticipated decrease in profit growth during the transition period to the new charging structure will limit the firm’s ability to invest for long-term growth in the coming years.
Ending Assets Under Management
Despite the challenges faced, St. James Place closed the year with £168.2 billion in assets under management, showcasing the company’s continued strength in managing client assets.
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