St James Place customers

nickyjane147

I know there has been much discussion on SJP.  However, my 90 year old mum has been with them for years and likes and trusts her SJP advisor so would never change.  However, my question is this - could the current claimants against SJP actually force them under, should the amount of claims exceed their provision?  If SJP was to cease trading, what would happen to my mum's investments - are they safe?  I have no idea how the success / solvency of SJP affects the actual investments - I know that they use in-house investments, but I don't know whether they are safe should SJP fail?

Momanns

No. SJP ringfenced funds. They have been pretty generous with the responses/payouts under the process to try and maintain their customer base but the allocated pot was huge. No liquidity concerns and share price on the rise. Nothing to worry about at all

dunstonh

  However, my question is this - could the current claimants against SJP actually force them under, should the amount of claims exceed their provision? 

It won't force them under
a) SJP have more than enough to cover it. Estimated worst case liability is £426m.  They generate around £504m profit a year.    Last year, they lost 4.5m as they have put aside the money already and they cut the dividend.
b) SJP will recover the cost from the SJP agent firm (many of whom are in debt to SJP but that's a different story)


The issue is a little overcooked.
a) it only applies to sales made after 1st Jan 2013.   
b) "at least annually" only applied after 2018 and not immediately for insurance based products (a lot of SJP stuff is insurance based rather than UT/OEICs and doesn't fall under MiFIDII)
c) the majority of cases were being serviced.
d) SJP reps have of a way of brainwashing their clients.   So, even when their clients know they are expensive and don't perform well, they still stick with the agent.  Many wont complain once they realise their agent would be on the hook.

There is an argument to made that SJP knew this was coming and that is why they deferred their fee reductions as it gave them a bit longer to earn from that to offset the fee.

Alexland

Even if SJP didn't have enough money to cover the liability they are a publicly listed company with a valuable customer book to exploit (ahem, service) so there are several ways they could raise cash from investors or lenders.

nickyjane147

Thank you for your reassurance. I really didn't know much about this so you have helped set my mind at rest 

LHW99

And while SJP are expensive, and don't have the best funds, they are not crooks or scammers.

At your mum's age, if she is happy there is no need to worry her.

poppy10_2

LHW99 said:

And while SJP are expensive, and don't have the best funds, they are not crooks or scammers.

At your mum's age, if she is happy there is no need to worry her.

Their huge fees and the way they essentially brainwash their customers as other posters have pointed out, makes them a bit scammy in my eyes

ShonaBM

Has anyone tried to realise funds in a trust with an investment bond. As SJP investment bonds include a frozen property fund, I am now being told after nearly 6 months of trying to realise a percentage of the bond for two of the beneficiaries that as the property fund is frozen this is not possible. The incompetence of SJP and in this case Bridgegate Wealth management knows no bounds.  I am incandescent with rage with them all. They are only one small step away from being crooks. 

dunstonh

Has anyone tried to realise funds in a trust with an investment bond.

yes.

As SJP investment bonds include a frozen property fund, I am now being told after nearly 6 months of trying to realise a percentage of the bond for two of the beneficiaries that as the property fund is frozen this is not possible. 

Normally, with whole of market providers you can sell down the other funds to meet the surrender.

The incompetence of SJP and in this case Bridgegate Wealth management knows no bounds.  

What incompetence are you referring to?

Malthusian

If Shona is trying to sell a percentage of the bond that is less than the percentage of the bond occupied by the frozen property fund, and SJP can't do it because you're not supposed to withdraw money from SJP (the reason they recommend bonds that generate massive tax millstones in the first place), "incompetence" sounds like fair comment to me.

Diana_Mackintosh

I too am wishing to encash an investment bond with a part property fund. Under the Terms and Conditions of the Bond it states in 7.5 that SJP can delay withdrawal for up to 6 months. Therefore, am I correct that the maximum time to wait to get my money is 6 months or is there at something I’m missing?