Leaving SJP

u03ada8

Does anyone have experience with leaving SJP and finding an IFA or managing their own pension & investment portfolio? I'm a newbie, 33 year old female & business owner looking to take control of my money after losing trust in my advisor at SJP.

dunstonh

Does anyone have experience with leaving SJP and finding an IFA or managing their own pension & investment portfolio?

yes.......

LHW99

You will find many threads on SJP if your search the threads.

A lot of people here DIY, but using an IFA can be sensible to start you off. You don't have to agree to ongoing servicing if you don't want to, and some IFA's can set up on platforms where you are able to do things yourself as well as going back to the advisor for specific things (I believe).

Watch out for SJP exit fees. They operate for a long time (6 years?) and have only changed them for new customers as of this year.

gm0

Ah bless their little gold thread embossed cotton socks

The flip side of the transition away from EWC (that already no longer applies to new customers) and the other platform changes to pensions in flight -  is that these charges MAY disappear for existing customers in the next couple of years.  Or not.  Regulator movement towards ban etc. Market conditions.  How much they grow or don't  They have to move some guaranteed years of future managment fees out of the forecast covering the gap by growth.  Their circus and monkeys.

For customers - your contributions drive what your size of overhang is.    Which is on the annual report to be momentarily fair.

I think the small client / platform and 2022- Polaris migration is about dropping the gap to other products a bit while retaining margins.   Still terrible.  Just not quite as terrible by a % from being cheaper to run. 

I have a family member with them and I would not want to exit them the month before they cancel EWC finally for  existing customers.  A needless waste of money.  But neither would I want to wait 3 years waiting to see if they make the jump.  Do the math.  Take a view.

And pressure applied to the local adviser / sales agent for clarity would be sensible.  You won't get any.  
But pressure SHOULD be applied so that the consistent customer feedback is that this needs to go and soon now that they have stopped it for new.  Just stopping it for new contributions from NOW would be the minimum they should do.   And run it off. 

Or just discard it entirely though that is more problematic for them accounting wise in terms of baked in future revenues on ongoing fees locked in on a very large asset book - becoming variable revenues.

They will want to bury the lump of bad news with growth.  Or trickle it out with a phased customer migration........over several years.......  I am sure they have modeled this carefully.

Albermarle

u03ada8 said:

Does anyone have experience with leaving SJP and finding an IFA or managing their own pension & investment portfolio? I'm a newbie, 33 year old female & business owner looking to take control of my money after losing trust in my advisor at SJP.

There are lots of threads on here regarding.

experience with leaving SJP 

finding an IFA ( not necessarily just after leaving SJP) 

 managing their own pension & investment portfolio? 

Plus many threads that cover all three or two of the subjects at the same time.

Perhaps you can start with these current/recent ones.

Trapped at St James place — MoneySavingExpert Forum

What to expect from an IFA? — MoneySavingExpert Forum

Pension performance — MoneySavingExpert Forum

morty85

I am a Financial Planner for a large firm and there are a few main things you will want to consider.

As reiterated, first you need to understand what if any tranches of investments you've made have exit fees associated to them.

These exit fees have now been scrapped for new investments and new clients, but legacy contributions are likely to still be at the mercy of 6 year exit charges from date of deployment of funds. This can obviously affect what you're able to transfer out initially without losing value due to fees to move your money. You can obtain a statement from SJP on any exit fees liable on your plans.

There are a host of options available to you and a few things to consider.

- Do you have the confidence, time and level of understanding to self manage your own investments?

If so a DIY platform may be useful. Most also offer lower cost 'coaching' which doesn't constitute formal advice but is intended to help guide you on your decision making if you don't wish to pay for ongoing planning advice, this can include on how to construct a suitable portfolio of investments. Some will provide you the option to convert to full advice with other advisers being able to fully service this need within their firm (think Hargreaves Lansdown/ Bestinvest+Evelyn Partners, etc) if you feel you dont or no longer wish to self manage. This can reduce the need to move assets if a provider also offers this service 
If you feel it isn't right for yyou to DIY given the additional involvement required on your behalf, having your plans managed by a professional takes all the hassle off your hands and a co-working relationship should form, the adviser should be able to offer you the ability to make advised decisions(they can advise you on what they feel are the right investments for you and you have the final say) or discretionary decisions on your investments (they provide advice and manage them for you but keep you informed of what's being recommended and why).

- Do you feel like you need to pay for annual reviews?

Or, would you have enough trust in a new adviser (given your recent experience) to have your plans set up and adjusted so they are suitable for you now and a suitable risk managed plan established so you can let the professionals manage things for you without the need for regular reviews?

This means you only pay for an advice event as it arises rather than fees being drip fed out each year.

If you have complex planning needs and variable personal circumstances then regular reviews can help keep things on track for you and they can be adjusted and adapted as required to meet your needs.

- What is your tolerance on cost?

You will likely have to pay for new advice fees on how your post-SJP monies are managed.
A lot of time, research and expertise goes into formulating advice and this is a something that will result in new added costs. Some firms work on a fixed fee basis dependant on the amount of work involved (which I think is fairest on the client), others will charge a percentage fee based on the value of the funds to be managed (e.g. 2% advice fee)

- You should also consider the merits of using an IFA vs a restricted adviser.

Just because an IFA is technically whole of market doesn't necessarily mean you will get a better solution than a restricted adviser.
Each firm has different due diligence and research methods and different ways in viewing risk management and controls on how funds are invested.

Often an IFA (which I have also been) will build a portfolio of preferred product and investment providers that they typically use with clients (but they can also select whatever they believe is best based on individual client circumstances), this effectively creates a mini 'panel', essentially similar to how a restricted adviser would operate.
However a restricted adviser (which I am now) may only use a select group of products and providers due to their good financial credentials, cost effectiveness, quality of product and service, range of services and because its been determined they are the best available options for their clients and the firms have high conviction confidence using them.

- Transferring out and receiving advice will take time.

 The whole process can take a number of weeks or months as your new adviser/firm will need to gather information on your current plans on you as an individual, this will include issuing signed (by you) letters of authority giving your new firm the ability to obtain information on your existing plans, so your current SJP adviser is likely to be made aware of your intention to explore your options available to you by issuing these letters to SJP.

I hope this helps provide some useful information.

Essentially, do your research, meet with a few different advisers and use the above as a reference on finding the best solution for you.

Much of the DIY online providers will be very similar on cost and functionality so it's more to do with any buying and selling charges that may be incurred when managing your portfolio that will make the greatest difference.

handful

I was with SJP for part of my pension for a few years and was aware of their diminishing charges for 6 years but what I stupidly failed to realise was that it's 6 years from the date of every contribution, not just from when I transferred in. When I realised this I stopped contributions and waited for a couple of years and redirected my contributions into a SIPP. I also started to take much more of an interest in my pensions investment options with the help of many on this site and from a lot of research elsewhere I have now moved away entirely from SJP. My only regret (apart from choosing them to invest with in the first place) was to not move sooner.

u03ada8

morty85 said:

I am a Financial Planner for a large firm and there are a few main things you will want to consider.

As reiterated, first you need to understand what if any tranches of investments you've made have exit fees associated to them.

These exit fees have now been scrapped for new investments and new clients, but legacy contributions are likely to still be at the mercy of 6 year exit charges from date of deployment of funds. This can obviously affect what you're able to transfer out initially without losing value due to fees to move your money. You can obtain a statement from SJP on any exit fees liable on your plans.

There are a host of options available to you and a few things to consider.

- Do you have the confidence, time and level of understanding to self manage your own investments?

If so a DIY platform may be useful. Most also offer lower cost 'coaching' which doesn't constitute formal advice but is intended to help guide you on your decision making if you don't wish to pay for ongoing planning advice, this can include on how to construct a suitable portfolio of investments. Some will provide you the option to convert to full advice with other advisers being able to fully service this need within their firm (think Hargreaves Lansdown/ Bestinvest+Evelyn Partners, etc) if you feel you dont or no longer wish to self manage. This can reduce the need to move assets if a provider also offers this service 
If you feel it isn't right for yyou to DIY given the additional involvement required on your behalf, having your plans managed by a professional takes all the hassle off your hands and a co-working relationship should form, the adviser should be able to offer you the ability to make advised decisions(they can advise you on what they feel are the right investments for you and you have the final say) or discretionary decisions on your investments (they provide advice and manage them for you but keep you informed of what's being recommended and why).

- Do you feel like you need to pay for annual reviews?

Or, would you have enough trust in a new adviser (given your recent experience) to have your plans set up and adjusted so they are suitable for you now and a suitable risk managed plan established so you can let the professionals manage things for you without the need for regular reviews?

This means you only pay for an advice event as it arises rather than fees being drip fed out each year.

If you have complex planning needs and variable personal circumstances then regular reviews can help keep things on track for you and they can be adjusted and adapted as required to meet your needs.

- What is your tolerance on cost?

You will likely have to pay for new advice fees on how your post-SJP monies are managed.
A lot of time, research and expertise goes into formulating advice and this is a something that will result in new added costs. Some firms work on a fixed fee basis dependant on the amount of work involved (which I think is fairest on the client), others will charge a percentage fee based on the value of the funds to be managed (e.g. 2% advice fee)

- You should also consider the merits of using an IFA vs a restricted adviser.

Just because an IFA is technically whole of market doesn't necessarily mean you will get a better solution than a restricted adviser.
Each firm has different due diligence and research methods and different ways in viewing risk management and controls on how funds are invested.

Often an IFA (which I have also been) will build a portfolio of preferred product and investment providers that they typically use with clients (but they can also select whatever they believe is best based on individual client circumstances), this effectively creates a mini 'panel', essentially similar to how a restricted adviser would operate.
However a restricted adviser (which I am now) may only use a select group of products and providers due to their good financial credentials, cost effectiveness, quality of product and service, range of services and because its been determined they are the best available options for their clients and the firms have high conviction confidence using them.

- Transferring out and receiving advice will take time.

 The whole process can take a number of weeks or months as your new adviser/firm will need to gather information on your current plans on you as an individual, this will include issuing signed (by you) letters of authority giving your new firm the ability to obtain information on your existing plans, so your current SJP adviser is likely to be made aware of your intention to explore your options available to you by issuing these letters to SJP.

I hope this helps provide some useful information.

Essentially, do your research, meet with a few different advisers and use the above as a reference on finding the best solution for you.

Much of the DIY online providers will be very similar on cost and functionality so it's more to do with any buying and selling charges that may be incurred when managing your portfolio that will make the greatest difference.

Thank you for your very detailed explanation. I do not have enough knowledge at present to manage this myself and would absolutely want to hire an advisor but on an hourly rate basis rather than % ongoing fee.

u03ada8

handful said:

I was with SJP for part of my pension for a few years and was aware of their diminishing charges for 6 years but what I stupidly failed to realise was that it's 6 years from the date of every contribution, not just from when I transferred in. When I realised this I stopped contributions and waited for a couple of years and redirected my contributions into a SIPP. I also started to take much more of an interest in my pensions investment options with the help of many on this site and from a lot of research elsewhere I have now moved away entirely from SJP. My only regret (apart from choosing them to invest with in the first place) was to not move sooner.

Thank you for sharing your experience. I know I'm not the only one. I don't have a huge amount invested with them but my husband does. It's going to be a process...

Who is your SIPP held with now?

Albermarle

u03ada8 said:

morty85 said:

I am a Financial Planner for a large firm and there are a few main things you will want to consider.

As reiterated, first you need to understand what if any tranches of investments you've made have exit fees associated to them.

These exit fees have now been scrapped for new investments and new clients, but legacy contributions are likely to still be at the mercy of 6 year exit charges from date of deployment of funds. This can obviously affect what you're able to transfer out initially without losing value due to fees to move your money. You can obtain a statement from SJP on any exit fees liable on your plans.

There are a host of options available to you and a few things to consider.

- Do you have the confidence, time and level of understanding to self manage your own investments?

If so a DIY platform may be useful. Most also offer lower cost 'coaching' which doesn't constitute formal advice but is intended to help guide you on your decision making if you don't wish to pay for ongoing planning advice, this can include on how to construct a suitable portfolio of investments. Some will provide you the option to convert to full advice with other advisers being able to fully service this need within their firm (think Hargreaves Lansdown/ Bestinvest+Evelyn Partners, etc) if you feel you dont or no longer wish to self manage. This can reduce the need to move assets if a provider also offers this service 
If you feel it isn't right for yyou to DIY given the additional involvement required on your behalf, having your plans managed by a professional takes all the hassle off your hands and a co-working relationship should form, the adviser should be able to offer you the ability to make advised decisions(they can advise you on what they feel are the right investments for you and you have the final say) or discretionary decisions on your investments (they provide advice and manage them for you but keep you informed of what's being recommended and why).

- Do you feel like you need to pay for annual reviews?

Or, would you have enough trust in a new adviser (given your recent experience) to have your plans set up and adjusted so they are suitable for you now and a suitable risk managed plan established so you can let the professionals manage things for you without the need for regular reviews?

This means you only pay for an advice event as it arises rather than fees being drip fed out each year.

If you have complex planning needs and variable personal circumstances then regular reviews can help keep things on track for you and they can be adjusted and adapted as required to meet your needs.

- What is your tolerance on cost?

You will likely have to pay for new advice fees on how your post-SJP monies are managed.
A lot of time, research and expertise goes into formulating advice and this is a something that will result in new added costs. Some firms work on a fixed fee basis dependant on the amount of work involved (which I think is fairest on the client), others will charge a percentage fee based on the value of the funds to be managed (e.g. 2% advice fee)

- You should also consider the merits of using an IFA vs a restricted adviser.

Just because an IFA is technically whole of market doesn't necessarily mean you will get a better solution than a restricted adviser.
Each firm has different due diligence and research methods and different ways in viewing risk management and controls on how funds are invested.

Often an IFA (which I have also been) will build a portfolio of preferred product and investment providers that they typically use with clients (but they can also select whatever they believe is best based on individual client circumstances), this effectively creates a mini 'panel', essentially similar to how a restricted adviser would operate.
However a restricted adviser (which I am now) may only use a select group of products and providers due to their good financial credentials, cost effectiveness, quality of product and service, range of services and because its been determined they are the best available options for their clients and the firms have high conviction confidence using them.

- Transferring out and receiving advice will take time.

 The whole process can take a number of weeks or months as your new adviser/firm will need to gather information on your current plans on you as an individual, this will include issuing signed (by you) letters of authority giving your new firm the ability to obtain information on your existing plans, so your current SJP adviser is likely to be made aware of your intention to explore your options available to you by issuing these letters to SJP.

I hope this helps provide some useful information.

Essentially, do your research, meet with a few different advisers and use the above as a reference on finding the best solution for you.

Much of the DIY online providers will be very similar on cost and functionality so it's more to do with any buying and selling charges that may be incurred when managing your portfolio that will make the greatest difference.

Thank you for your very detailed explanation. I do not have enough knowledge at present to manage this myself and would absolutely want to hire an advisor but on an hourly rate basis rather than % ongoing fee.

The thing to keep in mind with financial advisors, is that they are highly regulated and legally liable, that all advice given to you is appropriate for you . So they will not proffer any advice without a very detailed analysis of you, your personality/risk profile,  objectives, family situation, tax and employment situation and everything has to be recorded ( probably in triplicate) . This can take many hours of work before you even get to the advice bit.

morty85

Albermarle said:

u03ada8 said:

morty85 said:

I am a Financial Planner for a large firm and there are a few main things you will want to consider.

As reiterated, first you need to understand what if any tranches of investments you've made have exit fees associated to them.

These exit fees have now been scrapped for new investments and new clients, but legacy contributions are likely to still be at the mercy of 6 year exit charges from date of deployment of funds. This can obviously affect what you're able to transfer out initially without losing value due to fees to move your money. You can obtain a statement from SJP on any exit fees liable on your plans.

There are a host of options available to you and a few things to consider.

- Do you have the confidence, time and level of understanding to self manage your own investments?

If so a DIY platform may be useful. Most also offer lower cost 'coaching' which doesn't constitute formal advice but is intended to help guide you on your decision making if you don't wish to pay for ongoing planning advice, this can include on how to construct a suitable portfolio of investments. Some will provide you the option to convert to full advice with other advisers being able to fully service this need within their firm (think Hargreaves Lansdown/ Bestinvest+Evelyn Partners, etc) if you feel you dont or no longer wish to self manage. This can reduce the need to move assets if a provider also offers this service 
If you feel it isn't right for yyou to DIY given the additional involvement required on your behalf, having your plans managed by a professional takes all the hassle off your hands and a co-working relationship should form, the adviser should be able to offer you the ability to make advised decisions(they can advise you on what they feel are the right investments for you and you have the final say) or discretionary decisions on your investments (they provide advice and manage them for you but keep you informed of what's being recommended and why).

- Do you feel like you need to pay for annual reviews?

Or, would you have enough trust in a new adviser (given your recent experience) to have your plans set up and adjusted so they are suitable for you now and a suitable risk managed plan established so you can let the professionals manage things for you without the need for regular reviews?

This means you only pay for an advice event as it arises rather than fees being drip fed out each year.

If you have complex planning needs and variable personal circumstances then regular reviews can help keep things on track for you and they can be adjusted and adapted as required to meet your needs.

- What is your tolerance on cost?

You will likely have to pay for new advice fees on how your post-SJP monies are managed.
A lot of time, research and expertise goes into formulating advice and this is a something that will result in new added costs. Some firms work on a fixed fee basis dependant on the amount of work involved (which I think is fairest on the client), others will charge a percentage fee based on the value of the funds to be managed (e.g. 2% advice fee)

- You should also consider the merits of using an IFA vs a restricted adviser.

Just because an IFA is technically whole of market doesn't necessarily mean you will get a better solution than a restricted adviser.
Each firm has different due diligence and research methods and different ways in viewing risk management and controls on how funds are invested.

Often an IFA (which I have also been) will build a portfolio of preferred product and investment providers that they typically use with clients (but they can also select whatever they believe is best based on individual client circumstances), this effectively creates a mini 'panel', essentially similar to how a restricted adviser would operate.
However a restricted adviser (which I am now) may only use a select group of products and providers due to their good financial credentials, cost effectiveness, quality of product and service, range of services and because its been determined they are the best available options for their clients and the firms have high conviction confidence using them.

- Transferring out and receiving advice will take time.

 The whole process can take a number of weeks or months as your new adviser/firm will need to gather information on your current plans on you as an individual, this will include issuing signed (by you) letters of authority giving your new firm the ability to obtain information on your existing plans, so your current SJP adviser is likely to be made aware of your intention to explore your options available to you by issuing these letters to SJP.

I hope this helps provide some useful information.

Essentially, do your research, meet with a few different advisers and use the above as a reference on finding the best solution for you.

Much of the DIY online providers will be very similar on cost and functionality so it's more to do with any buying and selling charges that may be incurred when managing your portfolio that will make the greatest difference.

Thank you for your very detailed explanation. I do not have enough knowledge at present to manage this myself and would absolutely want to hire an advisor but on an hourly rate basis rather than % ongoing fee.

The thing to keep in mind with financial advisors, is that they are highly regulated and legally liable, that all advice given to you is appropriate for you . So they will not proffer any advice without a very detailed analysis of you, your personality/risk profile,  objectives, family situation, tax and employment situation and everything has to be recorded ( probably in triplicate) . This can take many hours of work before you even get to the advice bit.

Absolutely.

Even weeks to complete due obtaining policy info/kyc info/aml requirements, etc.