Each week the mystery shopper seeks advice from independent 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 Suffolk. The shopper has £18,000 in a cash Isa and wants to put it into a stocks and shares Isa account to buy a flat in the next five to seven years. She is 27 years old, single and has no debts.
Adviser: Williams Farrall Woodward (independent)
Address: Priority House, 8 Turret Lane, Ipswich, Suffolk, IP4 1DL
Speed of response (time of call): 10.40am. One ring then put through to an adviser. 5/5
Telephone manner: Friendly and professional. 5/5
Relevant qualifications: Associate of the Chartered Institute for Securities & Investments. 5/5
Payment method: Specific charges will depend on what the shopper wants to achieve. 2/5
Guidance: The adviser said stocks and shares can be volatile and any investment in that sector should be done for the long term. He suggested meeting to ascertain her attitude to risk and the most relevant option. He made her aware that stocks and shares might not be the best option because the resulting fee could be disproportionate to the amount of money she wanted to invest. 4/5
Knowledge: The shopper felt the adviser could have gone into more detail about the various options available to her and explored her financial situation in greater depth. 4/5
Website: www.wfw.co.uk
Email address: kevin@wfw.co.uk 5/5
Verdict: The adviser explained the potential risks of a stocks and shares Isa, but the shopper did not feel he provided enough detail.
Score: 30/35
Adviser: Woodward Markwell Insurance Brokers (independent)
Address: Friars House, 2 Falcon Street, Ipswich, Suffolk, IP1 1SL
Speed of response (time of call): 10.46am. One ring then transferred to an adviser. 5/5
Telephone manner: Friendly and professional. 5/5
Relevant qualifications: DipFs. 5/5
Payment method: An £18,000 investment in stocks and shares will attract a fee of about 3 per cent, or £250, depending on the package. 4/5
Guidance: The adviser said when she looks at investing in stocks and shares on behalf of clients, her strategy is to invest for the long term to manage risk better. Because the shopper wants to put the money towards a mortgage, she would suggest a less risky strategy, such as a lifetime Isa or help-to-buy Isa. With the lifetime Isa there is more flexibility around how much she can put into the fund. 5/5
Knowledge: The adviser sounded very knowledgeable and also gave the shopper other investment options that might be more relevant to her. 5/5
Website: www.woodwardmarkwell.co.uk
Email address: blythl@wmibl.co.uk 5/5
Verdict: Shopper’s choice. The adviser spoke to the shopper in a lot of detail and offered a wide range of options that did not necessarily involve a stocks and shares Isa. The adviser inspired confidence in the shopper.
Score: 34/35
Adviser: Family Finance Centre (independent)
Address: The Old Bakery, 4-6 London Road, Wrentham, Beccles, Suffolk, NR34 7HE
Speed of response (time of call): 11.20am. One ring then transferred to an adviser. 5/5
Telephone manner: Friendly and professional. 5/5
Relevant qualifications: DipFs. 5/5
Payment method: Minimum charge of £500. 5/5
Guidance: Due to the level of risk attached to a stocks and shares Isa, the adviser recommended a minimum term of five years for the investment. He told the shopper he would like to arrange a fact find meeting to ascertain what the best option would be and to understand her attitude to risk. 4/5
Knowledge: The adviser gave the shopper some information, but she felt he could have given her more detail. 4/5
Website: www.familyfinancecentre.co.uk
Email address: steve@familyfinancecentre.co.uk 5/5
Verdict: The adviser was friendly and provided some information, but not enough for the shopper to understand what her broad range if options could have been.
Score: 33/35
Adviser: St Edmundsbury Financial Services (independent)
Address: 88 Whiting Street, Bury St Edmunds, Suffolk, IP33 1NX
Speed of response (time of call): 11.31am. One ring then put through to an adviser. 5/5
Telephone manner: Friendly and professional. 5/5
Relevant qualifications: Regulated diploma in financial planning. 5/5
Payment method: Minimum fee for repositioning an Isa is £600. 5/5
Guidance: The adviser told the shopper that the stocks and shares Isa would be free of capital gains tax and that due to the amount she wanted to invest – £18,000 – it would not need ongoing management. If a stocks and shares Isa is the best route he could pass her case to a fund manager, which would take away the need to pay him to move the Isa. 4/5
Knowledge: The adviser mentioned that the company had a mortgage arm, which she might be interested in if and when the time came to apply for a mortgage. 4/5
Website: www.steds-fs.co.uk
Email address: gaustin@steds-fs.co.uk 5/5
Verdict: The adviser tried to be helpful, but the shopper felt he could have spoken in less complex terms and used more plain English.
Score: 33/35