Yahoo Finance St James's Place cancels cruise for financial advisers weeks before it sets sail following storm over perks
Controversial overseas trips and cruises handed to financial advisers as rewards for attracting new business are to be scrapped by St James’s Place with immediate effect.
Last week Telegraph Money disclosed that the firm’s reward structure was under review. A cruise due to set sail for the Greek islands planned for this month and other trips scheduled for 2020 have now been scrapped, this newspaper can also reveal.
In a video to partners, as its self-employed advisers are known, the wealth manager’s chief executive, Andrew Croft, said he had decided to discontinue the trips, which are given in return for convincing customers to invest in pensions and Isas.
Partners who earn enough credits introducing new business are invited to exclusive trips where they can bring family members.
St James’s Place, Britain’s biggest wealth manager, has for years been criticised for its reward programmes with critics claim they incentivise advisers to recommend investment even when it is not in the best interests of clients.
“If we think this is the right thing to do for the long term, taking action now is also the right thing to do,” Mr Croft said in the video.
He said recent media reports had been “difficult reading” and the company had to “reflect” and “continue to modernise”.
A formal consultation is understood to be starting shortly, with the results to be announced at the firm’s annual meeting in January.
One partner told the Telegraph the cruises "did not sit well with clients" and that is "made complete sense for them to stop".
He added: "It's not the 1980s any more."
Pressure is also growing on the FTSE 100 firm to drop charges it takes from the savings of customers who leave within six years. Hargreaves Lansdown, the fund shop, scrapped its exit fees last week.
St James’s Place declined to comment.
sam.brodbeck@telegraph.co.uk
