Escaping SJP

ba_baracuss

As above, my family, comprising my parents and myself, would like to leave SJP but apart from their outrageous exit charges, this is further complicated by a discretionary trust covering approx half of the funds. I have read some confusing stuff suggesting that this is basically impossible, which seems ludicrous to me, so I was wondering if anyone has either encountered this or if anybody knows what it would involve. Also, if anybody has managed to work out how their exit fees are calculated I would be most appreciative; my current understanding is that it is on a sliding scale of 6% decreasing by 1% with every year with no further investment into their fund, but I am far from certain since they make it very difficult to find out.

dunstonh

, this is further complicated by a discretionary trust covering approx half of the funds

And let us guess, it is all held in an investment bond.  Just to add some taxation woes (potentially).

I have read some confusing stuff suggesting that this is basically impossible, which seems ludicrous to me,

I can only say what I have found but other IFAs have mentioned it as well.   SJP seem to like putting stuff into investment bonds and then in trust as it makes it harder, sometimes impossible to remove SJP in a relatively short period.

Also, if anybody has managed to work out how their exit fees are calculated I would be most appreciative; my current understanding is that it is on a sliding scale of 6% decreasing by 1% with every year with no further investment into their fund, but I am far from certain since they make it very difficult to find out.

Just look at the current value and the surrender value.  The difference is the exit charge.

ba_baracuss

Thanks for the reply.

dunstonh said:

And let us guess, it is all held in an investment bond.  Just to add some taxation woes (potentially).

Yes.

I can only say what I have found but other IFAs have mentioned it as well.   SJP seem to like putting stuff into investment bonds and then in trust as it makes it harder, sometimes impossible to remove SJP in a relatively short period.

What would doing so involve?

Just look at the current value and the surrender value.  The difference is the exit charge.

How do you find the surrender value? Ask them?

ColdIron

I think the sliding scale exit fees only apply to their pension products, not ISA or unwrapped. But do check yourself

TBC15

Get out while you can. Years down the line only feeling one pair of hands in your pockets will feel like you have won the lottery.

ba_baracuss

ColdIron said:

I think the sliding scale exit fees only apply to their pension products, not ISA or unwrapped. But do check yourself

Thanks. It's hard to find anything clear from them but I'll look harder.

ba_baracuss

TBC15 said:

Get out while you can. Years down the line only feeling one pair of hands in your pockets will feel like you have won the lottery.

Haha. Sadly my parents have had many pairs of hands in their pockets for far too long and have been blissfully unaware. I shudder to think how much they've been rinsed for over the years.

solidpro

If you have access to their portal, you can go to 'my wealth' and it shows you the total value and today's encashment value, which is what you'd get if you ended the relationship today (it deducts exit fees). Do you have access to the portal?

Mysterz

Remember surrendering an investment bond (typically used within a trust) is a chargeable event. Any gain is potentially subject to income tax. There are some rules to be aware of that mean it may be beneficial to take advice but that will cost too. Bit of a vicious circle but hopefully not as viscous as SJP.