Towry calms Ed Jones' clash fears
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Towry Law has sought to reassure advisers of newly acquired Edward Jones that there is no culture clash between the firms after advisers raised concerns over the move to a fee-based model.
Last week, Towry Law bought the UK subsidiary of the US adviser and investment firm Edward Jones which will be integrated into Towry Law and will operate on a fee-only basis.
Following the news of the deal, the Money Marketing website was flooded with messages of concern from Edward Jones’ advisers.
Edward Jones is mainly a commission-based advisory firm, with 400 advisers, 50,000 clients and £1.5bn in client assets.
Towry Law manages over £2.8bn of assets on behalf of 13,000 clients.
Current and former Edward Jones’ advisers commented on MoneyMarketing.co.uk, saying the combining of the businesses did not make sense and that they thought many of the Edward Jones’ advisers would not be kept on by Towry.
Towry Law head of strategic marketing David Middleton says: “I think there are very few takeovers where 100 per cent of the staff stay on. I would take issue with the claim that there is a culture clash. Both businesses are very focused on servicing clients and have a high level of integrity. I cannot see that there is a culture clash going from commission to fees.”
One adviser, who wanted to remain anonymous, said: “I work for EJ. Anyone looking to hire an FA/stockbroker with two clients and 600 prospects? I am not holding my breath to be taken on by TL as well as all the debt.”
Another former Edward Jones’ adviser said: “I doubt most of the advisers at Jones would survive the Towry Law business model, their clientele is different. How do you explain to granny Jones that she has to pay you £500 to be able to invest her £50,000 that she has had at the building society for the past 20 years?”
Another commented: “I work for Edward Jones and the business model just was not suitable for the UK. There are ups and downs to every company, including, fees, etc. We, EDJ, are flourishing in the USA.”
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