Adviser hits out at Towry transfer delays
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A former Edward Jones adviser has hit out at Towry for taking over three months to transfer client assets to a platform.
Source: Michael Walter/Troika
The adviser, who does not want to be named, says he did not join Towry when it acquired Edward Jones in October 2009 and a number of his clients requested to follow him to his new firm.
A number of platforms have also raised concerns to Money Marketing regarding the time taken to transfer assets.
The adviser says one client applied for her £1m portfolio to be transferred to Transact on March 2, but the transfer is still not complete.
The adviser says: “People are unable to get their money out and it is costing them dearly. One client tried to sell shares in BP a couple of months ago but because the transfer request had been placed, Towry Law said it could not access the funds. But we are still waiting for that transfer to complete months later and the client has lost money as a result.
“The whole transfer process from start to finish should take no more than two weeks. Towry Law is seriously inconveniencing EJ advisers who left and the clients that want to stay with them.”
The adviser says he has a large number of clients who applied to have their assets transferred to Transact in April, but many are still waiting for their funds.
Towry chief executive Andrew Fisher (pictured) admits there is a delay in in-specie transfers.
He says: “The cause of the delays is that the transfer process was being handled in the US until the end of April and a backlog built up. We are doing everything we can to reduce that backlog and it should be finished in the next month.”
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Readers' comments (14)
Exasperated me | 16 Jun 2010 9:20 am
Why would the fact that the process was being handled in the US affect the efficacy of the service? I could accept Mr Fisher's claims if we still relied upon pony express and the telegraph wire but in today's market we should see no difference no matter how far away the deals are done. Come on FSA take a look at this.
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Anonymous | 16 Jun 2010 9:47 am
Message to the FSA....
This is not treating customers fairly! What are you going to do about it?
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Anonymous | 16 Jun 2010 10:36 am
Towry Investment Management Ltd has a contract with clients to transfer ISA's within a 30 day period from Towry knowing a transfer request has been made. How Towry can say the already delayed transfers "should be done within the next month" when they have said to clients previously in their terms and conditions of business that it will be done within 30 days makes me wonder what else are they telling clients that they don't honour?
Clients who have not had their ISA's transferred within 30 days should at least ask for their £58.75 back from Towry Investment Management Ltd.
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Anonymous | 16 Jun 2010 1:12 pm
Answer to Exasperated. As I am sure you already know, the issues were being handled in the US by Edward Jones not by Towry. Towry bought EJ UK, not the entire company. If EJ HQ were dragging their feet then it is a matter for the SEC. Perhaps the FSA are already liaising with the SEC? Also US banking practices are very different, even standing orders are still managed manually by many banks there.
Accuracy 101 - Lecture 1. You're welcome.
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Anonymous | 16 Jun 2010 2:53 pm
Perhaps the adviser should be suggesting to "his large number of clients" that they register their dissatisfaction as a formal complaint to Towry Law. That should focus TL to do something to keep off the FSA radar!
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Frustrated Client | 16 Jun 2010 4:24 pm
Why when a transfer request was submitted in November 2009 and still not complete June 2010 has their been the delay first by EJ and now Towry.
Can we not have a comment on these pages from the FSA?
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Anonymous | 16 Jun 2010 5:40 pm
Andrew Fisher implies from his comments that it is Edward Jones in the US who caused the transfer delay problems. Edward Jones in the States has no contractual obligation to complete transfers for Towry clients. Towry bought Edward Jones Ltd in the UK late last year and since that time any transfer requested since that time has been the full responsibility of Towry.
If Edward Jones US did not provide a good service then Towry needs to deal with Edward Jones about this directly. Towry could have chosen any agent to help deal with the transfers. If they chose the wrong one that is Towry's responsibility. They should address it and put things right for clients.
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Anonymous | 22 Jun 2010 11:42 am
I attempted to transfer funds from Towry Law in February. They managed my ISA funds but not the other funds which were transferred incorrectly. I have had difficulty accessing them and had little explanation as to what has happened and why there is a shortfall.
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Anonymous | 23 Jun 2010 8:57 pm
5 members of my family in different geographical areas had accounts with Edward Jones. All have decided to change the investment manager to another company. Two have been waiting for a transfer for 4- 6 months despite complaint. Even a BACS transfer of cash within a week seems to be beyond this company. Factually, errors have occurred on dividend posting to accounts and payments into and out of accounts may appear late. Is this a matter of hard-nosed policy (despite the CEOs protestations), professional competency of Towry management and infrastructure ( pace its relationship to US Edward Jones) or more sinister? The company has suspended to six monthly its regular statements of accounts so it is extremely difficult to check and see what is going on. The company will no longer provide an advisory service to those operating a share portfolio. Not a good omen for an investor or a satisfactory governance approach after a takeover.
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Anonymous | 29 Jun 2010 10:58 am
Towry have some professiona l'fob off' staff employed to block any contact with the company. I am so pleased that I decided to change Companys - still cant get the transfer completed after 3 months or so.
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