I have just been reading an article in Money Marketing, April 1, in which Towry Law state they are confident of meeting independence rules. Are Towry Law an advisory firm or a product provider?
They sell or advise clients to use a unit trust which they manage. To me, that sounds like they are a product provider, what is the difference between their unit trust and, say, a Jupiter fund of funds’ offering?
It is this sort of thing that muddies the waters and leads to companies such as Keydata being classed as an advisory firm, not a provider, and advisers then get stung when they go belly up.
Mr Fisher of Towry Law believes they have the most comprehensive whole of market offering with their funds. As far as I can see, it is still a product and advice by the firm leads clients to their product.
By calling themselves discretionary managers seems to exempt themselves from being product providers. What is to stop product providers doing the same? Before we know it, we would have loads of “fund managers” flogging their products to the public wrapped up as independent advice.
Managing director Tinsdale Investment Management