Some of these later joined SJP while others set up on their own or as part of other advice firms.
Then, there has been the growth in the number of adviser academies over the past 10 years as firms look to address the shortage of financial planners in the UK.
This continues to be a priority issue for our industry but presents a great opportunity to bring new and diverse talent into the financial advice profession.
FTA: What was the first thing you changed in your business related to the RDR?
ACJ: Our advisers started their qualification journey early on in the RDR implementation process and there was a concerted effort to support all of our advisers to reach the necessary qualification levels ahead of the deadline.
This work started a number of years before RDR as you would expect.
FTA: SJP has received a bit of criticism when it comes to the fees it charges. What makes your fee structure RDR compliant?
ACJ: We are very comfortable with our approach to charging, which works well for clients investing for the medium to long-term and through a long-term trusted relationship with their adviser.
We maintain our belief that it is important that clients understand the charges they pay across the full value chain – not just for the advice but also the total charges they are incurring for investing with us.
Research has shown that SJP has competitive fees when compared to other fully advised wealth management services in the UK.
These comparisons are importantly done on a like-for-like basis rather than selecting certain parts of the value chain and comparing fund charges or platform charges against our total charges, which includes advice, administration, portfolio construction and investment management.
Ultimately, however, charges are only one side of the value for money equation. It is value for money that is most important for clients and we fervently believe in the value that advice provides to clients – both in financial terms and in non-financial terms, be it through an SJP partner or another adviser in the industry. We need to do more to promote and articulate the clear value that advice can offer.
FTA: How has RDR shaped the market around you, in terms of the types and sizes of firms you now compete with?
ACJ: Among the more noticeable themes we have seen in the marketplace is the growth of multi-adviser practices and firms building much more extensive back office operations through the addition of further support staff within their businesses.
The biggest impact though goes back to the earlier point about the number of advisers.
