St. James’s Place plc (SJP) is set to implement new charging structures for the majority of their investment bonds and pensions by the latter half of 2025.

The British investment management company, following an in-depth internal review, has revealed modifications to their charging platforms, ensuring long-term competitiveness, simplicity, and value-centric offerings for their clientele.

The modifications, primarily focused on new investment bonds and pensions, will initiate with upfront charges and continuous charges from the beginning. This strategy notably sidesteps early withdrawal charges (EWC) and gestation periods, paralleling their established protocol for unit trust and ISA ventures. An added layer of transparency is the breakdown of fees, previously presented on an all-encompassing basis. Moving forward, these will be fragmented into sections including initial and ongoing advice, investment management, and product administration – with a special focus on tiering for substantial investments.

This new paradigm is designed to resonate with an external landscape that’s progressively inclined towards straightforward comparability of services. In essence, clients stand to gain from increased clarity, comparability, and amplified value due to the forthcoming modifications. SJP’s commitment to this overhaul aligns seamlessly with Consumer Duty’s anticipations, solidifying the firm’s conviction that these adjustments will be favorable for clients.

Maintaining their competitiveness, St. James’s Place has reassured that their revised fees will remain in line, if not superior, to rival rates in the market, reflecting the premium service they, in tandem with their partners, offer.

However, for shareholders, these revisions, coupled with their associated deployment costs, will influence future Cash results. Initial years post-implementation might witness a dip in the Underlying Cash outcomes. This trend, though, is expected to make a turnaround, with growth gaining momentum in the medium to long term, synchronized with the escalation of total Group assets under management.

Andrew Croft, the company’s Chief Executive Officer, remarked: “The changes announced today are about positioning our business for continued success by putting in place a future charging structure that reflects the evolution of consumer engagement with retail financial services… I am confident that SJP’s ability to both deliver and demonstrate value in the future… is good for clients and represents an exciting opportunity for SJP.”

  Andrew Croft, St. James’s Place, United Kingdom