View more on these topics

The Towry allegations

The court case brought by Towry against IFA firm Raymond James and seven former Edward Jones advisers cenred on allegations that advisers breached non-solicitation clauses in their restricted covenants and solicited clients.

Towry made the allegations after the advisers declined to join the firm following its acquisition of Edward Jones in October 2009, instead joining Raymond James. Towry tried to reclaim £6m in damages for the alleged client poaching. It claimed nearly 400 clients transferred investments worth over £33m from Towry EJ Limited to Raymond James shortly after the deal completed.

Towry’s allegations:

  • The seven advisers solicited up to 388 clients worth more than £33m to move with them to Raymond James in breach of the non-solicitation clauses in their Edward Jones contracts.
  • Towry suffered £5.8m in lost business as a result of this solicitation.
  • Raymond James offered inducements to seven former Edward Jones advisers to breach their contracts.
  • Raymond James conspired with one or more of the advisers to breach their contracts.
  • In three separate instances, advisers conspired with each other to breach their Edward Jones contracts (Towry dropped conspiracy allegations in July in its closing submission).
  • Advisers used confidential client information to solicit business and it was “overwhelmingly likely” this was passed on to Raymond James.

High Court judge Mrs Justice Cox this week dismissed all claims against all the defendants, stating that Towry had failed to prove the allegations of wrongful conduct against Raymond James and the seven advisers. The judge also expressed surprise that allegations of conspiracy had not been dropped earlier in the case.


Henderson to merge away 12 funds

Henderson has announced plans to merge away 12 funds as it continues to rationalise its range following the acquisition of both New Star and Gartmore. The rationalisation will take place in two tranches in May 2012 and July 2012 and are subject to regulatory and shareholder approval between April and June 2012. Henderson is also […]

Arrest made in FSA and SOCA insider dealing investigation

A 44 year old man has been arrested today as part of an ongoing investigation by the FSA and the Serious Organised Crime Agency into insider dealing. The arrest followed searches at one London business and two domestic premises in London and Kent. The man has been interviewed at a London police station. The same […]


Towry agrees to pay over £930k in legal costs

Towry has agreed to pay in full Raymond James’ legal costs of £930,936 plus VAT for the High Court case it brought against the rival adviser firm. Both parties have spent this afternoon negoiating the costs to be met by Towry after Mrs Justice Cox dismissed the case against Raymond James and seven former Edward […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm