The Lemon Fool

What have I missed?
1183 down to 955 that's a bit steep without an obvious reason that I've seen published.
I looked at an RNS that was quite optimistic - which seems to call into question company statements

per the FT the drop is due to them cutting fees for some clients from next week, and a bigger than expected drop in new client numbers

scrumpyjack wrote:per the FT the drop is due to them cutting fees for some clients from next week, and a bigger than expected drop in new client numbers

Many thanks for that explanation. It's good to have knowledgeable subscribers to bring a bit of light to those of us less able.
I must have missed that in the company statement of it prospects. Where should I have looked to discover it?

gnawsome wrote:

scrumpyjack wrote:per the FT the drop is due to them cutting fees for some clients from next week, and a bigger than expected drop in new client numbers

Many thanks for that explanation. It's good to have knowledgeable subscribers to bring a bit of light to those of us less able.
I must have missed that in the company statement of it prospects. Where should I have looked to discover it?

if you look up a share price in google finance it also gives a list of recent news items, eg the FT comment on the reason for the sudden drop

scrumpyjack wrote:per the FT the drop is due to them cutting fees for some clients from next week, and a bigger than expected drop in new client numbers

It affects insurers more than St James Place, but there are new accounting rules about recognition of profits which prevent them treating a new sale as immediate revenue.

gnawsome wrote:

scrumpyjack wrote:per the FT the drop is due to them cutting fees for some clients from next week, and a bigger than expected drop in new client numbers

Many thanks for that explanation. It's good to have knowledgeable subscribers to bring a bit of light to those of us less able.
I must have missed that in the company statement of it prospects. Where should I have looked to discover it?

Actually just read a decent newspaper. The Times this morning had an article on the subject.

'St James's Place is to take a £859 million hit after the wealth manager cut some of its charges as it braces for a regulatory crackdown that will force financial firms to put customers first.'

Isn't that rather novel? As I have been saying for ages, if you invest with a quoted manager they have a huge conflict of interest between their own bottom line and the benefit to the customer. That is the problem for SJP and many other so called 'wealth managers'

Dod

Alaric wrote:

scrumpyjack wrote:per the FT the drop is due to them cutting fees for some clients from next week, and a bigger than expected drop in new client numbers

It affects insurers more than St James Place, but there are new accounting rules about recognition of profits which prevent them treating a new sale as immediate revenue.

The new accounting rules you refer to is presumably IFRS 17. That will not directly affect wealth managers. It affects the timing of the recognition of profits of many life insurers but not wealth managers as far as I know. As I have said above, St James' Place profits will be affected by something much more straightforward, cutting their fees. And about time too, most I think would say.

Dod

Consumer Duty. Last week I read that SJP asked the regulator to exempt it from charging exit fees (brought in with the Retail Distribution Review in 2012!)

Ive been away, but I assume FCA say no.

I feel sorry for their clients.