St. James Place ADVICE CHARGES

tombaba

While I am very aware that SJP is not a good investment I, unfortunately, signed up with them in 2007. Some 18.5 years later my "Investment Bond" has yielded a poor 2.75% compounded interest. Having complained to SJP that I've never wanted nor received ANY ADVICE I requested that the ADVICE FEES/CHARGES be refunded in full. SJP advised me that "there were never any advice charges applied in the first place". I now have noticed that there is an ongoing 0.80% ADVICE CHARGE under their "new" system (Total Ongoing Charges 1.76%) where this was hidden before as part of a 2.07% Total Ongoing Charges. I feel robbed! The accumulated £3,084.45 ADVICE CHARGES (compounded at 0.80%) over 18.5 years is a large chunk of the small "profit". How best to try to get them to repay this please? Thanks.

eskbanker

tombaba said:

Having complained to SJP that I've never wanted nor received ANY ADVICE I requested that the ADVICE FEES/CHARGES be refunded in full. SJP advised me that "there were never any advice charges applied in the first place".

What documentation do you have that backs up your view about what you signed up for?  Likewise, what do you have that supports your position about what you were charged for?

tombaba

Hi eskbanker. It was an old 2007 document and I do not recall any mention of "ongoing advice" or charges. There has never been any mention of Advice Charges (or any charges) on the Annual Wealth Management Review forms or any other forms. I requested, some years ago, that I am refunded ADVICE CHARGES and was told that this would happen only for SJP to then say that there were no Advice Charges. I'm trying to cash-in some of the Bonds and was told by 2 different SJP on the phone that I was in fact paying 0.50% and 0.80% Advice and that it has always been there in Bond encashment to cover the charges. Never shown on any documents 'though. All very strange but they were both adamant I was paying for advice. Now I see that it is 1.76% ongoing charges (0.80% Advice) that applies (electronic letter 47 pages long, just received). Thanks.

eskbanker

Regardless of what you were told verbally, if you don't have any evidence of advice being charged in the past then you'll struggle to get anything refunded.

However, if you're unhappy with what you're now being charged then challenge them and ascertain what options you have, and vote with your feet if necessary (after first checking if any exit charges apply).

If there are bond encashment charges then these will be a separate entity from ongoing annual advice charges, so you'd need to clarify those with them.

tombaba

Thanks eskbanker. I'll see how easy and quickly I can get my partial encashment done (they've not replied yet) then I'll email their Complaints Team for clarity/ cancellation of old/new 0.80% Advice Charges. Thanks for your help. Hope it helps other SJP customers as well (They should check their new letters...the 47 page one). Regards. Tom

dunstonh

Some 18.5 years later my "Investment Bond" has yielded a poor 2.75% compounded interest.

If you invested in funds that were interest paying 18.5 years ago then you would expect a low return.  Most of that period saw interest rates around 0.5%.

Having complained to SJP that I've never wanted nor received ANY ADVICE I requested that the ADVICE FEES/CHARGES be refunded in full. SJP advised me that "there were never any advice charges applied in the first place". 

They are probably correct.   18.5 years ago is pre-RDR.   SJP didn't pay adviser charges back then.  They paid commission.

How best to try to get them to repay this please? 

You don't.  You agreed to them in the first place.   

It was an old 2007 document and I do not recall any mention of "ongoing advice" or charges.

Ongoing advice charges didnt exist on pre-RDR products.   So, you wouldnt se any mention of ongoing advice.    However, all illustrations since the 90s have shown charges and reduction in yield due to charges.

. I requested, some years ago, that I am refunded ADVICE CHARGES and was told that this would happen only for SJP to then say that there were no Advice Charges.

Correct.  You would not expect ongoing advice charges on a pre-RDR product.

January 1, 2013, marked the end of the commission on new business and the commencement of the fee basis. You bought a product pre Jan 2013 that was commission based.  They had no obligation to provide an ongoing service. 

Only if the pre-RDR contract had commission turned off and an ongoing fee put in its place and a contract with SJP to provide ongoing services, which they failed to deliver, are you due a refund.