🚩 Why I'm Skeptical of St. James's Place (SJP)—Despite My Colleagues' Loyalty

This post is for anyone with an ISA, wondering if they're getting what they pay for.

Okay, upfront disclosure: I've got a biased view here, but I'll do my best to keep it neutral.

Over the last 5 years, my investing approach has evolved significantly. I've moved away from higher-beta, speculative investments toward a more structured, low-fee approach designed to sustainably grow my asset base. During this transition, I've often tried—and admittedly struggled—to convince colleagues and friends to do the same. Many instead opted for the perceived convenience of investing through the wealth management firm, St. James's Place (SJP).

Naturally, this prompted me to take a deeper look at SJP and their practices and see if I was missing a trick and should be letting these high fliers manage my hard earned additional funds. But after review it quickly became clear to me that steering clear of them was a no-brainer—especially if you're comfortable managing investments yourself. Despite this, persuading my peers to move away from a managed broker has remained challenging, even though automated investing into low-cost index funds has never been easier or more accessible.

My primary frustration has always revolved around SJP's hefty onboarding charges. Paying substantial fees merely for the privilege of handing over your money raised immediate red flags for me, I am a Scotsman after all – notoriously tight!

It was interesting to see sporadic articles popping up between 2023 and 2024, major news outlets began scrutinizing SJP’s fee structure more closely. When the Financial Times & othersexposed the true extent of these predatory fees (see here), SJP’s share price took a dramatic hit—at one point plunging by nearly 60%.

This blog dives deeper into why these revelations matter and demonstrates how even seemingly modest fee differences dramatically impact your long-term returns.

📉 SJP vs Doing It Yourself: The £100k Reality Check

Let’s get straight to it.

If you'd invested £100,000 with St. James’s Place (SJP) back in 2020, paid their 4.5% onboarding fee, and held for 5 years using their typical fund lineup and fee model, your portfolio would now be worth:

• SJP (4.5% CAGR): £119,010

• SJP (5.0% CAGR): £121,885

Now compare that to the same £100k in a simple, low-cost passive ETF:

• S&P 500 (8.3% CAGR): £148,985

• Nasdaq 100 (11.5% CAGR): £172,335

That’s a £27k–£53k gap—and it has nothing to do with timing the market or chasing risky trades. It’s fees vs no fees. Drag vs compound.

And over time, that drag only gets heavier.

⏸️ Quick Timeout: What Is “Drag”?

Drag is what slows your portfolio down. It’s the difference between what the market gives… and what you actually keep.

It comes from:

• High fees

• Hidden costs

• Inefficient structures

• Unnecessary intermediaries

Say the market returns 8%, but your setup costs you 2% in fees and charges.That’s a 25% haircut—every single year.

Over time, that drag compounds against you. It erodes gains. It delays outcomes. It’s wealth leaking out of your future.

🧾 “Fee Reform” Doesn’t Mean Low Fees

In 2025, under pressure, SJP finally announced a revamp to their fee structure

• Initial advice fees will now be tiered (starting at 3% and reducing above £250k)

• Ongoing advice will move to a flat fee (0.8% per year)

• Exit penalties phased out for new clients from August 2025

But here’s what most people miss:Fund fees still apply. On top of the advice charge, SJP clients continue paying underlying fund and product fees (typically 0.27–0.34%), plus transaction costs (~0.3%).

So while unbundling makes things look cleaner, the true all-in cost remains well above 1.5%—far higher than DIY solutions, where you can track the S&P 500 for 0.07%.

📊 What Do SJP Clients Pay Today?

Following pressure from the FCA and media scrutiny, SJP announced a new fee structure set to roll out from August 26, 2025.

Here’s how it breaks down:

• Initial advice fee: Tiered — 3% on the first £250k, down to 1% over £500k (max cap of £30k).

• Ongoing advice: 0.8% annually.

• Product charge: ~0.27% (for ISAs/unit trusts).

• Average fund charge: ~0.52%.

👉 Total ongoing cost: ~1.67% per year, according to MoneyWeek and Boring Money.That’s not including the upfront advice fee, read more here.

Even after “reform,” the average client is still paying over 1.5% annually—compared to just 0.07% for a self-managed index tracker.

Layer on the drag, and over a 10+ year horizon, that fee gap doesn't just nibble—it bites.

✅ Why Now’s the Time to Take Control

If there’s ever been a time to reassess how your ISA is working for you—it’s right now.

The rise of clean, modern investing platforms like Vanguard, AJ Bell, Freetrade, and Trading212 has eliminated the need to hand over 1.5–2% annually just to feel “looked after.”

Personally, I use Fidelity. It’s simple, intuitive, and allows me to manage my entire setup—my own ISA, my kids’ Junior ISAs, and even view my spouse’s account—all in one place. No hassle, no hidden nonsense.

A solid, diversified portfolio built from low-cost index fundsinside a self-managed ISA can cost as little as 0.07% per year. That’s not a typo.

When you pair that kind of efficiency with the power of compounding, the long-term difference is staggering. Over 10, 15, or 20 years, those “small” fees snowball into massive drag.

You don’t need to pick winners. You just need to stop overpaying for underperformance.

Moving to a DIY ISA isn’t about being clever—it’s about removing friction. It puts you in control. You don’t have to beat the market to come out ahead. You just need to stop falling behind it.

🔚 Wrapping It Up

This post isn’t about adviser-bashing. It’s about arithmetic.

Most people aren’t taught how compounding works. Or how fees eat returns. Or that you can build long-term wealth without ever speaking to a broker.

The problem isn’t just high fees—it’s the complete lack of financial education around what those fees actually do to your outcomes.

That’s the gap this blog is trying to bridge.

Because the truth is, you don’t need a finance degree to take control. You just need:

• A low-cost ISA platform

• A few well-diversified index funds

• And some clarity on what you’re trying to build

Tools like Fidelity, Vanguard, or even simple tracking spreadsheets (which I’ll share in future posts) can turn confusion into action.

The good news? Once you understand it, you can’t unsee it and once you switch, you won’t go back. The next post will walk through the practical side—how to step away from platforms like SJP and phase into something cleaner, leaner, and built for you, not your adviser.

Remember, this isn't a monologue, it's a dialogue.

Let’s talk soon!

Matt, The Compound Coach