St James’s Place (SJP) shares opened lower this morning (17 July) after yesterday’s slide on news of two appointed representative (AR) exits from the group, with at least one joining rival network Soderberg & Partners.
At time of writing, St James's Place's share price was 1,081p, down 9.9% from Thursday's (16 July) open of 1,200p.
The share price fall started yesterday, when reports circulated that two large SJP ARs, Sheffield-based Prospera Wealth Management and South East-based Wellesley Investment Management had left the wealth manager's network to join a rival.
Both firms are no longer listed as SJP ARs on the Financial Conduct Authority's register of authorised firms.
Wellesley Financial Services is now listed as an AR of Söderberg & Partners.
"We're proud to announce our partnership with Söderberg & Partners, one of Europe's leading financial services groups," it stated in a note on its website, formerly linked to Wellesley Investment Management.
"For over 30 years, Wellesley has helped individuals and families across the South East build, protect and enjoy their wealth through trusted, personal advice," it continued. "Today, we're entering an exciting new chapter that strengthens our ability to deliver for clients, both now and into the future."
A source reportedly told Bloomberg that Prospera is also set to join Söderberg & Partners, which recently agreed to buy Schroders' Benchmark in a move expected to see the Swedish group's AUA swell to around £60bn in the UK.
Prospera's website is currently "undergoing maintenance" and "will be back soon", according to a note on its homepage. Prospera is not currently listed as an authorised AR of any network on the FCA register.
The latest exits followed reports earlier this month that Sovereign Wealth is also set to leave SJP's network for Söderberg .
As of this morning, Sovereign Wealth remains listed as an AR of SJP on the FCA register.
Both SJP and Söderberg declined to comment on Sovereign last week when approached by PA.
SJP has been approached for comment on the latest developments. Söderberg again declined to comment.
Separately, in recent months it emerged that SJP could face legal action from former ARs who allege it took clients from them without proper compensation after suspending or terminating their contracts.
The wealth manager dismissed claims behind a law firm's bid to launch a group legal action over the matter as "purely speculative" when approached by PA.
More on SJP: Justin Cash – SJP faces an uncertain future
