Towry Law reports "positive response" from Edward Jones advisers
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Towry Law chief executive Andrew Fisher says he has met with more than half of the Edward Jones advisers and has received a “very positive response”.
Fisher’s comments come despite the large numbers of Edward Jones advisers who have flooded the MM website in recent days complaining about the deal. Last week Towry Law announced it had bought the UK subsidiary of Edward Jones, which has 400 financial advisers and 50,000 clients with £1.5bn of client assets.
Fisher says he has met with 270 advisers and the majority have responded positively to the takeover.
The advisers all have an existing contract with Edward Jones that prohibits them from soliciting any clients for 12 months if they leave the firm.
Fisher says if Edward Jones advisers decide not to join Towry Law they will not be permitted to take their clients with them.
He says: “That is what is stipulated in the Edward Jones contract and it is what they entered into when they joined the firm. It is a standard contract. It has nothing to do with Towry Law.”
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Readers' comments (20)
Anonymous | 28 Oct 2009 4:49 pm
My first thought after reading this article was B*****ks my second thought was DOUBLE B*****ks
Has he read the articles, on the many blogs reporting this weeks events?does he really think the advisors are going to express their real thoughts with their current boss Tim Kirley in the room and their potential future boss Andrew Price in the room?.
He needs to pullout from yet another merger which will be the right thing for the Edward Jones clients and Edward Jones need to allow it's current advisors to take their business where ever they feel is best without any hassle in the future.
EJ have certainly screwed their chances with all the UK workforce and their clients.
Does anyone know which large IFA firm pulled out of merging with TL last month?
I don't want to jump out the fire into the furnace
I know 1 out of 425 advisors that are willing to give TL a chance and it's isn't me.
Any improvement on 1?
Mr Fisher if this doesn't get into double figures you can forget the stretch for next years IPO.
More like announcing a loss with all the liabilities you are going to pick up.
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The Mystery Shopper for IFAs | 28 Oct 2009 5:25 pm
More spin from you know who!
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Anonymous | 28 Oct 2009 5:26 pm
personally I don't believe a word Mr Fisher says!!
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Anonymous | 28 Oct 2009 5:29 pm
I am an advisor with EJ and am now feeling quite positive about Towry Law. I am relieved to be honest that we now know where we are going, with the losses we sustained last year as a company... what was the credible alternative?
With RDR we have to embrace change anyway. Everyone stop being so negative and give it a chance!
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Anonymous | 28 Oct 2009 5:30 pm
Inevitably a merger/takeover of this size will cause anxiety. The old 2:1 syndrome strikes again.
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Anonymous | 28 Oct 2009 5:31 pm
I think the situation has been handled in a shocking manner. All the clients have been sent a letter telling them nothing will change?! Of cours it will otherwis Edward Jones would not have sold! The real issues are the uncertainity now surrounding the role going forward. I personally do not know of a single broker that is happy about the stuation! i have been with Edward Jones for less than a year and am still in the early stages of "building my business". Towry Law will not want me as I cannot possibly write the same levels of business as advisers that have been with Edward Jones for 6-7 years. Where dos that leave me?! Tim Kirley has sold us all down the river. Why couldn't he offer us the chance as brokers to reorganise the company together. i would have happily shared an office with other brokers but still under the Edward Jones name. It is going to be a very lean Christmas I'm afraid!
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Julian Stevens | 28 Oct 2009 6:03 pm
Andrew Fisher might well be favourably considered for the post of FSA Press Officer in the event of Robin Gordon-Walker stepping aside.
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Anonymous | 28 Oct 2009 6:45 pm
Towry Law bought MLP and within ONE YEAR, 60% of the MLP advisers had left. Another 6 months later and the figure was 75%.
Makes you think.
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Anonymous | 28 Oct 2009 7:36 pm
I believe there is a fundamental issue here, TL and EJ are miles apart in terms of synergy however the true wealth of any company at present in financial services is 'funds under management' and that is what TL have went for. Does any EJ adviser think that a firm which has positioned itself at the highest level in terms of full chartered status and fee based advice will look to retain the EJ salesforce and more importantly just how many EJ clients fit the TL profile. It is very interesting to note that the above quote from TL regarding EJ advisers being positive but then mentioning the contractual issues around contacting clients should they leave only points to asset stripping of immense proportions. I have spoken with many EJ advisers and the main concern centres around what will happen to clients with stocks and shares who have esentially products in their portfolio that TL cannot service due to UK FSA guidlines? It is a shame that it appears to me the only individuals who are concerned with TCF in this sorry mess are the EJ advisers who if they are smart will recognise that a long term future with Tl is not a realistic option. Go mainstream IFA guys as that is where your clients will be best serviced by you in the future and remember people do business with people, not firms.
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Anonymous | 28 Oct 2009 7:47 pm
Seems to me that TL is essentially a CEO with big ego & share options backed by venture capitalists (Palamon) - all out to line their pockets.
Plan appears to be to buy up assets at a reasonable price and spit out unwanted clients and staff along the way. Coupled with high initial and annual charges based on AUM, it's a nice little formula if Mr Fisher can actually generate a profit (something he had a problem doing in last accounts) and PE ratios for the sector recover. He and the venture capitalists can then offload the company, no doubt pocketing a very tidy sum in the process.
Meanwhile, the clients end up with what appear to be rather expensive funds of funds and a probable change of ownership down the line when the vc's decide to exit. I'm struggling to think of a large IFA that's gone through a change of ownership for the better!
I've no doubt that TL is better than some in this industry, but ultimately it's more a slick sales machine and asset gathering operation than high end wealth manager.
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