Executives and advisers from St James’s Place, the UK’s largest wealth manager, convened this week at a luxury hotel in Hertfordshire for the company’s annual conference, shifting focus from past extravagance to discussions centered on business strategy. This change comes amid a challenging year for the firm, whose share price has fallen approximately 20% in 2026, marking it as one of the worst-performing stocks on the FTSE 100.

Investor concerns primarily revolve around the company’s ability to retain two critical groups: its customers and its advisers. The rise of artificial intelligence (AI) poses new competitive pressures, with around 20% of consumers reportedly already using AI tools, according to a Financial Conduct Authority survey earlier this year. These AI-driven chatbots offer free, complex financial advice, potentially drawing clients away from traditional wealth managers.

At the same time, advisers face their own uncertainties due to changes in remuneration and increased competition, notably from firms like Söderberg, which is backed by private equity firm KKR. The interplay between customers and advisers is significant, as St James’s Place and similar firms, including Rathbones, emphasize the personalized service and reassurance their advisers provide rather than purely their investment acumen.

St James’s Place operates through a partnership model of roughly 5,000 advisers, considered its main line of defense against both AI disruption and encroaching banks entering the wealth management sector. Maintaining strong relationships with these partners is critical. In July, the departure of two of St James’s Place’s largest partner firms triggered an 8% drop in its share price, illustrating the importance of adviser loyalty.

Chief Executive Mark FitzPatrick has undertaken a program to reform company culture and fee structures after years of client and regulator criticism. While these changes may be favorably received by clients, they have caused friction among advisers who benefited under the previous system. The company is moving away from opaque client fees and the practice of awarding luxury gifts to top advisers, aligning with increased regulatory scrutiny.

The evolution comes at a time when there is significant growth potential in the UK financial advice market, where only about 9% of adults currently receive regulated guidance. Factors such as wealth transitioning from baby boomers to their heirs, alongside rising taxes and complicated pension regulations, are expected to expand demand for financial advising.

Analyst forecasts predict that St James’s Place’s adjusted pre-tax profit will decline by around 5% this year due to the transition to new charging models, before rebounding with annual growth exceeding 20% between 2027 and 2029. This expected recovery could improve morale among both investors and advisers.

AI’s impact on the wealth sector is complex. While some industry voices express concern, others suggest it could be an advantage if advisers leverage technology to enhance client service. Being part of a large group with substantial investment in data and technology offers advisers the tools to manage more clients efficiently. Consequently, despite the challenges, the firm may continue to support traditional elements of its culture, including client events and celebrations, albeit with less direct financial involvement from St James’s Place itself.