<!–
<!–
<!– <!–
<!–
<!–
<!–
Up to 100,000 St James’s Place customers could be in line for a refund after paying for annual checks they never received.
The number of potential claims, representing a tenth of clients, is much higher than Britain’s biggest wealth manager had previously indicated.
The FTSE 100 firm recently surprised investors by setting aside £426m to cover the likely cost of compensating clients for the “ongoing” services its network of financial advisers should have provided them.
Poor record keeping dating back to 2018 means St James’s Place does not know how many customers could be affected. But since 2021 it uses a new computer system, which gives it more evidence to determine what services were provided to clients.
It’s the latest upheaval for the company, which has struggled for years with criticism over its high fees and lack of transparency.
Losing count: Poor record-keeping dating back to 2018 means St James’s Place doesn’t know how many customers could be affected
SJP shares have continued to fall since it booked the £426m. They are now trading at £4.25, a drop of more than a third so far this year and a far cry from their peak of £16.83 two years ago.
Last year, SJP stopped charging 2 percent of its nearly 1 million clients for lack of evidence that they had received the advice service, meaning that 20,000 clients had their fees waived. Experts say that figure is likely an underestimate.
Philip Rose, of investment firm Halwyn Capital, said the size of the sum intended to compensate aggrieved clients suggests the number of people affected “will be much higher”.
Clients typically pay 0.5 percent of their SJP-managed assets for an annual review. This means that a customer with £250,000 invested would pay £1,250 a year for the service.
The falling share price threatens the wealth manager’s place in the FTSE 100 index of leading shares as it is now worth just £2.4bn.
It recently bowed to pressure to offer better deals under new consumer rights rules that force financial firms to focus on “fair value” and “good outcomes” for customers.
Controversial early withdrawal fees for all new products will be eliminated in the second half of 2025.
But a Mail on Sunday analysis found new pension fund customers would soon pay more, and would continue to do so for up to 17 years. Customers are also struggling to deal with a “deferred sales charge” of 6 percent of their assets for surrendering a policy.
Many existing customers don’t realize they incur charges whether they leave early or not.
“This misunderstanding greatly benefits the SJP,” Rose added.
St James’s Place said it had taken expert advice in calculating the amount of estimated depreciation. She said fees and charges are clearly disclosed.