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‘Towry Law failed to switch trail cash when client moved’

Campbell Munro director David Munro has hit out at Towry Law, saying the firm has failed to transfer trail commission to his firm seven months after he took on an ex-Towry Law client.

Munro says he wrote to Towry Law in April regarding a client who has left the company and has moved to Campbell Munro for finan- cial advice.
He says the client signed a letter authorising Campbell Munro to receive future trail commission on her investments and policies and requested Towry Law to countersign a letter to her product providers authorising the switch of trail commission.

Munro says that Towry Law failed to countersign the letter and Towry Law continues to receive trail commission for the client.

Last week, he wrote to Towry Law chief executive Andrew Fisher, challenging his recent claim that it is not possible to track the 300,000 clients Towry is receiving £6m a year in trail commission for. He says: “This is completely against the terms of the FSA’s treating customers fairly regime and the client expressly wanted us to receive this commission to offset any future fees due.

“You have no place to hide with the statement of the physical impossibility of tracing this client as she has been presented to you with full details.”

Fisher refuses to comment on individual cases but says: “If a client wants a life company to change an agency agreement between one IFA and another IFA, we would always allow that to happen.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Is it Skandia by any chance?
    If so, Mr Fisher may be his usual decitful self in that Skandia will accept change of agency based on the client’s signature alone, but not change of commission agent withou specific confirmation from the original selling agent too.

    Please see below defintion of deceit and come to your own conclusions http://en.wiktionary.org/wiki/deceit

  2. Yes, I’ve had that problem with Skandia as well on Life & Pension plans but it doesn’t apply to MultiFund/ISA plans.

    The best thing to do is to get your client to complain to both Skandia and the former IFA as a breach of TCF. At least make ’em all work for the commission they are trying to retain. Also sent a copy of the letter(s) to the FSA I bet their TCF task force is always looking for work!!

  3. You may care to measure Mr Fishers comments against this definition. It would be nice if the FSA as part of TCF did the same.
    http://en.wiktionary.org/wiki/deceit

  4. The trail commission is being held back for one of two reasons.
    Firstly, to pay the salaries of the Edward Jones staff that accepted the offer to move to TL until they hit the unrealistic targets set.
    Secondly to give a false valuation for an intended IPO, which Mr Fisher confirmed was his intention in a recent citywire article.

    Until the FSA take note of the comments by Financial Advisers this problem will not go away.

    To the FSA please keep in mind, Financial Advisers are regulated by the FSA, they have to been deemed ‘fit and proper’ with ‘Honesty and Integrity’ so the majority of comments made by Financial Advisers should be noted and not ignored.
    Good Luck, you will need it.

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