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.

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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.

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“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.