St James's Place Cancel Exit Fee

Wealth manager St James's Place (SJP) has announced an overhaul of its fee structure, including the elimination of exit fees for new investment bonds and pensions purchased from the company.。The move aligns these products with SJP's unit trust and ISA businesses。

The wealth manager also said it would improve the transparency of the fee structure by splitting up fees, which will not take effect until the second half of 2025.。

Exit costs under pressure

The company has reportedly been under pressure to revise its fee structure, and other firms in the wealth management industry have been criticising it for overcharging and being opaque.。

Last week, the Financial Times ran a report saying the SJP was facing calls from the FCA for it to adjust its fees to ensure it complies with new consumer responsibility rules that came into effect at the end of July.。

SJP's shares fell sharply after the report, falling as much as 20 at one point..0%。

Good for customers, bad for shareholders

On the surface, this should be good news for SJP's customers, especially those who buy new products from the company。

However, this is not the case for the company's shareholders, who now face a 1.£400 million to £1 million.£600 million shock。SJP's share price has fallen nearly 40 percent so far this year..0%。

Outgoing SJP CEO Andrew Croft said: "(These changes) are designed to position the business for continued success by establishing a future fee structure that reflects the evolution of consumer participation in retail financial services and aligns with the long-term value we provide to our customers through partnerships.。

St James's Place should have changed its charging practices long ago, and this may have been clear when the FCA began implementing consumer liability regulations。

More than a year ago, in July 2022, the FCA issued final rules and guidance, so the wealth manager has at least 14 months to revise its business model, but is still in a hurry today.。