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.