Latest news with #fees
Times
a day ago
- Business
- Times
SJP's delayed cut to investment fees will kick in next month
St James's Place will begin the long-awaited overhaul of its prices next month, bringing in cheaper fees for some customers. After criticism of its charging structure, the UK's largest wealth manager initially said it would reduce fees and make them more transparent in October 2023, then later told staff that it would implement the changes in May this year. But the plans were postponed after pushback from its advisers, who said that there wasn't enough time to adapt their systems. St James's Place (SJP) has now said that the changes will take effect from August 26 and apply to more than one million investors, who use the firm to manage their savings and pensions. SJP's fees have been under scrutiny for years amid claims that they were opaque and could be expensive. Last year the company set aside £426 million to refund clients who had paid for advice that they never received. The decision to overhaul the charging structure came after the City watchdog, the Financial Conduct Authority (FCA), brought in new consumer duty rules which demand 'good outcomes' for clients. • From threats to inviting us to tea: SJP changes its tune (and fees) SJP is changing its initial advice fee of 4.5 per cent to a tiered structure: the first £250,000 will cost 3 per cent, the next £250,000 will have a fee of 2 per cent and anything over £500,000 will be 1 per cent. For example, if you had £400,000 you would pay 3 per cent on the first £250,000 (£7,500) and 2 per cent on the next £150,000 (£3,000). You would pay a total of £10,500 for the initial advice, which works out at 2.63 per cent. The firm's ongoing advice fee of 0.5 per cent — which typically pays for a yearly review — is increasing to 0.8 per cent. This is roughly in line with the rest of the industry, but will make things more expensive for loyal customers who will not benefit from the reduced cost of initial advice. SJP customers will also pay an ongoing product charge for their investments. Bonds and pensions cost 0.35 per cent a year, decreasing gradually for larger sums down to 0.25 per cent for any money over £3 million. Isas and unit trusts cost 0.27 per cent, decreasing gradually to 0.17 per cent on amounts over £3 million. The charges for fund management have also been reviewed. The amount charged varies but SJP said it ranges from 0.09-0.69 per cent for 95 per cent of its funds. As part of the overhaul, SJP has split its charges into three components: the advice charge, the product charge and the fund charge. While this makes it easier for new customers to work out what they are paying for, it means that comparing the new fees to the old system is complicated. Part of the controversy around SJP's old fees was their lack of transparency. • St James's Place bullied and belittled me, but I was right all along SJP said that a very small group of customers may end up paying more due to the prices of certain funds increasing during the restructure. The company said that moving to the new charging structure had required an 'extensive IT infrastructure build'. James Rainbow, the chief executive of SJP Wealth Management, said: 'We see the real value in the relationship between our clients and their advisers every day. These changes will make it much simpler to see just how competitive we are on a like-for-like basis for the fully personalised, trusted advice our advisers provide. 'It's a good thing for our advisers, our business and most importantly our clients, the majority of which will benefit from lower overall charges over their relationship with us.'
South China Morning Post
2 days ago
- Automotive
- South China Morning Post
Will raising fees solve Hong Kong's metered car parking crunch?
Industry experts have urged Hong Kong transport authorities to look beyond raising fees to free up metered parking spaces, with the government planning to double the charges from HK$2 (25 US cents) per 15 minutes to HK$4. Authorities could consider several methods to make motorists vacate slots, including varying rates, limiting parking time by registering licence plates or even implementing congestion charges or electronic road pricing, experts said. The Transport and Logistics Bureau last week said that it was proposing to raise parking meter fees from HK$2 per 15 minutes to HK$4 to boost the turnover of vehicles using these spaces to address the short-term needs of drivers. If approved, the increase will be the first since 1994. The bureau noted that the composite consumer price index had risen by more than 70 per cent during the same 31-year period. 'As the existing parking meter fees are significantly lower than the usual parking fees, some motorists tend to go around in circles to look for or wait for a vacant metered parking space, potentially leading to traffic obstruction,' the bureau said. 'Motorists also have less incentive to pull out of metered parking spaces, thus lengthening the waiting time for other users.'
Globe and Mail
2 days ago
- Business
- Globe and Mail
JPM Mulls Over Monetizing Client Data: Will it Alter Fintech Business?
JPMorgan JPM has informed fintech firms that it will begin charging fees to access their clients' bank account details. This will likely amount to hundreds of millions of dollars in revenues for the company. This was reported by Bloomberg, citing people familiar with the matter. The bank has sent updated pricing sheets to data aggregators that facilitate the connection between banks and fintechs like PayPal Holdings Inc. 's PYPL Venmo, Coinbase Global Inc. COIN and Robinhood Markets, Inc. HOOD. The charges will differ based on how the data is used, with higher fees for payments-focused firms. The fees, which could be implemented later this year, depending on the outcome of a Biden-era regulation, are not yet final and could be negotiated. These charges would substantially reshape the business for fintech firms, including PayPal, Coinbase and Robinhood, which primarily rely on their access to customers' bank accounts and were able to access the same for free. The fees could be passed from data aggregators to fintech firms like PayPal, Coinbase and Robinhood, which would ultimately pass them on to consumers. Lower-income customers will be harmed by restricted access to these platforms, given higher fees. In some cases, JPMorgan's proposed fees would exceed the revenues certain companies earn from a single transaction by up to 10 times. JPMorgan is introducing data access fees to monetize client data, curb excessive third-party usage, and regain control amid regulatory uncertainty over open banking rules. 'We've had productive conversations and are working with the entire ecosystem to ensure we're all making the necessary investments in the infrastructure that keeps our customers safe,' a spokesperson for JPMorgan stated. JPMorgan's Price Performance, Valuation and Estimates JPMorgan shares have soared 19.7% this year, outperforming the S&P 500's gain of 5.9%. From a valuation standpoint, JPM trades at a 12-month trailing price-to-tangible book (P/TB) of 3.04X, above the industry average. The Zacks Consensus Estimate for JPMorgan's 2025 earnings implies a decline of 5.6% on a year-over-year basis, while 2026 earnings are expected to grow at a rate of 5.9%. In the past week, earnings estimates for 2025 and 2026 have been revised upward. JPM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include Stock #1: A Disruptive Force with Notable Growth and Resilience Stock #2: Bullish Signs Signaling to Buy the Dip Stock #3: One of the Most Compelling Investments in the Market Stock #4: Leader In a Red-Hot Industry Poised for Growth Stock #5: Modern Omni-Channel Platform Coiled to Spring Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%. Download Atomic Opportunity: Nuclear Energy's Comeback free today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Coinbase Global, Inc. (COIN): Free Stock Analysis Report Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report
Yahoo
2 days ago
- Business
- Yahoo
JPM Mulls Over Monetizing Client Data: Will it Alter Fintech Business?
JPMorgan JPM has informed fintech firms that it will begin charging fees to access their clients' bank account details. This will likely amount to hundreds of millions of dollars in revenues for the company. This was reported by Bloomberg, citing people familiar with the bank has sent updated pricing sheets to data aggregators that facilitate the connection between banks and fintechs like PayPal Holdings Inc.'s PYPL Venmo, Coinbase Global Inc. COIN and Robinhood Markets, Inc. HOOD. The charges will differ based on how the data is used, with higher fees for payments-focused firms. The fees, which could be implemented later this year, depending on the outcome of a Biden-era regulation, are not yet final and could be negotiated. These charges would substantially reshape the business for fintech firms, including PayPal, Coinbase and Robinhood, which primarily rely on their access to customers' bank accounts and were able to access the same for fees could be passed from data aggregators to fintech firms like PayPal, Coinbase and Robinhood, which would ultimately pass them on to consumers. Lower-income customers will be harmed by restricted access to these platforms, given higher some cases, JPMorgan's proposed fees would exceed the revenues certain companies earn from a single transaction by up to 10 times. JPMorgan is introducing data access fees to monetize client data, curb excessive third-party usage, and regain control amid regulatory uncertainty over open banking rules.'We've had productive conversations and are working with the entire ecosystem to ensure we're all making the necessary investments in the infrastructure that keeps our customers safe,' a spokesperson for JPMorgan stated. JPMorgan shares have soared 19.7% this year, outperforming the S&P 500's gain of 5.9%. Image Source: Zacks Investment Research From a valuation standpoint, JPM trades at a 12-month trailing price-to-tangible book (P/TB) of 3.04X, above the industry average. Image Source: Zacks Investment Research The Zacks Consensus Estimate for JPMorgan's 2025 earnings implies a decline of 5.6% on a year-over-year basis, while 2026 earnings are expected to grow at a rate of 5.9%. In the past week, earnings estimates for 2025 and 2026 have been revised upward. Image Source: Zacks Investment Research JPM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Coinbase Global, Inc. (COIN) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
3 days ago
- Business
- Reuters
JPMorgan plans to charge fintechs for customer data, Bloomberg News reports
July 11 (Reuters) - JPMorgan Chase (JPM.N), opens new tab is planning to impose fees on fintech companies for access to its customer bank account data, Bloomberg News reported on Friday, citing people familiar with the matter. The largest U.S. lender has sent pricing sheets to data aggregators - intermediaries that link banks with fintech platforms - outlining new charges that may vary by use case, with payment-focused firms facing higher costs, according to the report. "We've invested significant resources creating a valuable and secure system that protects customer data," a JPMorgan Chase spokesperson said. "We've had productive conversations and are working with the entire ecosystem to ensure we're all making the necessary investments in the infrastructure that keeps our customers safe." The move could disrupt the business model of payment apps, which rely on free access to customers' financial data to process transactions. Shares of PayPal (PYPL.O), opens new tab fell 6.3%, Block (XYZ.N), opens new tab was down 5.6%, while Visa (V.N), opens new tab and Mastercard (MA.N), opens new tab lost 2.82% and 2.9%, respectively. The new fees are expected to take effect later this year but are subject to negotiation, the Bloomberg News report said. U.S. banking giants are pushing for lighter regulations under President Donald Trump's administration battling Biden-era regulations over tougher capital requirements.
