JS&P Towry Law says it has lost just five advisers and no clients after moving to a feeonly model.
The firm says it expected between 15 and 20 advisers to go but only five have said they are leaving. None of 2,000 clients contacted with details of the move away from commission have indicated that they are taking their business elsewhere.
Since JS&P was formed in 2006 through the merger of John Scott & Partners and Towry Law, it has stressed its commitment to driving down IFAs’ reliance on initial commission.
Chief executive Andrew Fisher says he would ideally like to see the FSA’s retail distribution review result in a ban on commission but he recognises this could be some way off.
He says many advisers at the lower end of the market would be driven out of business if providers stopped paying high up-front commission.
Fisher says: “I hope to see the capital requirements of IFAs increase but also to see more regulation brought into the industry. Commission should be banned or the amounts of commission paid out should be regulated to a point.”