JS&P Towry Law says all the firm’s advisers should be able to double their salaries in2007.
The firm has completed the final stages of the integration of Towry Law since the acquisition by JS&P a year ago and has implemented a new remuneration structure that is less reliant on commission.
Chief executive Andrew Fisher says IFAs will see the proportion of their remuneration from bonuses diminish as the structure moves to one that is no longer solely dependent on new business figures.
He says that by focusing on existing clients rather than new ones and building up a book of ongoing business, advisers should be able to increase their salaries as often as every quarter, when the firm’s remuneration review will take place.
Fisher says: “Their salary could go up as often as every quarter but the proportion of their bonus will go down, so their overall remuneration will not change immediately.”
But he claims if IFAs ensure their regulatory updates are compliant and they are managing clients’ assets holistically, they can increase their salaries but he has changed the company’s bonus scheme away from one that encourages sales-based payments.
Fisher says: “Every one of our IFAs can double their salary if they build a book of business based on existing clients, not new clients. Providing that they follow all the regulatory updates and manage clients’ assets holistically, their salary should double.
“In the longer term, we want to see people earning more on longer-term business rather than short-term business. Our new bonus structure has been set up so it does not encourage payment that is based on product sales.”
‘Lone voice’, p2