This week the mystery shopper is in Nottingham. He has recently inherited £16,000, which he is looking to invest over the long term, maybe into a stocks and shares Isa or a personal pension scheme.
Adviser (Independent):
CDG Financial Services, 64 Castle Boulevard, Nottingham, NG7 1FN
Speed of response:
Time of call: 3.45pm. The call was answered after one ring. 5/5
Telephone manner:
Friendly and polite. 5/5
Relevant qualifications:
Level four diploma. 5/5
Payment method:
A 3 per cent charge for advice on stocks and shares Isas, and a maximum charge of £600 for pension advice. 5/5
Guidance given:
The adviser said that a stocks and shares Isa was a good long-term saving mechanism because of the tax treatment, and also allowed customers to withdraw funds as and when they see fit – although this may be subject to additional charges. He said the tax treatment of the pension also makes it a favourable proposition.
The adviser calculated that if the shopper were to put £16,000 into a personal pension scheme, it would instantly equate to £20,000 because of the 20 per cent tax relief.
He said he would need to do a fact-find to determine the solution best suited to the shopper’s needs. 4/5
Knowledge:
The adviser appeared to be well-versed in both pensions and stock and shares Isas. With regard to the former, the adviser succinctly explained that a pension provider would claim tax relief at 20 per cent on behalf of the customer and add it to their pension pot. 3/5
Email/web presence:
david@cdgfs.co.uk
www.cdgfs.co.uk 5/5
Verdict:
Very good overall. The adviser’s explanations were comprehensive and clear on the advantages of both savings mechanisms.
32/35
Adviser (independent):
Cockburn Lucas Independent Financial Consultants, 45 Loughborough Rd, West Bridgford, Nottingham, NG2 7LA
Speed of response:
Time of call: 4pm. Answered after four rings. 5/5
Telephone manner:
Professional and polite. 5/5
Relevant qualifications:
The representative said he was not qualified to give financial advice. 0/5
Payment method:
Payment would vary on a case-by-case basis. 3/5
Guidance given:
The shopper first spoke to a receptionist, who then transferred the call to a representative. Informed of the shopper’s situation, she offered to pass his details on to a financial adviser within the firm. 2/5
Knowledge:
The representative did not appear knowledgeable on pensions or stock and shares Isas, which was understandable considering she was not qualified to give financial advice. 2/5
Email/web presence:
cp@cockburnlucas.co.uk
www.cockburnlucas.co.uk 5/5
Verdict:
The representative conducted herself well. She was accommodating, as demonstrated by her willingness to transfer the call to a financial adviser even though she was the first port of call for new enquiries.
22/35
Adviser (independent):
IFA 1, 16 Melbourne Road, West Bridgford, Nottingham, NG2 5BG
Speed of response:
Time of call: 4.06pm. Answered after three rings. 5/5
Telephone manner:
Very friendly. 5/5
Relevant qualifications:
Level four diploma. 5/5
Payment method:
Between £300 and £400. 5/5
Guidance given:
The adviser explained that the tax treatment of pensions was currently favourable. He also said that if the shopper were to invest the £16,000 in a personal pension, the sum would be bumped up to £20,000 because of the 20 per cent tax relief. However, he warned that potential future government tinkering with pension rules could have unforeseeable implications. The adviser also explained that the shopper was able to save just over £16,000 per financial year.
4/5
Knowledge:
The adviser displayed comprehensive knowledge of pensions in particular. He notably explored the wider implications of the pension freedoms, and the effect the changes have had on annuity sales. 4/5
Email/web presence:
marcus@ifa1ltd.co.uk
www.ifa1ltd.co.uk
5/5
Shopper’s choice:
The adviser’s explanation was clear and concise . He listened well and responded to the shopper’s queries in a friendly manner.
33/35
Provider
Nutmeg
Speed of response:
Time of call 4.19pm. The call was answered by an automated system and transferred to a representative within a minute. 4/5
Telephone manner:
Professional. 4/5
Relevant qualifications:
The representative said he was not qualified to give financial advice. 0/5
Payment method:
Payment would vary on a case-by-case basis. The representative explained that stocks and shares Isas were subject to an annual charge (from 1 per cent) and an underlying fund cost. 4/5
Guidance given:
The representative stressed that he was not qualified to give financial advice, and that the shopper should not misconstrue anything he said as advice. He explained the provider’s process when it comes to stocks and shares Isa investments, including risk-rated portfolios. 3/5
Knowledge:
The representative showed good knowledge of the provider’s stocks and shares Isas. 3/5
Email/web presence:
www.nutmeg.com/isas/isa-basics 3/5
Verdict:
Good. The representative was comprehensive in his explanations, often pausing to ask whether the shopper had understood what had been said.
21/35
