This compares to a profit of £5.9m for the first half of 2010.

This loss was due to lower adviser remuneration across product categories ahead of the RDR.

A statement from the company read: “In 2011, the rate of income paid for distribution activity reduced, as a result of the equalisation of Partner remuneration across product categories in anticipation of the RDR.

“The associated drop in income results in the reporting of a profit of £nil (2010: £5.9m) from distribution activity in the period, which is lower than in the same period last year.”

Overall, profits for the company increased by over 50 per cent to £55.3m, up from £36.3m in the first half of 2010.

Assets under management increased to an average of £28bn, a 27 per cent rise on the same period last year.

David Bellamy, chief executive of SJP, said: “I am delighted to be reporting another very strong set of results and significant dividend increase. The results were particularly pleasing given the current economic environment, sovereign debt concerns and fragile stock markets.

“We continue to attract new funds from both new and existing clients who value the advice offered by our Partnership, the breadth of our investment proposition and our quality of service.”

The statement also said the firm would be relaunching its St James’s Place Academy to supplement its recruitment activity in hiring new fund managers.