By Steve Conley, Academy of Life Planning
The latest revelations in FT adviser about St. James’s Place (SJP) practice valuations bring into sharp focus the vulnerability of advisers operating under vertically integrated models. The reported 45% drop in practice values within SJP’s internal Business Sale and Purchase (BSP) scheme mirrors what happened at AMP in Australia just a few years ago—and offers vital lessons for those now facing similar turmoil.
What’s Happening Now at SJP?
SJP advisers, many carrying six-figure debts, are now learning that the value of their practice—once calculated as 7.5 times annual fee income—is being revised down to just 4.5 times. Goodwill premiums are being removed entirely.
While SJP claims that external sales are possible, the practical barriers are significant. Buyers must be authorised by SJP to act as appointed representatives, and the lender (often SJP itself or its connected banks) controls the terms of the deal. With SJP partners owing over £800 million in practice acquisition loans, and repayment rates set at 3.75% over base (currently totalling 8.5%), the maths for exit is not in the adviser’s favour.
Lessons from the AMP Fallout
Five years ago, AMP in Australia faced similar scrutiny. Following the 2018 Hayne Royal Commission into misconduct in the financial services industry, AMP’s reliance on vertical integration and conflicted advice models was exposed. What followed was a collapse in adviser numbers, mass exits from the network, and a 50% drop in practice valuations.
AMP advisers discovered, much like those at SJP today, that they were not truly independent business owners. AMP controlled the client relationship, the product shelf, the fee structure—and ultimately the sale value. Many advisers were left with negative equity, unable to sell their businesses or service their debts.
Compare and Contrast
| Factor | SJP (UK) 2025 | AMP (Australia) 2020 |
|---|---|---|
| Business Valuation Drop | ~45% decline reported | ~50% decline post-Hayne reforms |
| Debt Levels | £805mn owed by advisers | $1bn+ in structured loans to AMPFPs |
| Buyer Limitations | Must be SJP-approved ARs | AMP-controlled approval process |
| Fee-for-No-Service Reviews | Underway, with redress risk | Triggered Royal Commission revelations |
| Exit Constraints | Loans must be repaid before exit | Same – tied to internal loan covenants |
| Regulatory Oversight | FCA reforms evolving | ASIC crackdown post-Royal Commission |
What Does This Mean for UK Advisers?
The parallels between SJP and AMP should serve as a wake-up call. Both models relied heavily on “tied” distribution, where advisers appeared self-employed but were effectively agents for the parent firm. When regulatory scrutiny, market pressure, or internal policy changes shift the economics, the illusion of business ownership quickly unravels.
For many, this is not just about valuations—it’s about personal financial survival, mental health, and the ability to retire with dignity.
A Fork in the Road: Continue or Transform?
Just as thousands of Australian advisers walked away from the AMP model and re-emerged as independent, values-driven planners, UK advisers now have a similar opportunity.
At the Academy of Life Planning, we support advisers in making this transition—from “authorised representative” to authentic business owner, from “product distributor” to holistic wealth planner.
You don’t have to wait for the value of your practice to fall further. You can proactively chart a new course, unshackled from restrictive covenants, with a model built around personal autonomy, client well-being, and long-term sustainability.
Your Next Step
If your practice is worth less than you owe, or your future feels like it’s being dictated by others, let’s talk.
We’ve helped dozens of advisers exit similar models with integrity and success. We’re building a new model—one that prioritises people over product, and purpose over profit.
Take back control. Reclaim your independence. Join the movement.
Q&A: Understanding the SJP Practice Valuation Crisis – Lessons from AMP
Q1: What’s happened to the value of SJP practices?
A: The valuation of practices within St. James’s Place has reportedly dropped by up to 45%. Advisers previously expected 7.5x their annual fee income (including a goodwill premium), but they’re now being offered just 4.5x—with goodwill often excluded altogether.
Q2: Why has this drop occurred?
A: SJP has adjusted its internal multiple calculations, possibly reflecting changing market conditions, fee-for-no-service risks, or tighter control over succession planning. Additionally, SJP’s lending practices—where most buyers rely on loans from or guaranteed by SJP—effectively allow the firm to influence market prices.
Q3: Can SJP advisers sell their businesses outside the SJP network?
A: Technically, yes. Practically, no. Any external buyer would need to be approved by SJP as an appointed representative, and the transition could leave clients “orphaned” without a regulated adviser, deterring outside interest and making external sales virtually unworkable.
Q4: How does this compare to what happened at AMP in Australia?
A: AMP faced a similar crisis following the 2018 Royal Commission. Adviser numbers halved, practice valuations collapsed by up to 50%, and the vertically integrated model was exposed as being heavily skewed in favour of the parent institution. Many advisers were left in negative equity.
Q5: Why are advisers in debt to SJP?
A: Many have borrowed to buy client books as part of SJP’s internal Business Sale and Purchase scheme. These loans—totalling over £800 million—carry high interest (currently 8.5% annually) and require steep repayments, often exceeding what the business is now worth.
Q6: What are the risks going forward?
A: Risks include fee clawbacks from the ongoing fee-for-no-service review, HMRC scrutiny over IR35 employment status, legal challenges over initial advice fees, and further erosion of fee income—all of which could turn adviser practices into financial liabilities.
Q7: What are the options for advisers trapped in this model?
A: Many feel stuck because they can’t repay their loans without first selling their business—but they can’t sell their business without repaying the loans. However, an alternative is transitioning into a holistic wealth planning model outside the FCA’s remit, where they can serve clients ethically and independently.
Q8: Isn’t it risky to leave a big network like SJP?
A: There’s always risk in change—but there’s also risk in staying. SJP advisers are currently exposed to high debt, falling valuations, limited autonomy, and potential regulatory fallout. Rebuilding independently can offer lower overheads, client loyalty, and peace of mind—especially with the right support.
Q9: How can the Academy of Life Planning help?
A: We provide a structured, supportive path for advisers to exit vertically integrated models and build their own values-led businesses. From training and accreditation to mentorship and community, we guide advisers through each step of the transition.
Q10: What’s the first step for someone considering a transition?
A: Reach out for a confidential conversation. We’ll explore your options, assess your situation, and help you plan your next move—whether now or in the future.
The AMP Collapse: A Cautionary Tale from Down Under
Australia’s largest wealth manager, AMP Limited, once seen as a pillar of the financial services industry, became a symbol of systemic failure after the 2018 Hayne Royal Commission exposed widespread misconduct. AMP’s vertically integrated model—wherein advisers sold in-house financial products—was found to prioritise sales over client interests, leading to:
- “Fee for no service” scandals (charging ongoing fees without delivering advice),
- Manipulation of client consent,
- Advisor disempowerment, locked into AMP’s sales culture,
- And ultimately, a collapse in public trust.
The consequences were swift and severe:
- Over half of AMP’s adviser network left,
- Practice valuations plunged by 40–50%, often below debt levels,
- The business model, dependent on cross-subsidised in-house products, collapsed under regulatory scrutiny,
- Many advisers faced mental health crises and financial ruin.
Year 2020 Down Under: Connecting to the Academy of Life Planning Blog Series
1. Contemporary Financial Planning Is About a Lot More Than Recommending Financial Products
Reflects the core problem at AMP: advisers were incentivised to recommend products, not provide holistic advice. AMP’s model failed to respect financial planning as a life-centric profession, not a sales channel.
2. Building the Wall Between Advice and Product
Australia’s reforms after AMP reinforced this exact wall—separating advice from distribution—through regulatory mandates and a push for independent, product-neutral advice.
3. Fee-for-Service Advisers Are More Trusted
Australia moved rapidly toward fee-for-service models post-Hayne. AMP’s reliance on conflicted remuneration crumbled, while independent planners thrived, gaining consumer trust and regulatory favour.
4. Most IFAs Are Fee-for-No-Service
This article echoes the heart of AMP’s scandal. The Royal Commission revealed AMP charged thousands of clients for services never delivered, triggering massive compensation claims and class actions.
5. Changing from Directly Authorised to Appointed Representative
AMP’s advisers often had little autonomy, despite appearing as self-employed. Much like the appointed representative model in the UK, they were bound by central control, with limited freedom to act in clients’ best interests.
6. What Happened Down Under?
A detailed early warning to UK advisers: the AMP crisis wasn’t isolated—it was systemic. And unless the UK reformed its vertically integrated giants, the same reckoning would come. Today’s issues at SJP echo this almost verbatim.
Key Lessons for the UK
- Product bias breaks trust: Advisers tied to one product suite cannot act independently.
- Fee-for-no-service will be exposed: Regulators are increasingly unforgiving.
- High-debt acquisition models collapse: When valuations fall, advisers end up in negative equity.
- Vertical integration is brittle: What props up centralised revenue today becomes tomorrow’s liability.
✅ Takeaway for Advisers
Just as many AMP advisers transitioned to independent, holistic models post-crisis, SJP advisers today may need to consider new paths. The Academy of Life Planning offers a proactive alternative, built on transparency, independence, and long-term sustainability.
Your Money or Your Life
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By Steve Conley. Available on Amazon. Visit www.steve.conley.co.uk to find out more.
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