In recent months, St. James’s Place (SJP) has made headlines by offering compensation to certain customers who were charged ongoing advice fees but did not receive adequate services in return.
This move follows regulatory changes and heightened scrutiny from the Financial Conduct Authority (FCA), which aims to protect consumers and ensure that financial advice providers deliver value for money.
Here’s a closer look at why SJP is taking this step and what it means for affected customers.
Understanding Ongoing Advice Fees
Ongoing advice fees, often charged as a percentage of a customer’s investments, are meant to cover continuous financial advice and support. This includes regular portfolio reviews, updates on financial products, and assistance with changing financial goals.
For many years, these fees were a standard industry practice, justified by the promise of long-term advisory services. However, as scrutiny increased, it became clear that some customers were paying these fees without receiving the level of service they were entitled to.
Regulatory Changes and FCA Intervention
The FCA has introduced stricter rules under the Consumer Duty framework, which took effect in 2023. This framework requires financial services firms to prioritize customer outcomes, including ensuring that products and services offer genuine value.
A key component of these changes is a focus on transparency and fairness in charging structures. Firms are now expected to demonstrate that ongoing advice fees correspond to the services provided. If customers are not receiving regular advice or if the services do not justify the fees, firms may face enforcement actions, including demands for compensation.
SJP’s Response: Compensation Offers
In light of these regulatory developments, SJP conducted an internal review to assess whether their customers were receiving value for ongoing advice fees. The findings indicated that some customers had been charged for services they did not adequately receive, prompting the firm to offer compensation.
What This Means for Customers
If you’re an SJP customer, here’s what you should know:
- Eligibility for Compensation
Customers who were charged ongoing advice fees but received minimal or no advisory services may be eligible for compensation. SJP has been contacting affected individuals directly, but you can also reach out to inquire about your case. - Improved Services Moving Forward
In addition to offering compensation, SJP has committed to improving its service model to ensure that customers receive regular and valuable advice. This includes clearer communication about the services included in ongoing fees. - Your Rights Under Consumer Duty
The FCA’s Consumer Duty provides you with stronger protections. If you believe you have been overcharged or underserved, you have the right to raise a complaint and seek redress.
Lessons for the Financial Services Industry
SJP’s decision to offer compensation highlights a broader shift in the financial services industry. Firms are now under greater pressure to provide transparent pricing and demonstrable value for their services.
For consumers, these changes are a welcome development, offering greater protection and ensuring that advice fees are justified. It’s also a reminder to regularly review your financial services and ask questions about the value you’re receiving.
Final Thoughts
The ongoing advice fee issue at St. James’s Place underscores the importance of regulatory oversight in protecting consumers. While it’s encouraging to see SJP taking corrective action, it’s a clear signal to the entire industry: delivering value isn’t optional—it’s a regulatory and ethical obligation.
If you believe you’ve been affected, click here to enquire with us and understand your option of complaint.
Frequently Asked Questions
You may be eligible to make a claim if you were a customer of St. James’s Place over the past ten years and paid for services, such as annual reviews, that you did not receive. This may include clients who invested in ISAs, pensions, or other financial products through SJP.
The compensation relates to charges that were automatically deducted from clients’ investments for services that may not have been provided, such as ongoing financial advice, portfolio reviews, or investment monitoring. If these services were not delivered, you could be entitled to a refund of these fees, plus interest.
If you were charged for ongoing advice or portfolio reviews and did not receive these services, you may be eligible for compensation. Our team request all of the relevant information from SJP to help assess your case and determine if you’re entitled to a payout.
The amount of compensation varies depending on the fees you were charged and the duration over which you were not provided the promised services. In some cases, clients could recover a significant percentage of the fees paid over several years.
Most of the time, no documents are needed to be able to start your claim. All we need is your Name and Telephone Number. Of course, where documentation or any relevant communication can support your case, you should try and provide to your case representative. Pacific Legal will guide you through the process at all times.
The claims process can vary in length depending on the complexity of the case and the volume of claims being handled. On average, claims may take between 12-16 weeks to resolve, but we will keep you updated throughout the process.
No, Pacific Legal operate on a no-win, no-fee basis. This means you won’t need to pay any upfront costs, and you will only pay a fee if your claim is successful.
Even if you no longer have an adviser or are no longer a client of SJP, you may still be eligible for compensation if you were previously charged for advice or services you did not receive.
There is no strict deadline, but we recommend submitting your claim as soon as possible to ensure it is processed in a timely manner. Certain regulatory time limits could apply depending on when the fees were charged.
To start your claim, simply fill out the online form or contact us at 0141 2806 227. Our team will guide you through the process and help you gather the necessary documents to assess your eligibility.
If you are currently working with a financial adviser, they should provide evidence of the services you received. If they cannot justify the fees you were charged or provide proof of ongoing services like annual reviews, you may be eligible for compensation plus interest.
No, making a claim will not impact your current investments. The claims process focuses on recovering fees for services that were not provided, and it does not interfere with the performance or structure of your investment portfolio.
Even if you were satisfied with some aspects of SJP’s service, you may still be entitled to a refund if you were charged for ongoing advice or portfolio reviews that you did not receive.
If your claim is unsuccessful, you will not be charged any fees. Our no-win, no-fee guarantee ensures that you only pay if your claim is successful.
Pacific Legal specialises in financial claims and has a proven track record of successfully representing clients against major financial institutions. We have the expertise, resources, and experience necessary to navigate complex financial disputes and ensure our clients get the compensation they deserve.
Get in touch
If you think you may qualify for a claim, we’d love to help you get back what you may have lost. Our expert team are ready to hear from you!
01412 806 227
enquiries@pacificlegal.co.uk
