St Jame's Place Review

Audaxer

atush wrote: »

What you consider above and beyond i consider normal for paid advice. And I think with SJP you overpaid

It's interesting to read about another side to SJP in Claire's post, as you just usually read about their high fees and why people are silly to use them. Clearly they provide a good service and are worth it in some cases like Claire's. We don't know how much she paid, but clearly she dealt with a very good adviser at a difficult time in her life and was happy to pay what she paid for the service she received. So I don't think we can assume she has overpaid, as clearly she considers the service she received was worth it.

SonOf

I feel she went above and beyond what any IFA would have done.

Nothing you have said indicates anything above and beyond the normal.

Would I have been financially better off with an IFA ?

yes.

Would I have had the experience that I needed facing 2 deaths in my family with an IFA ? ... I don’t think so.

With servicing IFAs, yes you would.

claire21

I do take on board everyone’s points and yes I am someone who knows nothing about investing.

I don’t know how much an IFA does for you , so as an example do IFA’s go to accountants meetings , go to solicitors meetings etc , these type of things where there is no gain to them ? As that has probably been my ‘highlight’ of being with them (along with what I feel happy with on my investment returns obviously)

So it’s for me not just looking at my investment return but how they sorted out all the financial aspects of my life.

SonOf

I don’t know how much an IFA does for you , so as an example do IFA’s go to accountants meetings , go to solicitors meetings etc

Yes if you want them to

IFAs and FAs can do the same thing. Except IFAs offer product from the whole of market. SJP only offer their own expensive, low quality products.

these type of things where there is no gain to them ?

Working alongside solicitors and accountants is routine and normal. Company directors, trusts etc all commonplace.

So it’s for me not just looking at my investment return but how they sorted out all the financial aspects of my life.

How have you got this opinion that an IFA wouldn't do these things? Did SJP tell you that?

claire21

No they didn’t tell me that , I just didn’t know if they did lots of work for no gain also.

bowlhead99

claire21 wrote: »

No they didn’t tell me that , I just didn’t know if they did lots of work for no gain also.

The gain for them is getting in with your family so that they are your first choice for all your family's investment and financial assets planning needs, from which SJP will earn set up fees on the money invested, ongoing management fees on money you keep with them, and exit fees if you try to leave; out of which, they can afford to pay substantial commissions to the individual advisor who sources the revenue for them.

Professional advisers will do home visits where the customer wants it, or refer other professionals (including meeting the other professionals together with their mutual client). SJP are not the only ones that would 'go the mile' - other, independent, advisors can do that too.

If your financial advisor has a big enough marketing budget, and the hundreds or thousands of income from you each year looks like it will add up to a chunky sum over time, they might take you to see the tennis or cricket, a 'free' seminar to explain some services you might like to buy, or invite you to a golf day. If the fee income they hope to secure does eventually come through to them, they can justify the expense, because it's really your money that they wouldn't have got from you if they hadn't kept you happy, so any perks and treats and 'above and beyond' service levels are being paid for out of your own investments pot.

They know some rich clients would like to get a coveted invite to a celebrity golf day. But you had more pressing matters, such as the bereavments etc. The art of being a good salesperson involves working out how to make you happy with their firm, so that they become the obvious first choice for other financial matters that come up and any spare money that needs investing across your extended family or friends, because you will spread the word about it. It does not mean the financial products are best in class or good value for money compared to competitors. With a high margin service the idea is to make it seem like it's a great service so you don't compare them with rivals on price.

When they 'sorted a solictor' for your Dad, they likely earned a referral commission or some favours such as getting work referred back to them.

When they helped with your grandmother in relation to the 2-year Octopus product (likely one of the Octopus IHT planning services such as AIM ISA portfolio, requiring a 2-year hold period to qualify for the assets to be outside her estate) it is not clear whether you mean they were helping your grandmother invest in the Octopus product (to earn a commission for them as advisor), or helping the solicitor deal with the IHT consequences of the product after your grandmother's passing.

In the latter case it would be either because the solicitor to whom they referred you was not very familiar with the the IHT rules, which doesn't sound very good; or to make it sound like it was a complex product and help to have the best chance of ensuring the monies inherited by the family were taken away from Octopus and invested with SJP's own competing products so you can all have a nice simple life (and large SJP fee income) going forward.

I am not saying your individual advisor didn't do a decent job, working within the parameters they could. Just that when something seems great so you don't focus so hard on the cost of it all, you are not being a money-saving-expert, which is after all the name of the forum here. You'll end up paying whatever they say the going rate is, rather than what the going rate actually is. But few of us can claim to be a money-saving-expert at all times is not a bad thing - there are plenty of other things to spend time on, especially when you have dementias and other physically or emotionally draining things to be getting on with in your family. Someone who says - you don't have much experience of this, don't worry, I'll handle it for you, no need to shop around, my fees will be fine... is difficult to turn down sometimes.

claire21

Thanks for reply .

All I can say is someone asked why do people go with them and I’ve just tried to answer why I did , was it the right or wrong decision is up to the individual. As I haven’t delt with the same set of circumstances with an IFA I can’t give any balance in judgement. I’ve tried to be truthful from the only point of view I have through my experience.

DrSyn

I wonder if the people who set up SJP have read this book ?

"How to win friends and influence people" written by Dale Carnegie
and copy written 1938.

It's a very good book on applied physiology and what sprung to mind on reading the post by claire21.

OldBill

claire21 wrote: »

Thanks for reply .

All I can say is someone asked why do people go with them and I’ve just tried to answer why I did , was it the right or wrong decision is up to the individual. As I haven’t delt with the same set of circumstances with an IFA I can’t give any balance in judgement. I’ve tried to be truthful from the only point of view I have through my experience.

Glad you found the help you needed when you needed it, claire21.

But you're wasting your time trying to persuade the regulars on these forums that SJP are anything other than the financial equivalent of the Devil incarnate.

SonOf

But you're wasting your time trying to persuade the regulars on these forums that SJP are anything other than the financial equivalent of the Devil incarnate.

They are not the Devil incarnate. However, they are a salesforce that uses sales techniques in an industry that has largely moved on from that and they use a charging structure that is similar to commission (that was banned in 2013). They are also the only advice firm to have exit charges.

Their charges are high and their products are nothing special.

In all, they are exactly what you expect from a Wealth Management company. And that is why people should avoid all wealth management companies.

Remember his is a money saving site. SJP are one of the most expensive, if not the most expensive ones out there. So, its obvious what the responses are going to be here.