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St James’s Place has cut its final dividend and warned that payouts will remain at a fixed level for the next three years, as the UK asset manager slumped to an annual loss.
The company, which is reviewing its strategy under new chief executive Mark FitzPatrick, also announced a £426m provision for “potential customer refunds linked to historical testing and ongoing service provision”.
Based in Gloucestershire, SJP has become a powerhouse over the past three decades as its more than 4,000 financial advisors have offered clients everything from wealth management to retirement planning.
However, in the last year the group has found itself in the sights of the Financial Conduct Authority over a fee structure long considered opaque and expensive.
The introduction of new consumer rights rules last July is aimed at forcing companies to demonstrate that they are acting in the interests of their customers.
Following pressure from regulators, SJP announced a review of its fees in October, including eliminating penalties for customers who withdraw their money within a certain period.
The group has cut its final dividend from 37.19p per share to 8p per share. This gives a total win for the year of 23.83 cents, less than half the previous year’s level.