Unnamed funder backs group claim against St James’s Place over alleged seizure of adviser businesses

Robertson Pugh Associates has secured litigation funding for a proposed group action against St James’s Place (SJP), the UK wealth management group, on behalf of former financial advisers who allege that the company transferred their client portfolios to other advisers without paying fair compensation.

The identity of the specialist litigation funder has not been disclosed. According to Professional Adviser, the law firm entered into a relationship agreement with the funder in July to facilitate financing for the proposed proceedings. The amount of funding and the potential value of the claims have not been disclosed.

SJP operates through a network of appointed representatives (ARs) who advise clients on its financial products. The proposed action concerns advisers whose contracts were suspended or terminated, as well as those who voluntarily left the network, and who allege that SJP subsequently transferred their clients and associated revenue streams to other advisers without adequate compensation.

According to the claim registration website, hundreds of ARs have had their contracts suspended or terminated in recent years. The proposed claimant group includes advisers who lost all or part of their practices following compliance investigations, findings that they were not fit and proper, or attempts to leave SJP voluntarily.

Elizabeth Robertson, co-founder of Robertson Pugh Associates, said the firm intends to recover the value of businesses that former advisers spent years building before allegedly losing them without fair compensation.

The law firm began recruiting potential claimants in May and is continuing to encourage affected advisers to register their interest. The proposed action is also open to current ARs who believe they have lost part of their practices.

SJP disputes the allegations and maintains that it has received no direct engagement concerning the proposed claim, which it has described as speculative. The company said it seeks to maintain high standards of conduct and compliance and resolves disputes in accordance with its contractual arrangements. It has pledged to vigorously defend its position against any proceedings.

The litigation remains at the pre-action stage, with no formal claim filed as of the latest reports.