Deutsche Numis puts St James’s Place rating under review after results

It said that while the underlying cash result was close to its expectations, the overall cash result fell substantially below expectations at £69m, due to a £426m net of tax provision taken against "ongoing service evidence" - i.e. evidence advisors had provided ongoing advice when charging fees for such service.

As a result, the firm cut its dividend to 23.8p from 52.8p and said it plans to rebase future distributions to 50% of underlying cash profits, with a fixed 18p/share/year in dividend for the next three years and the balance in buybacks.

"Clearly, this means we once again need to go back to the drawing board in assessing the investment case for SJP," Deutsche Numis said.

"It is disappointing to see another piecemeal warning/major adverse development to the investment story in our view, rather than seeing these issues dealt with comprehensively on one occasion.

"Our long term view on the industry structural asset growth opportunity, driven principally by the DC pension opportunity, clearly does not change.

"However, we increasingly have to question how well will SJP monetise that opportunity."

Deutsche Numis said it was placing its recommendation and forecasts under review while it establishes what this means for the investment case.

The price target was also put under review, from 1,050p.