St James's Place's (SJP) distribution business tumbled into the red last year, which the firm said was due to the cost of hiring more advisers, and a £5.5m Financial Services Compensation Scheme (FSCS) levy.
SJP reported operating profits of £462.7m for 2013, up 26% on the previous year, during a period in which it said it added 45,000 new clients. The key driver of the improved result was the increase in income derived from higher funds under management, the firm said. Net inflows of funds under management were up 28% for the period to £4.3bn. Total funds under management rose 27% to £44.3bn. However the distribution business made a loss for the year of £6.1m, compared to a 2012 profit of £5.3m. The result reflects higher expenses in 2013 associated with the strong increase in advi...
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