Towry Law has started applying transfer charges for clients leaving the firm but insists that the charges were always written into Edward Jones’ terms and conditions.
Money Marketing revealed last month that disgruntled former Edward Jones clients had set up a petition calling on the Government to force the FSA to take action after they faced delays of up to four months to transfer their funds away from the company.
Treating Customers Shabbily petition organiser John Simpson says Towry Law has now started to apply charges to transfer clients’ mutual funds to another product provider when it has not previously done so.
Towry charges £20 per fund or £57.50 for an Isa transfer.
Simpson claims Towry previously assured clients there would be no charge.
Towry says the transfer charge was always written into the terms and conditions for Edward Jones clients but the firm often did not implement the charge. The company insists that it does not make money out of the charge and says it will be waived for clients who have faced “extreme difficulties” in re-registering assets.
This week, Towry Law announced that it has cleared the backlog of account transfer requests, although there are still some issues with platform re-registration.
Chief executive Andrew Fisher says: “With hindsight, we certainly could have communicated better and reacted more quickly to what was an unanticipated problem that we encountered.”