From Morningstar:

An investment professional and activist shareholder, Philip Rose, has raised concerns about wealth management firm St James’s Place (SJP) and called for an investigation by the Treasury Select Committee (TSC) into its business practices and transparency. SJP faced scrutiny last year for overhauling its fee model and making provisions for client refunds. Rose’s investigation highlighted SJP’s use of deferred sales charges, which he believes may contravene FCA principles.

Rose alleges that SJP’s charging method masks the impact on investors, making it difficult for them to understand the costs involved. He believes SJP’s pension clients may have been misled due to the complex fee structure, potentially leading them to make decisions based on faulty information. Rose has submitted a detailed report on SJP to regulatory bodies to address these concerns.

Despite changes to its pricing for new clients, SJP’s existing pension clients are still subject to the controversial deferred sales charges. This has contributed to a significant drop in SJP’s share price over the past year. While the company reported a pre-tax loss for 2023, its total funds under management have increased. SJP’s dividend has been reduced in light of these financial challenges.

Rose’s investigation into SJP’s practices reveals a potential disconnect between the company’s fees and the understanding of its clients. By highlighting these issues, he aims to ensure that SJP remains accountable and transparent in its dealings with investors. The outcome of the investigation could have implications for SJP’s future business practices and regulatory compliance.



Read more at Morningstar: Activist SJP Investor Pushes For Parliamentary…