St James’s Place‘s platform upgrade is likely to cost the wealth management giant in excess of £170m, latest results reveal.
Financial statements for 2017 show that the firm’s new Bluedoor system cost it nearly £22m for the year, up from £17m for 2016, as assets continue to migrate over to the new technology.
While two-thirds of new inflows are currently going on to the platform, by December last year, less than a third of all funds under management were held on the platform.
Existing pension and drawdown plans are yet to migrate, with “final key migrations” being prepared for 2019. Isa and unit trust business moved across in 2015.
SJP has recorded a £171m prepayment to DST Systems, the technology company behind the upgrade.
SJP says the new platform will provide a “more holistic administration service to our clients”.
Other significant outgoings for the manager included a £21m contribution towards the Financial Services Compensation Scheme and a £6.6m spend on its academy programmes.
New chief executive Andrew Croft, who took over from David Bellamy in January, was appointed on a base salary of £520,000, the accounts reveal. Including pension and bonus payments, he took home nearly £1.8m in 2017 for his role as chief financial officer.
Bellamy will retain a £230,000 pay packet a year as he stays on with the firm in an advisory capacity.
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