You are here: Home - News -

IFA Ashley Law faces court action

  • 07/04/2003
  • 0
Past members of independent financial adviser network, Ashley Law, are involved in an action gr...

Past members of independent financial adviser network, Ashley Law, are involved in an action group to investigate the possibility of suing the firm under a joint action.

The dispute has arisen over issues relating to the payment of commission and the marketing of franchise members’ businesses.

A meeting of up to eight concerned IFAs is expected to take place on 8 April.

Former Ashley Law member, Ned Naylor, who is involved with the group, said there was already an individual legal action filed from another past member, Chris Wilson, against Ashley Law.

He added: ‘There are around eight others who are getting together on 8 April to discuss how to proceed with a possible joint action against the company.’

Naylor said Ashley Law had undertaken to: ‘Expend an amount equal to four percentum of the Lincensee’s gross sales’ to promote his business, Ashley Law Blackburn, however he claimed he had seen no such expenditure made. Indeed, he cited the minutes of the Ashley Law Development Forum meeting on 6 March this year, where it was noted: ‘Ashley Law’s margin is insufficient to carry out serious [marketing] exercises without the participation of members,’ to make his point.

Jock Cassidy, managing director of Ashley Law, said he was not prepared to discuss specific comments made by Naylor, but said the fact that Ashley Law did not have sufficient margins within which to offer large marketing campaigns in no way meant it was in breach of contract with licensees.

While a group action has not been put into motion, there are ongoing individual disputes.

Wilson has taken one such action against Ashley Law and filed a claim against the company with Guildford County Court. William McAllister of solicitors, Conway & Co, is acting on Wilson’s behalf.

McAllister said: ‘The dispute is in relation to several alleged breaches of the franchise agreement. First, it is alleged monies due on a monthly basis under the franchise agreement have either not been paid or are continually late by between six and 12 months. Second, there are monies outstanding from as far back as 1997 and no reason has been given for the late payment and no accounts produced to explain why.’

He said there were also aspects to the claim: ‘Alleging contractual stipulations for Ashley Law to undertake marketing had never been complied with.’

Cassidy said of the claim: ‘Our solicitors have lodged an action to have the case struck out because the claim by Mr Wilson: ‘is incoherent, alternatively it does not disclose any legally recognisable claim against the defendant, alternatively it is vexatious and embarrassing to the defendant’.’


There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Secured mortgages

An increasing number of sub-prime lenders are securitising their business, and so brokers need to be aware of the implications...