St James’s Place has commenced a share buy-back programme as it looks to reduce the capital of the company.
According to an update on the Stock Exchange, this programme, which is subject to a maximum consideration of £32.9mn, will begin today (August 27) and will end no later than December 31 2024.
This follows the firm announcing in it half year results that it wanted to cut costs by around £100mn per annum by the end of 2026 after going through a "challenging" period.
The wealth manager revealed its cost base reduction programme which it said would result in savings of around £500mn.
The buy-back programme will be carried out through an irrevocable non-discretionary agreement with J.P. Morgan Securities.
SJP detailed that J.P. Morgan will purchase ordinary shares as riskless principles, rather than as an agent of the company, for the subsequent sale on to, and purchase by, SJP.
This will be in accordance with its current buy-back authority granted by shareholders at SJP’s 2024 Annual General Meeting.
J.P. Morgan has stated it will make its trading decisions in relation to the ordinary shares independently of, and uninfluenced by, SJP.
This includes in the case of any purchases made during closed periods.
The arrangement is in accordance with the applicable Financial Conduct Authority’s listing rules and SJP’s general authority to repurchase shares.
SJP has undergone scrutiny in recent years with the regulator casting a light on its fees and ongoing advice charges.
In its half year results, Mark FitzPatrick, chief executive of SJP, said the wealth manager was “progressing” with its ongoing advice review and was comfortable that the £426mn set aside for potential refunds was “appropriate”.
According to the results, as part of the review a “skilled person” undertook an initial assessment of a representative cohort of clients to explore whether issues raised by the complaints were replicated across the wider client bank.
tom.dunstan@ft.com
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