Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
Also, the FCA 'expects firms to look at their past business and pay redress and where appropriate'. If SJP's past pension transfer business is deemed to be unsuitable it will be facing a hefty redress bill....
Surprised to see these up today - FCA has confirmed that it will be banning contingent charging on DB pension transfers from October 2020. SJP advisers are currently able to charge huge fees for pension transfer business and now they will have to charge upfront and justify these fees, or more likely reduce them. FCA decision on exit fees to come later this year. The tide is turning.
Not sure where the good news is Mao? Growth has slowed and has come in at less than forecast. Inflows into investments has dropped and inflows are just being held up by pension business, where we can expect gradual drops over next couple of years as regulatory pressures bite. Mifid II full disclosure of costs & fees due in January 2019.
I'm sure that the results will be fantastic, they always have been, given the favorable regulatory landscape that SJP are able to operate in. I don't think that the board have dealt with regulatory issues; rather they seem to be pointedly ignoring them, despite repeated questions around the sustainability of their current business model. Either the board really don't see the upcoming regulation as an issue (unlikely, they're not stupid), or they plan to make some major changes to the company's charging structure over the next year. While this would have a material impact on the company's future growth potential, SJP will still have �100bn under management so with lower charges & costs, would be able to survive in the long term, albeit with significantly lower profits, potential for growth, and number of employees.
That escalated quickly - I guess I'm not THAT sure about this - Do you see the situation in a different light? I'd be interested to hear your thoughts. SJP are a beast of a company, but isn't there a danger that increased regulation will have an effect on their margins?
Ha ha - Not an adviser but I get your point - Perhaps I've spent too much time reading CityWire forums! Maybe I'm wrong; SJP have been around for a long time and have certainly dealt with other issues with ease. It just seems like there's a lot against them at the moment. Time will tell!
Morning All, First time poster here so let me know if I do something wrong!! I know this company very well and have considered investing in the past. However, I believe that SJP has had its day in the sun and can't grow at its current rate for much longer. The FCA has made it very clear that it will be focusing on 'value for money', 'conflict of interest' and 'transparency', all things that SJP struggle with on many levels: FCA Asset Management Review - Regulator looking at charges for fund houses and if lower costs are passed on to clients (in SJP's case, they're not, by a long way!), first set of remedies due next month: http://citywire.co.uk/new-model-adviser/news/sjp-fund-charges-where-the-money-goes/a1040944 Concerns over vertically integrated firms - SJP is the epitome of vertical integration, and this is how it is able to achieve such vast profits. The firm was able to (somehow) get around Retail Distribution Review rules, but now the spotlight is very firmly on whether their model offers value for money to customers, rather than shareholders. FCA's interim report due this summer: http://citywire.co.uk/wealth-manager/news/fca-voices-suitability-concern-over-vertically-integrated-firms/a1008926 Contingent Charging: SJP's business model is based on charging a % of funds under management, first as an initial 5% charge on many products, then an ongoing cut. Apart from being very expensive, the FCA has voiced concerns over % charging for pensions, SJPs main earner. Changes to how SJP can charge on their sales would have an extremely negative effect on its salespeople (partners): http://citywire.co.uk/new-model-adviser/news/fca-weighs-ban-on-contingent-charging-for-db-transfers/a1104942 Apart from that you've got the cold call ban probably coming into force in June; the vast majority of SJP salesmen use cold calling to drum up business, a possible visit from HMRC re their 'army' of 'self-employed' salespeople (who possibly aren't even self-employed - Imagine the NI bill.....), AND probably another look at their exit charge or 'early withdrawal fee', which is basically completely against the rules.... A great deal of regulatory headwind at the moment, and not sure how much longer they can continue with their current model.... Thoughts?