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Towry Law bid for commission hike is rejected

Life offices have rebuffed an attempt by national IFA Towry Law to raise

its commission levels by 10 per cent, Money Marketing has learned.

Towry Law demanded enhanced commission terms because of its increased

distribution muscle followingthe acquisition of fellowIFA Advizas.

But many life companies have rejected the proposal, fearing it could open

the floodgates for others, say industry sources.

Towry Law chief executive Douglas Black would only comment that he was

“fairly pleased” with the deals hehad struck with various life companies.

Money Marketing rev-ealed in March that Towry wanted 160 per cent of

Lautro rates for term insurance and 155 per cent on single- and

regular-premium plans in cases where Lautro commission is still being paid.

In other cases, it wanted commission at 10 per cent over the standard

national and regional IFA rate.

At the time, it said life offices had held all the cards for too long and

now the “boot was on the other foot”.

Another national IFA says: “When I asked between 15 and 20 of my suppliers

if they would accept Towry&#39s terms, they said, no chance. It took an

argumentative stance that would have squeezed out smaller players.”

One life office spokesman says: “We did not accept the terms as they would

not bode well for the rest of the market.”

Black says: “We do not tend to comment on these sorts of issues. We are

fairly pleased with the position we have come to with the majority of life

companies.”

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