OpinionDec 15 2014

Truth about Truro being UK advice hotspot

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
comment-speech

A press release from Unbiased has trumpeted that for the second year running Truro had been named the UK’s financial advice hotspot. You’ll have noticed we didn’t cover this as breaking news, but journalistic curiosity did get the better of me.

The financial adviser search engine used data gathered from its website to show that the capital of Cornwall had the highest percentage of population in the UK looking for financial advice, retaining its title from 2013.

The data also showed that the south generally has strong demand for advice, with Stevenage and Salisbury also remaining in the top three this year, although London was found to have the lowest percentage of population searching for a financial adviser.

Andrew Stallard, independent financial adviser at Worldwide Financial Planning, which has its head office in Truro, told FTAdviser that the Cornish feel rather remote and removed from Westminster politics, which has built a self reliance that might be a factor in people seeking advice.

“We’re the poorest county and feel ignored by London, so we just have to get on with it,” he suggested. “Around 60 per cent of people down here work in the public sector, so they have relatively poor wages but pretty good pensions, which again will push people into getting advice.”

Mr Stallard also noted the amount of retirees from “up there” choosing Cornwall as the nicest place to live out their golden years.

Roger Edwards, managing director at Falmouth-based Vision Independent Financial Planning, agreed that as the Truro postcode also includes pretty seaside resorts like St Mawes, St Ives and Penzance, local IFAs will benefit from “relocators” no longer having a branch of their previous adviser.

He saiD: “These relocators often also downsize when coming to Cornwall to retire either in size of property or value and so where they may well have been asset rich but cash poor whilst working, when they sell their higher value properties and take their pension lump sums, they find themselves with large amounts of cash needing to be invested for them.

“Our firm averages over £20m per month of new investments for our clients - although not all of this is in Cornwall as we have a far wider footprint of advisers.”

Mr Edwards also suggested that the calibre of IFA in the area is very high due to the lack of other employment opportunities.

“The service that my team offer their clients is exceptional and having done thousands of questionnaires, our average overall client satisfaction is over 97.5 per cent.”

John Waldie, managing director at another Cornish firm Atkins Ferrie Wealth Management, speculated that there are a large number of retirees from the home counties who move down and try to find a new adviser.

“I have been working here for 20 years and there is certainly a shortage of quality advice particularly from the larger players. Every large discretionary fund manager/stockbroker who has tried to make a living in Truro seems to have failed and pulled back to Exeter or Plymouth.

“Local Cornish naturally don’t like national firms so much prefer their local advisers. Our company aims to fill this gap this year by obtaining discretionary powers and providing a service you would expect from a national firm, but at a personal, local level.”

Colin Baker, an independent financial adviser at Truro-based Evergreen Financial Solutions, added that low interest rates have put pressure on savers with cash and he has noticed a rise in equity release enquires.

“However, I would have thought these issues would be across the board, not particular to Truro.”

peter.walker@ft.com