Wealth management firm St James’s Place (SJP) has revised its charging structures following pressure from the financial regulator.
The FTSE 100 company, which is headquartered in Gloucestershire with offices around the Ƶ, said the changes would apply to the “vast majority” of new investment bonds and pensions.
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The new structure will operate without any early withdrawal charges (EWC) or gestation period, as is already the case with SJP’s unit trust and ISA business.
Bosses said charges across all its ‘wrapper asset funds’, which have historically been disclosed primarily on an all-inclusive basis, would now be separated into component parts, which they said would comprise initial and ongoing advice, investment management, and product administration which will be tiered for larger investments.
The board said the changes were designed to reduce overall ongoing charges for existing investments across core products and would come into effect in the second half of 2025. The company’s senior leaders added that the changes would reduce SJP's underlying cash over “the next few years”.
The revamp comes after the Financial Conduct Authority introduced new industry rules to protect savers and investors from fees and charges deemed to be unfair or not representing value for customers.
SJP chief executive Andrew Croft said: “We have always been confident that SJP offers its clients real value that helps individuals and families achieve financial wellbeing. However, it is increasingly evident that consumers are seeking simple comparability, and this has been reflected in regulatory trends too, as highlighted with the Assessment of Value and Consumer Duty regimes. The review of our charging model reflects these developments.
“I am confident that SJP's ability to both deliver and demonstrate value in the future, with this sustainable model of charging for our end-to-end services, is good for clients and represents an exciting opportunity for SJP."
In a trading update also posted on Tuesday (October 17) SJP reported funds under management of £158.5bn as of the end of September, up from £157.5bn from the end of June.
Mr Croft said: “Despite the challenging operating environment, we continue to generate significant levels of net inflows, once again demonstrating the ongoing resilience of our business model.
“Looking forward, we are beginning to see signs that inflation is moderating and that the current cycle of interest rate increases may be reaching a peak, bringing some optimism that this will ease the pressure on clients and will, in due course, provide for a more favourable operating environment over time.”
In its last full financial year, the company said it had seen its second best year for new business flows in its history, with underlying cash reaching an all-time high of £410.1m.
