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Raymond James court case costs Towry £2.3m

Towry incurred litigation costs of £2.3m in 2011 relating to the court case it brought against Raymond James and seven former Edward Jones advisers.

In February, a High Court judge dismissed all charges brought by Towry over alleged client solicitation. Towry was seeking damages of £6m but was ordered to pay Raymond James’ full legal costs of £1.2m.

At the time Towry refused to reveal its legal costs for the case.

The firm’s 2011 accounts, published today, say: “Litigation costs in 2011 relate to a court case involving the actions of former advisers and reflect the total estimated costs payable by the group.”

The accounts also reveal Towry had to pay “exceptional regulatory costs” of £1.3m, after the FSA fined the firm £494,000 in September for client money breaches.

The accounts say: “Exceptional regulatory costs in 2011 relate to improvements to our client money and asset procedures and controls following a review of this area by the FSA.”

Towry saw a pre-tax operating profit of £10.2m in 2011, compared to a £5.5m loss in 2010 following £17.7m in costs related to the integration of Edward Jones.

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Comments

There are 6 comments at the moment, we would love to hear your opinion too.

  1. Has the rose garden turned into a bit of a farmyard? FSA fines/ exceptional regualtory costs/ costs of failed litigation!! Ouch

  2. Having been on the receiving end of Towry’s ‘pit bull’ lawyers myself, and having seen them off, it serves them right. Perhaps they won’t be so keen to threaten others in the future.

  3. That photograph of Fisher says a great deal about the sort of person he is ~ a nasty, aggressive and arrogant little man, whose backside we’re all very pleased to have seen resoundingly kicked. The judge in TL’s action against the RJ7 clearly formed just such a view of him.

    I’ve not read anywhere a single post expressing any sort of support or praise for him, not even anonymously from somebody still working for TL. One might expect there to have been just one TL employee who felt able to write something to the effect that he’s tough but fair, committed to building a quality team of advisers, instilling high standards of customer care and service, etc. But no, not a single one. Just lots of posts from ex-TL people, all saying how very glad they are to be out and away from Andrew Fisher.

    Given the central TL philosophy of shovelling all and sundry into its own decidedly less than stellar range of funds, it’s tempting to surmise that those still there are either:-

    1. prepared to compromise their ethics in the interests of continuing employment and a monthly pay cheque or, in these difficult times,

    2. they’ve been unable to find an acceptable alternative position with another firm.

    For all that, though, I suppose that if TL really did suspect client solicitation, it couldn’t be seen merely to do nothing. Had it not at least tried, it would have been open season for all and any other departing TL employees. But, having embarked on legal action, it seems to have been AF’s own personality that set the seal of doom on its prospects of succeeding. Oh well, that’s business, I guess.

  4. Perhaps judgement day is comming for towry….?

    There is certainly a ‘perception’ they seem to just keep getting away with being the bad boys. Their reputation can only take so much damage?

  5. Some years ago I visited Towry Law with a view to becoming a” salaried adviser” and found that far from being the most unbiased option, I would have had to generate circa £100K “commission income” to receive a lamentable “salary” of around £20K and no leads, go out and sell, sell, sell products.

    If I could have achieved such a level of personal “commission ” sales without help, I told them I would not be here.

    Interview terminated by me forthwith.

    I found their management style overly aggressive and not what I want to take part in.

    Looks like I made the right decision as I have adhered to my core value, the clients needs are the most important part of our business, not what we can screw out of them.

    Not really looking forward to RDR as up to now, despite being time costed and fee based since 2003, the majority of my clients when presented with a choice in monetary terms chose the commission options.

    Still, we shall see what transpires as we are continually faced with great opportunities, brilliantly disguised as insoluble problems.

    I now operate as a sole trader IFA within a superb network, that matches my attitude to clients and will work towards continuing to serve clients needs as the ultimate focus.

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