Stocks & Shares ISA

jackmorris1

My mother and her boyfriend set up a Stocks & Shares Junior ISA for me when my parents split in 2017 with inheritance money I was to receive on my 18th birthday from my Grandma. The money was invested through St. James Place around my 16th birthday, in a fixed term contract till I'm 21 without my permission or even mentioning it. The contract cost 5% to setup and any early take out costs 6%, decreasing by 1% per year, making it around 4% as of 2019. I don't want or need a financial advisor and don't want to pay any charges, and upon reading about St. James Place I'm frankly horrified my mum even agreed to go with them. I am not sure where I stand at this point as I have been receiving letters for my investment, asking for me to fill out various forms and give in my national insurance number. I don't obviously want to fill anything out before I understand what it is I am agreeing too. Its a very sore subject the investment so I try not to bring it up in conversation with my mother but was wondering if what she has done is actually legal? Any help would be great.

ColdIron

Of course it's legal. SJP may be eye-wateringly expensive but they do not operate outside of the law

xylophone

Presumably your mother was Trustee of money left to you in your grandmother's will.

As Trustee, she did have the right to control the funds until you were 18.

When you were 16, she decided to open a stocks and shares Junior Isa with SJP.

The amount she could have contributed to the JISA in the tax year 2017-18 was limited to a little over £4000 - similarly for 2018-19 and 19-20.

Do you know how much has been invested within the JISA and if less than the amount of the inheritance from your grandmother, have you now received the balance?

With regard to the JISA, now that you have reached your 18th birthday, you now have access to the JISA which will now be simply a stocks and shares ISA which it is up to you to manage - in fact, you would have had the right to control (although not access) the account from age 16.

https://www.sjp.co.uk/~/media/Files/S/sjp-group/document-library/brochures/2017/SJP4329-VR6-0817-SJPIA-SID.P

You are unhappy with the product - you could try writing to SJP explaining that although you were 16, when the product was opened, you were not consulted in any way and if you had been would not have chosen it.

You could request a penalty free release to an ISA ( or indeed any other product) and see what they have to say.

If they refuse, you could try a formal complaint and ultimately a complaint to the ombudsman.

https://www.financial-ombudsman.org.uk/consumers/how-to-complain

pip895

SJP may not be an investment that "MSE types" would chose but I am sure you Mother had your best interests at heart when she chose them.

Thrugelmir

As your guardian your mother had the legal authority to manage your affairs.

jackmorris1

ah thank you all for your help. What Xylophone said is more of what i was getting at, i was unsure if a complaint process was something that can be done. I will look into this once i know more about the valuations etc.

Vortigern

We are often reminded that putting money in stocks and shares is a long term investment, sometimes with a suggested minimum term of ten years.

Has SJP given poor advice by putting a minor into a long term product, when that minor might expect to withdraw in 2 (or 5) years?

What would the regulator think of such 'advice'?

jackmorris1

I’m not sure of what the personal advisor has said to my mother as i was never asked to be a part of the conversations and it was always very hush hush so to speak. I was left around £5500 and i know the full £4000 from the tax year was invested however i don’t know what happened to the other £1500 and have not received it.

I therefore can’t comment on whether they were advising her to make a long term investment but i know my mother has said in the past that she has done it so “you don’t spend it” as she believes i would blow it all at once. I’ve been in charge of my own finances for around 4 years now and have always been very trustworthy and never done anything stupid, and unfortunately my mum is very easily influenced by her other half who i suspect had a large part to play due to him already having dealings with the financial adviser from SJP

Thrugelmir

Vortigern wrote: »

Has SJP given poor advice by putting a minor into a long term product, when that minor might expect to withdraw in 2 (or 5) years?

What would the regulator think of such 'advice'?

SJP weren't advising the minor though.

steampowered

Very often people try to lock inheritances away until people are 25 (or even 30).

To be honest I'd count myself lucky to be getting an inheritance at 21. You don't need the money when you are 18.

SJP do charge high fees, but to be honest I don't imagine it would be that bad after a few years. Just wait until there are no early withdrawal fees than move to another provider.