First Read: AJ BELL PLC "Prologue: Dear CEO Letters and Cash Interest" (Buy) Tam

Research evidence excerpt

First Read: AJ BELL PLC "Prologue: Dear CEO Letters and Cash Interest" (Buy) Tam

Global Research

2 July 2026ab

First Read

EquitiesAJ BELL PLC

Prologue: Dear CEO Letters and Cash Interest United Kingdom

Diversified Financial

12-month rating Buy

What's New

On 2 July 2026, the FCA published CP 26/24 "Simplifying Consumer Investment 12m price target 720p

Disclosures." This proposes simplification to existing MIFID investment disclosure rules.

Proposed changes include simpler up-front cost disclosure rules, regular post-sale

Price (02 Jul 2026) 631p

reporting of the impact product costs have had on returns, and clear communication

with consumers about the interest rates they will receive on their cash balances or any RIC: AJBA.L BBG: AJB LN

fees they pay on cash in investment accounts. The FCA is also codifying double dipping Trading data and key metrics

rules set out in its 2023 Dear CEO letter.

52-wk range 643p-414

Market cap. £2.58b/US$3.45b

What Could This Mean for AJ Bell and other UK platforms?

Shares o/s 409m (ORD)

Competition: We do not expect the cost disclosure changes to significantly increase

Free float 66%

competition in an already competitive industry. Recent months have seen pricing tariff

Avg. daily volume ('000) 1,533

changes by market leaders interactive investor and Hargreaves Lansdown, and an

increase in "zero fee" propositions: e.g. IG Group's zero stockbroking commission, Avg. daily value (m) £8.7

Barclays Direct Investing's zero platform fees. Cash interest revenue risk: The Common s/h equity (09/26E) £0.26b

CP proposes that where firms retain some or all client cash interest, this must be P/BV (09/26E) 9.4x

prominently stated on their website or platform, with the rate payable to the client, and Net debt to EBITDA (09/26E) NM