View more on these topics

SJP forced to change guidance on solicitor referrals

St James’s Place has been forced to issue new guidance to its partner firms after the Solicitors Regulation Authority confirmed that referrals by solicitors for investment advice can only be made to IFAs.

SJP has advised its firms that solicitors can only refer clients to independent advisers for investment advice, however it states that referrals for non-investment advice can still be made.

Last month the SRA released clarification of its rules on advice referrals from solicitors for investment advice, which excludes all tied and multi-tied advisers from receiving referrals.

The clarification follows heavy pressure from Sifa which says it had anecdotal evidence of SJP advisers, in particular, pushing for referral business from solicitors.

The guidance, seen by Money Marketing, says: “The guidance from the SRA states that where the client or solicitor determines that the client requires ‘investment advice’ the solicitor can only refer to an independent intermediary. The SRA view this as an adviser who can advise on products from across the whole of the market and offers the client the option of paying fees.”

But the guidance goes on to state that solicitors can continue to refer clients to SJP partners for a “wide range of advice” including advice on inheritance tax planning, trusts, business succession planning, long term care, protection, general insurance or mortgages.

An SJP spokeswoman says: “Our guidance remains in line with the rules regarding solicitors’ introductions, but we have updated it to take account of the further guidance issued recently by the SRA.”

In March 2007 the representative body for solicitor IFAs Sifa wrote to the SRA warning that St James’s Place may have been persuading solicitors to break Law Society rules and refer business to its multi-tied agents.

Sifa said there was widespread anecdotal evidence that SJP was promoting itself as being eligible to receive referrals from solicitors. SJP denied the allegations.

Recommended

RBS drags FTSE 100 lower

The FTSE 100 has lost almost 1 per cent in early trades after RBS published its half-year results

7IM attracts over £1bn AUM

Seven Investment Management has exceeded £1bn of assets under management in its multi manager and multi asset class funds.

Life begins at…

By Fiona Holmes, proposition communications manager Having reached a certain age (it’s the new 40 by the way), I’m having to come to terms with the fact that my peers and I aren’t as immune from illness or death as we’d like to think. That’s the problem with 30 being the new 20 and 40 […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com