SJP eliminates departure fees in position restructuring
- St James’s Place has long faced accusations of charging customers high amounts.
- The new charging agreement will take effect in the second half of 2025.
St James’s Place has scrapped exit fees for new bond and pension investments in a revamp of its fee structure after facing scrutiny from regulators.
Britain’s largest wealth manager has long faced accusations of excessive fees to clients for financial advice and early withdrawals.
The restructuring will see the “vast majority” of new pensions and bond investments charge up-front and ongoing fees, but with no early withdrawal or gestation period charges.
Updated: St James’s Place has revealed a new fee structure across its core products
The company believes the proposals will lead to greater simplicity and comparability of products, as well as greater value for customers in line with the Consumer Tax rules introduced in July.
SJP will now also separate charges between its investment products, as they have historically been comprehensively disclosed.
Fees for initial and ongoing advisory, investment management and product administration will now be listed separately.
Additionally, charges will be “rebalanced” to “better reflect the value customers see in each element of our proposition,” SJP said.
They are scheduled to come into force during the second half of 2025.
SJP shares plunged last week on reports that it was considering a restructuring of its fee structure.
Investors were concerned that major changes to SJP’s lucrative commission model would have a material impact on revenue and profits.
The group told shareholders on Tuesday that the changes “will affect the shape of the cash result going forward”, reducing the underlying cash result “over the coming years” before “growth accelerates in the medium term and further there”.
Andrew Croft, chief executive of SJP, said: “I am confident that SJP’s ability to deliver and demonstrate value in the future, with this sustainable model of charging for our end-to-end services, is good for customers and represents a exciting experience.” chance.’
SJP also stated on Tuesday that its funds under management grew in the third quarter of this year, increasing by just over £1bn to £158.6bn.
SJP shares They rose 1.6 percent to 682.8 pence in early trading.