As a former employee and director of the Towry Law Group for over 16
years,I am saddened by the fact that the legacy being left to the financial
services industry by Towry Law would appear to be a misselling liability of
£30m, which will have to be picked up by other IFAs, including myself,
via the Investors' Compensation Scheme.
Clearly, as the purpose and presumably only remit of the ICS is to
compensate investors only when any appropriate liabilities cannot be met
from company assets or the companies' professional indemnity policy, one
would think that the shareholders of Towry Law would receive absolutely
nothing from the £75.7m payment for the company by AMP.
It would appear that MP Paul Flynn is asking questions in Parliament about
the role of the ICS in the sale of Towry Law to AMP, with the response he
receives certainly being of interest to the IFA community.
If it is established that any residual benefit of the sale has passed to
the shareholders of Towry Law and that this action is without the
remit/authority of the ICS and the PIA, there will certainly be at least
one formal complaint being made to the PIA/FSA.