Australian financial giant AMP is buying IFA Towry Law for £75.7m,
ending months of uncertainty but provoking a row over an Investors'
Compensation Scheme bailout worth more than £30m.
Towry Law also announced a massive £73.5m loss for the last year.
The deal gives AMP 200 RIs in the UK and 100 international consultants.
AMP told Money Marketing that an end to polarisation would be the “icing on
the cake” for its UK strategy.
AMP's plans to snap up the IFA were exclusively revealed by Money
Marketing on April 5.
But IFAs are calling for an explanation of why the ICS will take the
lion's share of £48m-worth of pension liabilities uncovered in
Advizas, acquired by Towry from Hogg Robinson in January 2000.
Towry has guaranteed to pay £13m of this total. AMP will put aside
between £3.8m and £4.8m to pay investors not eligible for payment
under the ICS rules.
AMP (UK) managing director Tom Fraser says: “If depolarisation happens, it
would be the extra icing on the cake. This is not the main motivation as
the acquisition adds to shareholder value and quality of our distribution
network in the current structure.”
Towry Law chief executive Douglas Black says: “We will continue to focus
on best quality advice and what is best for the customer.”
The ICS says the Towry Law £13m pledge makes this the best resolution
for the industry and consumers.
But Syndaxi financial planning director Robert Reid says: “This will open
a can of worms if people perceive that it will add to their levy.”