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St James Place shares crash as it sets aside £426 million for screwing its customers and there will be worse to come

By Tom Winnifrith | Wednesday 28 February 2024


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.


I say this time and time again, in any business there are three key groups of stakeholders: customers, employees and shareholders. In some businesses there is a fourth, suppliers. The basic rule is that you can over-reward one or two key groups by screwing a third but only for so long. In the end you will pay for that screwing. Wealth manager St James (STJ) created a vile culture where staff were given huge bonuses, luxury cruises and more if they screwed customers by getting them to churn their investments and by stiffing them with any charges going. That also allowed the company to pay bumper bonuses. But that business model is not sustainable. And today the chickens started coming home to roost.
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