SJP is facing challenges as it seeks to recoup money from its advisers, save £500 million, and complete its review of client files after complaints about ongoing advice and fees.
St James’s Place (SJP), the wealth management firm that made headline news over obscure fee structures and non-existent ‘ongoing advice’, has announced that it will recoup part of the £430.6 million redress bill from its partner advisers, depending on how well (or not) they have been keeping records and supporting clients with ongoing portfolio reviews.
In its half-year results announcement (July 2024), SJP CEO Mark FitzPatrick said:
“If there are some partners where records are missing or not available, those gaps will be more pronounced, then they will make a larger contribution. For those where the evidence is intact and able to be demonstrated, they would not make contributions.”
Mr FitzPatrick did not say how much of the £430.6 million bill would be met by partner advisers or where any shortfall would come from.
Debts, cost-cutting and compensation
+ −Amid rising debts (£756 million), St James’s Place plans to cut costs by around £500 million over a five-year period and focus on investing in technology and client service. Some of the changes include introducing a new charging structure and scrapping controversial exit fees.
Mr FitzPatrick stated:
“We need to deliver our simpler and more comparable charging structure and refund those clients where ongoing servicing has not been evidenced historically.”
A large sample of client files dating between 2018 and 2023 has been reviewed, which led to an original £426 million figure being set aside for compensation, but it is understood that a full review of client files where financial advice fell “below the acceptable standard” has not yet been carried out.
The pot of money set aside for client compensation has now risen from £426 million to £430.6 million, and it remains to be seen whether this will be sufficient to cover the claims being made against the firm.
The problems at SJP
+ −Concerns have been raised that existing and former SJP customers have been charged for annual advice reviews, but not always received this service.
SJP admits its model has not delivered long-term value to clients and is taking steps to fix things, starting with an overhaul of its fee structure and paying compensation to clients.
What should I do if I have or had investments with St James’s Place?
+ −If you have held investments with St James’s Place since 2013 and paid for financial advice that you didn’t receive, you may be able to make a claim for compensation.
Our team of experienced financial mis-selling lawyers can help you with the claims process, whether directly with St James’s Place or through the Financial Ombudsman Service (FOS). FOS is an independent body set up to settle disputes between financial institutions and their customers, and it has the power to award refunds and compensation.
Read the Frequently Asked Questions on our website to learn more about the claims process, what is involved, what making a claim will cost and how long it might take.
Worried about making a claim against your financial adviser?
+ −Making a claim against St James’s Place need not affect your relationship with your financial adviser or your investments under management. You are entitled to receive the service you have paid for, which St James’s Place accepts it didn’t always get right; the company has set aside a pot of money for repayment of the fees in cases where they haven’t provided the right service.
TLW Solicitors’ view
+ −Sarah Spruce, Legal Director at TLW Solicitors and Head of the Financial Mis-selling team, says:
“SJP recognises that there will be many complaints about its fees and ongoing advice issues, so we hope that the amount of money it has set aside will be sufficient to cover the refunds and compensation due to customers.
“I would urge anyone who has invested through one of St James’s Place’s partner advisers to come forward and speak to my team. We can review your case and advise on the next steps, including whether you may be eligible to make a ‘no-win, no-fee refund claim.”
TLW Solicitors are Financial Mis-selling specialists – get in touch
+ −Our team has extensive experience taking cases to St James’s Place and/or to the Financial Ombudsman Service (FOS). We have been successful in securing compensation for clients, even if their cases have been rejected previously.
We work hard to ensure that the correct information is submitted, your case is swiftly progressed, and you receive the compensation you are rightfully owed.
If you or a loved one are a current or former client of St James’s Place and believe that you have paid fees for advice you did not receive, please get in touch for a no-obligation conversation about making a ‘no-win, no-fee’ refund claim.
You can call us on 0800 169 5925, email info@tlwsolicitors.co.uk or complete one of the forms below.
Time limits can apply, so anyone wishing to bring a claim should do so without delay.
Minimum claim values apply.
Meet the Team
Meet Sarah, who heads up our experienced Advice Fees compensation team.
Sarah and her colleagues are on hand to help with your claim.
TLW Solicitors pledge to:
- Always fight your corner.
- Explain anything you don't understand.
- Provide full transparency on our charges.
- Never ask for any upfront payment.
- Recover the best compensation we can.
- Keep your personal information safe.
- Respond quickly to any queries.
