St. James’s Place Drops on £426 Million Charge, Dividend Cut
- Provision linked to complaints over delivery of services
- Underlying cash result for 2023 below analyst expectations
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Shares of St. James’s Place Plc tumbled the most in more than seven years in London after the UK’s largest wealth manager made a £426 million ($538 million) provision for potential client refunds and cut investor payouts.
The company said in a filing Wednesday that it set aside the amount following a “significant increase” in complaints, particularly in the latter part of 2023, mostly linked to the “delivery of ongoing servicing.” As a result, it said annual shareholder distributions will be capped for three years.