SJP exit fee scrap ‘first high profile case of consumer duty starting to bite’

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Last week, St James’s Place announced it was scrapping exit fees for the vast majority of new investment bonds and pensions as part of an overhaul of its charging structure.

The firm said there would be a revised charging structure for new investment bonds and pensions which will operate with an initial charge and ongoing charges but without any early withdrawal charges.

In addition, charges across all its wrappers, which have historically been disclosed primarily on an all-inclusive basis, will be separated into component parts.

It’s no surprise that the FTSE 100 has often been scrutinised for its fees so this was largely welcomed by the industry but had many questioning why now?

FTAdviser deputy news editor Sonia Rach talks to Alison Gay, senior public affairs consultant at the Lang Cat and Matthew Connell, director of policy and public affairs at the Chartered Insurance Institute on the impact of the consumer duty on fees and other areas in the industry.

The FTAdviser Podcast is the podcast for financial advisers, brought to you by FTAdviser. Each week, FTAdviser is joined by guests from the industry to discuss the week in news and pressing industry issues.

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