Troubled Wealth Management Firm, St James’s Place, Expected to Drop Out of FTSE 100

The FSTE 100 is an index of the largest 100 companies on the UK stock exchange by market capitalisation (shares multiplied by share price), also known as the company’s ‘market value’. FTSE Russell, a subsidiary of the London Stock Exchange, performs a review of the FTSE indexes each quarter to confirm which companies will enter – and which will exit – the FTSE 100 and 250.

In a press release distributed in May 2024, the LSEG listed the expected exits from the FTSE 100, including SJP; the wealth management firm is now expected to feature in the FTSE 250 index instead (the top 250 companies by market value). The drop comes as the firm’s share price fell by 57% in the past 12 months, with a 26.5% fall in the year to date. SJP has been in the FTSE 100 index since March 2014.

Over recent months, St James’s Place has been in the headlines for various reasons relating to hidden advice fees, high exit fees, and unsuitable advice.

SJP topics we have recently highlighted include:

• £18.5 billion of SJP assets in ‘Dog Funds’ across three portfolios
• The Financial Ombudsman Service (FOS) ruling that SJP clients were given unsuitable investment advice
• Former England footballer Chris Smalling suing SJP over undisclosed fees
• SJP ring-fencing £426 million to cover expected client complaints relating to advice fees

Other notable stories about the firm include:

• SJP announcing an overhaul of its fee structure after the 2023 Financial Conduct Authority (FCA) crackdown, known as the ‘Consumer Duty’
• The Financial Ombudsman Service (FOS) upholding several complaints against SJP relating to the firm’s unsuitable investment advice. As a result, current and former clients of the wealth manager have received compensation or reimbursement for poor returns resulting from the advice they were given.
• SJP’s net inflows (the money retail investors put into mutual funds) at the lowest point since 2012.
• Fund management company, Liontrust Asset Management, dropping SJP from its Sustainable Future Managed fund due to it being “frustrating”, “slow”, and “exposed to legal recourse”.

Sarah Spruce, Legal Director at TLW Solicitors, heads up our experienced Pensions and Investments Claims team and says:

“There have been a number of concerning headlines about SJP since the start of 2024, and I can understand why current and former clients may be getting concerned about their investments with the firm.

If you have investments with SJP and are worried about mis-sold products, unsuitable advice, or hidden fees, speak to a member of my team today. We can have a no-obligation discussion about your options and whether you may have the basis of a ‘no-win-no-fee’ refund claim.”