How will SJP’s overhaul impact value assessments?


The SJP agreement to overhaul its charging structure (from late 2025) is one of those epoch making decisions that will change the business model of the wealth management industry as surely as the RDR and the workplace pension charge caps. It does not take primary legislation to change things. The DB transfer market has been changed by the abolition of Conditional Charging and now the integrated advice model is being reworked by the Consumer Duty.


In order to balance the books, SJP will need to find cost savings from somewhere. Initial suggestions are that SJP will move towards passive portfolios with less ambition but lower costs. Commentators from Warren Buffet to Robin Powell will welcome the use of index funds but this will be at the expense of active managers, many of whom rely on the patronage of SJP.

Will this feed through to better value for savers? That depends on your view of SJP’s capacity to deliver value through fund selection and the management of mandates.

We will watch future SJP Value Assessments with interest.

About henry tapper

Founder of the Pension PlayPen,, partner of Stella, father of Olly . I am the Pension Plowman
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