St James’s Place property fund clients pay around £3 million in monthly fees and can’t access their money during the winding down period.
Wealth management firm St James’s Place (SJP) is closing its underperforming property fund, but the process will take up to two years. During this time, clients have been told that they will receive some money as assets are sold but cannot redeem their investment – and will still have to pay fees.
SJP made headline news in early 2024 when details of its complex fee structure and issues with ongoing advice were uncovered. Clients have been paying high management fees and additional exit fees, with some not having received ongoing annual reviews. St James’s Place has set aside considerable funds to compensate clients complaining about advice fees and has since overhauled its fee structure.
The latest update on SJP’s property funds, which consist of a unit trust and ‘life and pension strategies’, reveals that the total assets in the funds are worth around £1.8 billion. The fund was suspended in October 2023 and an SJP spokesman has said that winding it down over a period of time would allow them to “maximise value” for clients.
Clients have continued to pay fees of 2.35 to 2.5% since October 2023, which are split between SJP and the fund manager, Orchard Street Investment Management. It is calculated that the total fees paid monthly by clients are in the region of £3 million, which will have to be paid throughout the winding down period.
TLW Solicitors’ point of view
+ −Sarah Spruce, Legal Director at TLW Solicitors, said:
“The latest news is another blow to those SJP clients who are locked into their investments. Paying fees to a management company for a fund that has been underperforming for years must feel unfair and seems to go against what industry watchdog, the Financial Conduct Authority is trying to achieve with its ‘Consumer Duty’. The FCA’s new rules were introduced to ensure financial services providers prioritise customers’ needs, focusing on fairness and value for money.
“In terms of its complex fee structures and ongoing advice, SJP knows it has made mistakes and set up an internally-run redress scheme to offer compensation. While this is a positive move, the scheme only addresses the issue of ongoing advice fees, not other complaints against SJP. Another concern is that, under this approach, it is SJP themselves that decides who is entitled to a refund of fees and the amount.
“I would urge anyone who may be concerned about their investments with SJP to get in touch with our specialist team for a free, confidential, no-obligation discussion to see if they are eligible to make a ‘no-win, no-fee’ refund claim.”
No-win, no-fee SJP compensation claims
+ −TLW Solicitors’ experienced financial mis-selling lawyers operate on a ‘no win, no fee’ basis. They can assist you throughout the compensation process, whether your case is settled early with SJP directly or through the Financial Ombudsman Service (FOS). FOS is an independent, government-backed organisation responsible for resolving disputes between financial institutions and their customers.
We have extensive experience in successfully presenting cases to FOS and securing compensation for clients, even if they have been previously rejected. We will ensure that the correct claims information is submitted, your case is processed efficiently, and you receive the compensation you are rightfully owed. If you have been affected, as well as a refund for overcharged fees, you may be entitled to the loss of growth on the funds or interest.
Find answers to some of your Frequently Asked Questions about making an SJP refund claim on our website, including what the claims process entails, the information needed to make a claim and whether making a claim will impact your investments with SJP.
TLW Solicitors can help
+ −If you or a loved one are a current or former client of St James’s Place and believe you have paid fees for advice you did not receive, you may be entitled to compensation.
Contact TLW Solicitors for a no-obligation conversation about your possible SJP 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 case values apply.
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