Towry Law acquires adviser firm Edward Jones
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Towry Law has bought the UK subsidiary of the US adviser and investment firm Edward Jones which has 400 financial advisers and 50,000 clients with £1.5bn of client assets.
Source: Michael Walter/Troika
The acquisition is subject to FSA approval and Towry Law says it is a further step towards its strategy to become the leading independent fee-based wealth advisory firm in the UK.
Edward Jones will be integrated into Towry Law and will operate on a fee only basis. Towry Law currently manages over £2.8bn of assets on behalf of 13,000 clients.
Towry Law chief executive Andrew Fisher (pictured) says: “We are delighted that we have agreed this deal to purchase Edward Jones UK, in what is a significant development for Towry Law. Edward Jones is a high quality business with talented associates and a very strong client base. They share the same dedication to providing high quality services to their clients as Towry Law.
“The acquisition provides the opportunity for the combined business to become the major force in independent wealth advice in the UK and be well placed to continue to lead the industry in the adoption of the new rules following the retail distribution review, with fully qualified advisers offering fee based independent advice.”
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Readers' comments (42)
Anonymous | 23 Oct 2009 12:40 pm
These 2 firms are at opposite ends of the market. Edward Jones manages an average portfolio of £30k per client and gets its business by knocking on doors. Whilst Towry Law manages on average, £200k per client and is pure fee based with introductions from accountants and solicitors. This makes no sense to me.
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Anonymous | 23 Oct 2009 12:50 pm
attraction is FUM. I dont see many of the 400 "associates" retaining their jobs, nor the existence of a weaker brand in a few months time. EJ was mad. large strong US group, whose strategic plan worked in the states where such products are still viable at this end of the market. they moved into the UK when regulation was increasing, margins were falling, and the public were sceptical. surprised they lasted this long.
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Anonymous | 23 Oct 2009 12:56 pm
Another US company ditching their UK arm...
Met Life next?
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Julian Stevens | 23 Oct 2009 12:58 pm
Fee-only business? So, from now on, there'll be no more initial charges calculated as a percentage of funds being invested (the bigger the sum, the bigger the "fee", even though the amount of work will be no different) and no ongoing charges calculated as a percentage of funds under management? It'll all have to be strictly hourly rates or a flat fee for an agreed programme of work.
Difficult to adapt to at short notice if you've been used to working predominantly on a commission-based model. Never mind, I'm sure Towry Law will help them make the transition with a minimum of difficulty.
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Anonymous | 23 Oct 2009 1:03 pm
RIP Edward Jones,not surprised they could not survive with the regulation we require here,T Law get a lot of clients and will sift out the good ones and abandon the rest to the clutches of the banks.A sign of things to come I am afraid,ahead of the mass IFA exodus in 2012.A pity it has come to this as ultimately its the public who will be the poorer for it.Well done to the FSA.
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Anonymous | 23 Oct 2009 1:21 pm
I have to agree with the comment that these are at opposite ends of the market. I also thought that cold calling was against UK practice. However!!!!!!!!!!
Funds under management at Towry will increase but will the retained clients be proportionate?
We are, I am afraid, our own worst enemies in the UK whilst ever we allow European directives to rule us.
It seems that even the mightiest ships cannot avoid the slippery slope. What's that song? Rule Britannia!!!! Sadly, I hardly think so.
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Hugh Brown | 23 Oct 2009 1:27 pm
As others have said, their two businesses are at completely different ends of the market. Mr Fisher is very good at trying to switch things round to suit, but this is really pushing it.
No doubt the opportunity for Towry Law is to get these inherited clients, if they can retain any, to pay exorbitant annual charges for managing their funds!!!! But, of course,that isn't trail commission is it?
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Anonymous | 23 Oct 2009 1:32 pm
What Towry Law hope to gain out of this no brainer is probably just the publicity. Once the purchase goes ahead and the consultants at Edward Jones realise the Towry Law client proposition will not fit 98% of thier client bank the consultants will disapear along with the client assets. RIP Ewdard Jones
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dave | 23 Oct 2009 1:43 pm
i work for e j and was in home office when announcement made. Agree with other posts , they'll poach best clients that stay then shut down what would be looked at as e j in the uk
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Anonymous | 23 Oct 2009 1:45 pm
I recently lost a client to EJ who didn't understand the difference between sales advice and financial planning advice. She didn't want to pay me a fee as the EJ advice was 'free'. Only it turned out that the commission for churning her portfolio was considerably more than my fee would have been. Guess the RDR would have eventually stuffed EJ anyway.
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