Good morning and welcome to your Morning Briefing for Thursday 31 July 2025. To get this in your inbox every morning click here.
SJP claws back £85m after reviewing ongoing advice compensation
St James’s Place (SJP) has clawed back £85m of the money it expected to pay out to compensate customers for historic ongoing advice charges.
Last year, SJP announced it had set aside £426m for potential client refunds – news that caused its share price to plummet and saw it drop out of the FTSE 100.
However, in its half-year results published today (31 July), the wealth manager confirmed that it had now estimated it to be nearer £320m.
BWS to acquire Just Group in £2.4bn deal
BWS and Just Group have agreed the terms of a recommended all-cash offer that will see the UK retirement specialist acquired for £2.4bn by Bidco, a wholly owned subsidiary of BWS.
Under the deal, Just shareholders will receive 220 pence in cash per share – a 75% premium to the 126p closing price on 30 July 2025.
The offer also represents a 60% premium to the three-month volume-weighted average price of 138p and a 54% premium on the six-month average price of 143p.
James Klempster: Never mind the geopolitics, focus on the long term
This has been an extraordinary year for geopolitics, economics and markets: from the launch of DeepSeek, President Trump’s ‘Liberation Day’ tariffs, major conflict in Europe and the Middle East, stock and bond market volatility, through to UK and US interest rates staying higher for longer, writes James Klempster.
Despite this environment, at the halfway stage of the year, European markets posted significant gains, the FTSE 100 had generated high single-digit growth, and the US was roughly back where it started 2025.
The soundtrack to market movements in the US among retail investors this year has been “Nothing much happens” and “Buy the dip”. US retail investors, for example, bought a record $4.7bn worth of stocks in a single day on 3 April.
Quote Of The Day
While the FTSE 100 has recently hit a new high, a growing number of bets are being made against a select group of UK stocks. Forget ‘Pomp and Glory’, certain investors hoping for ‘Slump and Glory’.
– Dan Coatsworth, investment analyst at AJ Bell, comments on the rise of investors betting against certain UK stocks
Stat Attack
New HMRC figures reveal that Britons continue to be overtaxed on pension withdrawals, with millions being reclaimed in the most recent quarter alone, highlighting an ongoing issue since pension freedoms were introduced. Key findings:
£49 million
was reclaimed by Brits in overtaxation on pension withdrawals in April, May, and June 2025.
Nearly 13,000
reclaim forms were processed during that quarter, with an average reclaim of £3,815.
£1.5bn
has now been reclaimed by people overtaxed on pension withdrawals since 2015.
Source: HMRC
In Other News
The UK is poised for an interest rate cut from 4.25% to 4% next week, with another expected before Christmas, possibly in November or December. The IMF also anticipates two more cuts this year.
This move is driven by the Bank of England balancing inflation concerns (largely due to global energy and water costs) with threats to economic growth, a weakening jobs market, and slowing pay rises.
For savers, easy access rates will likely fall towards 4%, while fixed rates may stabilise, potentially offering better long-term returns. Annuity incomes, currently near all-time highs, could decrease, prompting those considering one to act. Mortgage fixed deals are already falling, with competitive rates expected post-announcement, especially beneficial for those remortgaging.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “A rate cut is never nailed on, but this time round it has at least had a decent dollop of No More Nails. So far, the Bank of England has been maintaining a single quarter-of-a-percent cut per quarter, and it looks on track to deliver the same next week.”
From Elsewhere
Bank of England set to split again in face of inflation, job risks (Reuters)
Fed holds interest rates steady despite Trump pressure (BBC News)
GBP/USD steadily climbs above mid-1.3200s amid a softer USD (FXStreet)
Did You See?
As financial advisers it can be tempting to focus solely on our clients’ finances, but offering wider wellbeing services can not only help them — it can benefit your business too.
If you were to talk about wellbeing services as recently as ten years ago, many clients would have dismissed it as something ‘not for them’. However, attitudes towards wellbeing and support have changed.
An increased awareness of mental health, combined with the impact of the Covid pandemic, the cost-of-living crisis and other societal changes, have highlighted the need for comprehensive wellbeing support as more Brits become comfortable reaching out for help.
Read the full article from Darrell Stone is head of partnership development at Continuum here.
