Towry Law, the UK financial planner which has championed transparency and independence in the market place, denied claims it is incentivising advisers to sell in-house investment schemes.
Andrew Fisher, the CEO of the business, dismissed as “nonsense” a Times report claiming its contract of employment raised concerns over conflicts of interest for his advisers. The business is built around charging yearly fees for advice and financial planning, rather than commission-led models that have been criticised by consumer groups and regulators.
According to the report, a potential new recruit was offered a contact which included bonuses for attracting money into its Independent Investment Management (IIM) service. It included bonuses of 2 percent of salary for each 10 percent margin by which the adviser beat the target.
Fisher stressed that 90 percent of advisers’ salaries at Towry Law were fixed, with a maximum of 10 percent bonus.
“Any business they put on has to go through all of the compliance and checks and as we run an independent investment management service we figured that was a pretty good independent service offering,” he said.
Fisher added the business had recently moved advisers at Edward Jones, the business it acquired last year, from 100 percent commission to the Towry Law scheme.
“They are incentivised absolutely to look after clients’ money but the total incentive is 10 percent of their total remuneration and only paid if they meet all of the compliance standards. Rather than being 100 percent commission-based they are 10 percent incentivised to service clients,” he said.