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I thought the advertising is too generic…..and very millennial….you have to fear for the next generation when Dads have to be there for emotional support…
The adverts by claims management companies have started to appear for Quilter….
Once there are significant complaint numbers, the company cannot make offers before the Ombudman referral time kicks in….with a min £750 cost to the company for each case….and many more costs of investigation before there is any thought of compensation….The industry needs a solution to stop this spiralling out of hand for everyone.
The bigger problem may be how the company deals with the Partners many of whom bought books of business from other agents with expected cash flows and those may now be cut and reduce the value of the businesses they run. If SJP mishandle the partners there will be litigation galore and it could sink SJP as a business.
It seems like a one way bet at the moment….every day another 1-3% comes off the price.
This turd of a share a dog even by U.K. ftse 100 most hated basket case index in the world standards, heading for sub 2 quid a share in the next market sell off, their business model is being dismantled. Terminal, like U.K. plc in general. Net outflows every year since 2016 from U.K. market, enjoying brexit?
The problem in trying to work out what price to go back into the share is always the same one, don't try catching a falling knife. Its got to hit the floor first and right now its still in flight.
Think they should change the name to Rock and Hard... Been watching this but still have no confidence to buy any.. I am looking for some recovery stocks but this is heading towards another year low!!
Drd21 I am sure you are correct and the claims management companies are turning a blind eye to the vast opportunity presented by all the other financial services companies.
Little does it matter though, the problem for SJP is that they are haemorrhaging cash, it has drip fed the bad news to the markets leaving everyone guessing when they will gain some certainty.
The SP chart suggests no end in sight for the decline.
Until the remediation is scoped and the reputational effects on clients / partners / staff can be ascertained there can be no recovery….the only thing that is guaranteed is that it will overshoot on the downside…..only the brave/foolish will buy this year.
Bullsh*t CG. I can assure you it is as bad if not worse at other networks. Do you think your local IFA has robust records to demonstrate servicing has been taking place regularly? The reality is the vast majority of financial adviser, inside or outside SJP look after their clients well. They just don't have belt the and braces paper trail to prove if not that consumer duty demands it. Ultimately it is the clients with small pots of money who miss out as the advice gap grows further. If advisers can service fewer clients in the new consumer duty world the will be cutting those clients with smaller pots.
There may well be some contagion with other businesses but STJ thought itself the biggest and the best and it incentivised /rewarded the greediest.
The salesmen and supporting staff where I worked always wanted to copy the STJ schemes and compliance/HR had to stop them implementing the worst aspects.
There will be self-justified reasons to continue charging for ongoing advice when it was not received - the client did not respond, the client was told the fee etc.
Let’s be honest about ongoing advice - for most people unless there is a life event a three or even 5 year review is ok. And for most investments performance will vary around the average. Managed portfolios where the investment advisory firm can change investment funds within the overall aim of the client and contact with the client to check there is no major change is good enough for most clients and should carry minimal cost.
Dropped 1% not even 9am yet. This is worse than I thought.
I don’t think you’ll find the same issues at other financial firms. Ever since the regulations changed there has been a paranoia that something like this would happen, somehow SJP convinced themselves that they were special and just saying they were providing good service without a robust process would be enough.
The idea that they can get advisers to pay back fees is a non starter, firstly they withheld some of the fees and paid the advisers as contractors and secondly they regularly reviewed the compliance of advisers individually and were satisfied at the time of those reviews it will be hard to claim they got the reviews wrong without accepting they were negligent, that will bring even more problems out in the open.
I think even starting with a 3 might be too optimistic, i can see this dropping and not recovering until 2027/8. Its just toxic, what might help is if other financial companies start getting named and then its not just St J that's getting all the punishment.
Abandon ship!
The dead cat bounced but was not brought back to life.
This is now sinking gradually lower and I suspect Porsche is rightly predicting the SP starting with a 3.
This is only getting worse for the next 18m, with a recovery only starting in 2027.
Anyone continuing to hold hoping for a turnaround may be waiting a very long time. Rule number 1: Protect your capital.
This bag of shyte heading back under 4 quid, who knows, maybe this hopeless brexit government will offer incentives to force pension funds to invest their clients hard earned in SJP.
Any evidence?
I'm concerned about your numeracy skills and 15,000 equating to 10% of their clients.
The company is now consulting with staff on the size and number of redundancies, i have friends who work there. What an almighty mess.
Unfortunately this is untouchable at the moment. Even for the bottom feeders/contrarians.
Certainly on my radar, but the dust needs to settle first. The company is under scrutiny now, so would not be surprised if more things came to light.
I wonder if this has anything to do with the renewed death spiral, it would be interesting to know what investigations are open on SJP at the moment.
I suspect a 1-2% drop a day for the forseeable.
They have admitted they don’t have the evidence so even where the service has been provided there is nothing to stop a claim being paid out.
That is the risk here, if it is the tip of the iceberg then there is more pain ahead. I would imagine that every client will opportunistically ask for refunds and hope for the best.
The biggest problem is that this is what SJP are willing to admit to, it could be the tip of the iceberg. 15,000 is approximately 10% of customers and ongoing advice fees are at most 25% of charges. If there were a bigger proportion of customers or it turned out more than just the ongoing advice fees were problematic that £400mn+ figure they have admitted could balloon to several billion and still be a conservative estimate.
Sharp activity well covered in ST Bus Section 3/12.
Long term issues around charging for "advice"-some of which never really happened but still charged for.