SJP is in the eye of the storm and facing what feels like an unprecedented challenge to its business model.
The firm is to review adviser incentives after cruise and cufflinks criticisms reports Money Marketing.
It may have been acceptable in the 80s but not now. However, I suggest the biggest headache will come from the Sunday Times, where a great deal of award-winning journalism (inevitably) is being done to suggest that SJP is charging too much and has exit penalties that are too high.
From this week’s revelations, it feels as if the company might just be about to grasp the nettle. Among other admissions, it suggests that simply building relations with decent journalists will not be enough to manage the story. One would hope so too.
Very interesting to hear a senior director suggest that at least some senior figures at the FCA are concerned. That means there must have been debate high up at FCA towers. It would be great to see those minutes! For now we have all sorts of news about internal calls and meetings at SJP. How on earth did the ST obtain this information?
Here is the link to the main story though this is behind the Times' paywall. I know the money editor James Coney is a very strong defender of the need to pay for quality journalism. But I think it has rather limited the impact. This story has been running for years. It has probably broken out now.
The next big questions must be whether SJP will finally start to lose business and will other restricted models similar to SJP and will wider adviser charges come under scrutiny?
In other news, the Government has announced that it is going to review the loan charge with former auditor general Amyas Morse charged with examining the issue.
However, as Accountancy Age reports, the controversial system remains in force for now.
Johnson Financial is about to complete a management buy-out reports Professional Adviser.
Jargon Free Benefits Steve Bee argues that the state pension is in danger of becoming worthless if the age keeps increasing. With suggestions it should move to 75, he may have a point. There is certainly going to be a crisis concerning manual workers especially those who cannot adapt to easier work later in life.
