Each week the mystery shopper seeks advice from independent and tied advisers in the UK. The aim is to find out whether advisers are delivering the goods when it comes to the all-important initial telephone contact between client and adviser. It is only intended to evaluate this first interview, and it is understood that further meetings would be necessary before final decisions could be made. The purpose is not to expose poor selling practices, but to show constructively any weaknesses in the advice process.
This week the mystery shopper visits Sheffield. His wife plans to set up a bakery business after being made redundant and would like to raise £20,000 in start up money. The couple are contemplating raising the capital by remortgaging his property or going through another lending platform. The couple have £180,000 in the property and have clean credit histories.
Adviser (Independent):
W F I Financial LLP, Wfi House, 2 Queens Road, Sheffield, South Yorkshire, S2 4DG
Speed of response: Time of call: 10.59am. The call was answered after two rings. 5/5
Telephone manner: Courteous, friendly and engaging. 5/5
Relevant qualifications: Level four diploma. 5/5
Payment method:
The adviser said that the minimum charge is usually £500, but the charge figure can go up or down depending on the level of provider commission and the complexity of the case. 5/5
Guidance given:
The adviser explained the advisory practice does not offer business advice, but would be able to assist on the remortgage query. The shopper was told to seek guidance on business loans and advice on the key considerations before starting a company from his local bank branch. He added that lenders consider the strength of business plans, including cashflow forecast and the credit histories of those involved. 5/5
Knowledge:
Excellent. He explored all of the key considerations when it comes to starting up a new business. 5/5
Email/web presence:
simond@wfillp.co.uk
www.wfifinancial.co.uk 5/5
Verdict:
Impressive. The adviser delivered comprehensive guidance even though he knew it was unlikely to win him new business. The shopper would happily recommend him to his peers.
35/35
Adviser (Independent):
Greg Greaves – Futures Assured Ltd, The John Banner Centre, 620 Attercliffe Road, Sheffield, S9 3QS
Speed of response: Time of call: 11.30am. The call was answered after three rings. 5/5
Telephone manner: Polite and friendly. 5/5
Relevant qualifications: Level four diploma. 5/5
Payment method: £495 for remortgages. 5/5
Guidance given:
The adviser quizzed the shopper over his earnings, the market value of equity in the couple’s property and his credit score. The adviser said he could not envisage the shopper having difficulties in securing a remortgage. He also explored the key considerations before starting a business – that the couple could plunge into financial disarray if it went under. He added that banks’ decision to lend is largely based on the strength of the business plan.
4/5
Knowledge: Very good. The adviser showed good knowledge on all of the considerations. 5/5
Email/web presence:
g.greaves@futuresassured.co.uk
www.futuresassured.co.uk 5/5
Verdict:
The shopper was happy with the guidance delivered by an adviser who had good knowledge on all considerations.
34/35
Adviser (Independent):
Pace Financial Management, 200 Ridgeway Road, Gleadless, Sheffield, S12 2TA
Speed of response: Time of call: 11.48am. The call was answered within 20 seconds. 5/5
Telephone manner: Very friendly but somewhat curt. 5/5
Relevant qualifications:
Mortgage adviser (CeMap). 5/5
Payment method: Average fee of £375 plus provider commission. 5/5
Guidance given:
The adviser said remortgaging a property to fund a new business is viewed unfavourably by some lenders. He suggested arranging an initial consultation to discuss the shopper’s scenario in greater depth. 3/5
Knowledge:
Difficult to gauge based on the guidance delivered. The shopper assumed that depth of his knowledge on the matter would be on full display in an initial meeting with the adviser. 2/5
Email/web presence:
r.smith@pacefm.co.uk
www.pacefm.co.uk 5/5
Verdict:
The adviser said he would discuss the case in greater depth in an initial meeting, which makes sense, but the adviser would have appreciated more guidance at the first instance.
30/35
Provider
RBS
Speed of response: Time of call: 11.30am . The call was answered by an automated machine. The shopper was transferred to an adviser within one minute, 30 seconds.
3/5
Telephone manner: Very friendly and professional. 5/5
Relevant qualifications: The representative said he was not qualified to offer financial advice. 0/5
Payment method: Varies – on a case-by-case basis. 3/5
Guidance given:
The representative said the viability of the business plan was the most important consideration when accessing the suitability of a business loan application. He added that the provider’s business loans typically command a rate of interest between 7 and 9 per cent. 3/5
Knowledge:
The representative displayed good knowledge on RBS’s business loan criteria. 4/5
Email/web presence:
www.business.rbs.co.uk/business/business-lending-at-rbs/business-loan1.html 3/5
Verdict:
The shopper was satisfied with the information given by the adviser who adopted a friendly approach to the conversation.
21/35
