St James’s Place (SJP) CEO Mark FitzPatrick faced scrutiny from analysts on July 29th regarding adviser retention during an investor half-year results call. The discussion repeatedly returned to the competitiveness of fees paid to advisers, especially after SJP's share price dropped 10% in mid-July due to news of partner firm exits like Wellesley Investment Management.
Despite recent high-profile departures of practice firms such as Prospera Wealth Management and Wellesley Investment Management (which together oversaw over £2 billion in client assets and joined rival Söderberg & Partners), SJP's adviser numbers actually saw a slight increase, rising by 17 to a total of 4,951. FitzPatrick expressed intrigue at the focus on adviser retention, stating that SJP has a partner retention level of about 90%, with hundreds leaving annually due to retirement, leaving the profession, or moving to competitors, while also recruiting new advisers.
The departures coincide with a period of significant change for SJP, including a new fee model rolled out in August 2025 and ongoing cost-cutting measures. Net flows into SJP were down 28.4% across the first half of the year, totaling £2.7 billion, compared to £3.8 billion in the same period last year. This decline is partly attributed to the new charging structure, particularly impacting pension product flows, which fell 37%. However, assets under management (AUM) increased by 9.4% to £240.8 billion, boosted by strong investment performance. Adjusted profit before tax was down 9% to £278.4 million due to lower margins from the new charging structure.
The new fee structure, which moved to monthly advice fees for partners, has been cited by analysts, including RBC Europe, as a potential factor in adviser retention issues. They noted that the charge changes could create "extra friction for advisers at the point of sale." While BNP Paribas analysts described the developments as "unhelpful," they also clarified that a departing firm like Sovereign Wealth (which has about £3 billion in assets under administration and is reportedly in talks with Söderberg) would not immediately mean all client assets are lost, as SJP's restricted advice model makes client portfolio transfers complex and subject to regulatory scrutiny. FitzPatrick emphasized that SJP still has the largest number of advisers and a high concentration of chartered financial planners, making them a target for competitors.
