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Towry Law paid £1 to buy £35m loss-maker Ed Jones

Towry Law paid just £1 to take over the UK arm of Edward Jones which made a loss of £35m last year.

Edward Jones is a mainly commission-based advisory firm with a total of 400 advisers, 50,000 clients and £1.5bn in client assets.

Whitechurch Network managing director Ian McIver says he has had a number of enquiries from Edward Jones’ advisers following the firm’s merger with Towry Law.

McIver considers that the response from advisers has been more pronounced than he has seen in other previous mergers.

He says: “Advisers are already going out to the market to say ‘I do not think I fit’ rather than waiting to see what deal is on the table.

“I have never seen a merger have such an impact in reverse. That is not to say that advisers will not take the deal offered but I am astounded by the number of people ringing to talk.”

Towry Law last week shrugged off claims of a culture clash between the two firms after advisers raised concerns about its fee-based model.

McIver says: “Although markets are tough, I am flabbergasted that running certain businesses costs so much money and if you have got so many advisers, why can you not turn that into profitability?”

Towry Law chief executive Andrew Fisher says that the company expects to confirm staff roles within the next few weeks.

He says: “I would expect people to be considering their options, given that they have gone through a huge shock. It does not surprise me at all. I would hope and expect them not to make an instant decision, as they do not have to.”

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