The Sunday Times has recently been running a series of articles about St James’s Place that have resulted in some (cough) interesting comments under the articles and on Twitter, both attacking and defending SJP – although the defence case has generally been from SJP partners.
It seems that some things are changing with the culture; with the axing of the overseas trips and cufflink rewards for hitting sales targets.
As yet though, there is no word on any changes to its fees or, more particularly, the way they are disclosed.
Now, I am the last person to defend SJP’s charges. Indeed, I have been responsible for more than a few of those comments on Twitter.
I do have some sympathy though, that they get such a hard ride when other companies will charge as much if not more.
I am the last person to defend SJP’s chargesOther vertically integrated companies will be charging similar levels for their offerings. I can think of one where the funds plus platform will be about 1.75 per cent, add an advice charge to that and you are up to 2.5 percent plus.
Depending on the figures you use, that is comparable or more expensive than SJP.
Except that is not thewhole story.
The SJP fees have no initial charges, they are built into the ongoing. These companies will charge you an initial fee as well, and then the ongoing fees are comparable to SJP.
On plain costs the client will have more of their money invested with SJP at the outset because there is no initial fee and then they pay a similar cost each year.
They are far from alone at this level either. In fact, it is reasonably typical in other vertically integrated companies I have looked at.
Now I still think SJP is expensive and deserves a lot of the stick it gets, yet its charges seem to be no more than those charged by a number of other companies and advisers.
Personally, I just wish it would set out its charges in a clearer manner and move its culture into the 21st century.
It seems some things are changing. Let us hope it is not a paper exercise and there are real changes to benefit its clients to come as well.
Darren Cooke is a chartered financial planner at Red Circle Financial Planning
