St James’s Place has seen a sharp decline in net inflows, dropping from £3.8bn to £2.7bn in the first half of the year, as the UK pensions regime overhaul drives investor uncertainty.

Chief executive Mark Fitz Patrick said markets were supportive but the impending inclusion of pensions in inheritance tax and a looming 40 per cent levy have prompted withdrawals ahead of the change.

SJP's recent adjustments include cutting its adviser fee structure, paying ongoing fees monthly from March, and has experienced a net movement of advisers. Despite departures of firms like Prospera and Wellesley, adviser numbers remain up, adding resilience.

Analyst Andrew Lowe of Citi expects a positive reaction to the 0.3 per cent growth in adviser numbers, while competitors lure talent. SJP’s focus on strengthening its adviser proposition continues as it navigates the shifting regulatory and market landscape.