The UK firm is under pressure from regulators to overhaul its fee structure to comply with new rules brought in by the Financial Conduct Authority. SJP, run by CEO Andrew Croft, has been facing intense scrutiny due to its complex fee structure and stiff penalties for clients who look to withdraw their cash. SJP also currently charges clients a 4.5% upfront fee covering advice for new Individual Savings Account customers, nearly double rivals’ level.
To get ahead of any regulatory clampdown, SJP has already begun cutting. In July, it trimmed the fee it charges bond and pension customers by 15 basis points. That’s unlikely to satisfy the FCA. But if it also scraps other charges like exit fees, its valuation could slump further. After Friday’s fall, SJP trades on under 8 times expected earnings for 2023, a tangible discount to peers like Schroders (SDR.L). Its more acute problems are likely to make this gap worse. (By Aimee Donnellan)
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