This article reflects the opinions of its author and not necessarily those of ShareSoc.
Shares in the FTSE 100 group SJP (St. James’s Place LSE: STJ) have shed more than 35 per cent since July, when SJP announced modest changes to fees in response to the rules. The shares were down 8 per cent in early trading on Friday.
Investors’ concerns over its business model have intensified since the Financial Conduct Authority introduced its Consumer Duty in July, which forces financial services companies to show they are acting in customers’ best interests.
However, Hargreaves’ shareholders have done far worse than SJP’s – so far.
An excellent article in the FT highlighted these issues at SJP, but the decrease in share price at Hargreaves has been worse. Hargreaves problems not only extend to fees, but also to its Wealth Lists and its promotion of Woodford Funds. The FCA has been looking at Hargreaves’ role in the Woodford scandal and has still not published its report.
However, I quite like what the FCA is doing in respect of the consumer duty.
Disclaimer: The author does hold a small number of Hargreaves shares. The author does not hold shares in SJP.