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 Portsmouth.
The shopper and her sister have inherited £150,000 and £100,000, respectively, from their grandfather. They have been reading about enterprise investment schemes (EIS), but they are also open to making other types of investments.
Adviser: Lane Financial Management (independent)
Address: 17 Pembroke Road, Old Portsmouth, Hampshire PO1 2NT
Speed of response: 11.20am. Given mobile number of adviser by receptionist. 4/5
Telephone manner: Professional and friendly. 5/5
Relevant qualifications: DipPFS. 5/5
Payment method: Transaction charge is 2 per cent while ongoing annual charge is 1 per cent per year. 5/5
Guidance: The adviser explained that people might want to invest in EIS because it can help reduce tax liabilities. He also explained to the shopper about how the process of inheritance tax works after somebody who is a widow also dies. But he cautioned the shopper that although EIS investments may return high yields, they are very high risk. Therefore, she should arrange a meeting with him so he can assess whether other investments would be more suitable. 5/5
Knowledgeable: The adviser sounded knowledgeable about the market, but came across as very negative about EIS investments. 4/5
Website: www.lane.fm
Email: carl@lane.fm 5/5
Verdict: The adviser was helpful and behaved in a professional manner.
33/35
Adviser: Sheraton Financial Planning (independent)
Address: Ground floor, Building 1000, Lakeside North Harbour Western Road, Portsmouth PO6 3EZ
Speed of response: 11.50am. Shopper transferred to adviser by receptionist. 5/5
Telephone manner: Professional and friendly. 5/5
Relevant qualifications: Chartered financial planner. 5/5
Payment method: Normal charge of 1 per cent on implementation of investment and ongoing charge of 0.75 per cent on first £500,000. 5/5
Guidance: The adviser explained his investment approach would be to put together a suitable financial plan, after finding out more about the shopper’s circumstances. He suggested the best starting point would be to reduce debt first, top up their retirement pot, before looking at other investments. The adviser also explained that EIS investments are high risk and not all schemes are protected by the Financial Services Compensation Scheme. 5/5
Knowledgeable: The adviser sounded very knowledgeable. The shopper also liked the fact he asked about her circumstances. 5/5
Website: www.sheratonfp.co.uk
Email: jason@sheratonfp.co.uk 5/5
Verdict: Shopper's choice – the adviser was professional and very helpful in his manner and approach.
35/35
Adviser: Independent Financial Solutions (independent)
Address: 23 Brookside Road, Old Bedhampton, Hampshire PO9 3JL
Speed of response: 12.10pm. Call answered by adviser. 5/5
Telephone manner: Professional and friendly. 5/5
Relevant qualifications: DipPFS. 5/5
Payment method: Depends on conversation, but typically fee is 2 per cent on first £75,000 and 1 per cent thereafter. 5/5
Guidance: The adviser compared a new investor putting their money into EIS with learning to drive in a Formula One car, before getting used to a normal car. He advised the shopper that the best approach would be to start by reducing any debt she has, before looking to make any investments. 5/5
Knowledgeable: The adviser was helpful, but he referred the shopper to another adviser to talk to her about EIS investment, even though she had said she wanted to look at other options. 4/5
Website: www.i-finsols.co.uk
Email: advice@i-finsols.co.uk 5/5
Verdict: The adviser was friendly and helpful, but the shopper felt he was a bit distracted as he was trying to refer her to another adviser.
34/35
Adviser: Danamere (independent)
Address: International House, Hampshire PO9 1EE
Speed of response: 12.40pm. Shopper transferred to adviser. 5/5
Telephone manner: Professional and friendly. 5/5
Relevant qualifications: DipPFS. 5/5
Payment method: Daily rate of £1000. 5/5
Guidance: The adviser said he preferred to arrange a face-to-face meeting, and requested for the shopper to come in and meet with him so that he can assess her needs better. He added that EIS can be tax-efficient, but investments are high risk. 4/5
Knowledgeable: The adviser was friendly but the shopper would have liked to have been given more information over the phone. 4/5
Website: www.danamere.com
Email: peter.field@danamere.com 5/5
Verdict: The shopper felt the adviser could have given her a bit more detail.
33/35
