Why St. James’s Place owe their customers compensation

Over the past year, what’s now being referred to as the “St. James’s Place scandal” has rocked the UK’s wealth management industry.

As one of the UK’s biggest wealth management firms, St. James’s Place was supposed to provide sound financial advice. But they have now admitted to charging clients ongoing advisory fees, even in cases where the promised financial reviews and advice were never delivered.

In response, £426 million has been set aside by SJP to refund affected clients.

If you were a client of SJP within the last 12 years, you may be entitled to some of this compensation. Read on the find out the details.

What happened at St. James’s Place?

St. James’s Place built a reputation for offering tailored wealth management services to a wide range of clients. However, behind the polished image was a fee structure that was difficult to understand and, in many cases, failed to deliver value for money.

SJP first came under heavy scrutiny over its complex and costly fee structure. Many experts argued that the way clients were being charged was neither transparent nor fair.

A big part of this was the way that clients were routinely charged ongoing advisory fees. These were annual payments meant to cover regular financial check-ins and portfolio reviews. But many clients have since reported that these promised services never took place.

The situation escalated when the Financial Conduct Authority (FCA) launched an investigation as part of its wider Consumer Duty rules, aimed at protecting consumers from unfair financial practices. The result was a wave of complaints, many lodged through claims management firms, revealing that clients may have been paying for years of advice that was never actually provided.

In response to the mounting regulatory pressure, and a surge in complaints pressure, SJP announced several major changes:

• £426 million set aside for client compensation

• A full “historic service review” to identify affected clients

• Plans to simplify its charging structure

• The removal of the much-criticised early withdrawal charge for new customers

Not surprisingly, the scandal led to a sharp decline in SJP’s share price, as confidence in the firm’s business practices took a serious hit.

Could you be one of the clients owed money?

You may be eligible for compensation if you were a St. James’s Place client within the past 12 years and paid ongoing advice fees but your adviser failed to:

• Conduct regular, scheduled financial reviews

• Update your investment strategy based on changes in your life circumstances

• Reassess and discuss your risk appetite regularly

These services were supposed to be covered by the fees you paid. So if they weren’t delivered, you may be entitled to a refund.

What to do next

Thousands of people may have overpaid SJP for services they never received. If you think you could be one of them, don’t miss your chance to make a claim.

Barings Law is currently helping individuals across the UK claim back what they’re owed from SJP. They specialise in financial mis-selling and provide a simple, no win–no fee service — meaning you won’t pay anything unless your claim is successful. If you do win, their fee is 25% + VAT.

Even if you no longer have your original documents, Barings Law may be able to help retrieve them for you. So make sure you don’t miss out on what you’re owed.

Start your claim now