'Towry Law failed to switch trail cash when client moved'
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Campbell Munro director David Munro has hit out at Towry Law, saying the firm has failed to transfer trail commission to his firm seven months after he took on an ex-Towry Law client.
Munro says he wrote to Towry Law in April regarding a client who has left the company and has moved to Campbell Munro for finan- cial advice.
He says the client signed a letter authorising Campbell Munro to receive future trail commission on her investments and policies and requested Towry Law to countersign a letter to her product providers authorising the switch of trail commission.
Munro says that Towry Law failed to countersign the letter and Towry Law continues to receive trail commission for the client.
Last week, he wrote to Towry Law chief executive Andrew Fisher, challenging his recent claim that it is not possible to track the 300,000 clients Towry is receiving £6m a year in trail commission for. He says: “This is completely against the terms of the FSA’s treating customers fairly regime and the client expressly wanted us to receive this commission to offset any future fees due.
“You have no place to hide with the statement of the physical impossibility of tracing this client as she has been presented to you with full details.”
Fisher refuses to comment on individual cases but says: “If a client wants a life company to change an agency agreement between one IFA and another IFA, we would always allow that to happen.”
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Readers' comments (2)
Anonymous | 19 Nov 2009 8:54 am
Is it Skandia by any chance?
If so, Mr Fisher may be his usual self in that Skandia will accept change of agency based on the client's signature alone, but not change of commission agent withou specific confirmation from the original selling agent too.
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Anonymous | 19 Nov 2009 9:35 am
Yes, I've had that problem with Skandia as well on Life & Pension plans but it doesn't apply to MultiFund/ISA plans.
The best thing to do is to get your client to complain to both Skandia and the former IFA as a breach of TCF. At least make 'em all work for the commission they are trying to retain. Also sent a copy of the letter(s) to the FSA I bet their TCF task force is always looking for work!!
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