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SJP Exit Fees: The August Deadline That Could Cost Customers Thousands

Tuesday August 12, 2025

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Old Charges, Long Grace Period

St. James’s Place (SJP) continues to sell investment products with 6% exit fees until 26 August 2025. This is the date when the Financial Conduct Authority’s Consumer Duty rules will finally ban them.

In October 2023, SJP admitted these charges did not meet Consumer Duty’s fair value standards. Yet the FCA gave the firm an 11-month grace period to keep selling them, along with early withdrawal penalties lasting up to six years.

Three Major Concerns

1. Adviser Incentives

SJP advisers can currently earn up to 4.5% initial commission on these older products. This rate will fall to 3% under the new rules. The higher commission creates a strong incentive to recommend the old structure until the last possible moment.

2. Rolling Exit Fees

Every time a client tops up their investment, the 6% penalty clock resets. This means a single portfolio can carry multiple overlapping six-year penalty periods, locking customers in for longer than they might expect.

3. Consumer Duty Contradiction

SJP has already acknowledged these charges break Consumer Duty principles. Continuing to apply them undermines both customer trust and the regulator’s intent.

Criticism from Campaigners

Consumer rights advocates have called the situation “scandalous”. They argue the FCA should have stopped the sale of these products immediately once SJP admitted they were non-compliant.

SJP says it gives customers side-by-side product illustrations and has trained advisers on both charging structures. Critics respond that this does not change the fact that harmful fees remain in place until August 2025.

The Bigger Regulatory Question

This case raises a crucial issue: when new rules expose harmful practices, should firms get extended transition periods? Or should they make the change straight away to protect customers from further losses?

What This Means for SJP Clients

If you have recently bought, or topped up, an SJP product, you could face years of exit penalties. You may also have been mis-sold or charged unfairly.

At Pacific Legal, we help SJP clients reclaim ongoing advice fees and challenge unfair charging structures. We operate on a no-win, no-fee basis and provide expert legal support backed by Levy & McRae Solicitors LLP.

Check if You Can Claim

  • Contact us for a free review of your investments.

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