Mystery ShopperFeb 27 2019

Mystery Shopper: Bristol

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Mystery Shopper: Bristol

The shopper has received £50,000 as a graduation gift from her uncle. The shopper is risk-averse and wants to invest it in safe haven assets such as gold. The shopper is not sure how much physical gold to buy, whether to invest in gold futures or whether to invest in other safe haven assets instead.

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.

 

Adviser: Trigon Pensions (independent) 

Address: Trigon House, The Promenade, Clifton Down, Bristol, BS8 3NG 

Speed of response: At 11:33am the shopper was first connected to the switchboard after one ring, then had to wait around 45 seconds and then, after another ring, was transferred to an adviser. 5/5

Telephone manner: The adviser was friendly and polite. 5/5

Relevant qualifications: Level 4 Dip PFS. 5/5

Payment method: The adviser said the fees would depend on the exact situation. On investments of around £200,000 a flat fee would be charged and an ongoing management fee of £1,500 would apply. The adviser said those fees do not make sense for an investment as low as £50,000, so the prices would need to be reviewed. 4/5

Guidance: The adviser said Trigon Pensions was more about financial planning and objectives than an investment into a single asset class. He said the adviser would be better off approaching a company like Hargreaves Lansdown, but the shopper would have liked a bit more information. 4/5

Knowledge: The adviser appeared to have a good understanding of investing and fees and this is why he suggested the shopper go elsewhere. 3/5

Website: https://www.trigon.co.uk/

Email: paul.humphrey@trigon.co.uk. 5/5

Verdict: While the shopper would have appreciated a bit more general information on gold or other safe haven assets, the shopper was pleased with the adviser's transparency and suggestion to seek a more suitable and cheaper option. 

31/35

 

Adviser: Ovation Finance (independent)

Address: 18-21 Queen Square House, Queen Square, Bristol, BS1 4NH

Speed of response: At 11:18am the shopper was transferred after two rings to a receptionist and, after a short wait, directly to an adviser. 5/5

Telephone manner: The adviser is chirpy and patient. 5/5

Relevant qualifications: Level 6 chartered financial planner. 5/5

Payment method: The adviser said the initial meeting would be free of charge and that a fixed fee would be levied for setting something up. Thereafter, a 1 per cent ongoing management fee would apply. The adviser did not specify how much the fixed fee will be, but nonetheless gave good information about the pricing. 4/5

Guidance: The adviser said it was unlikely that the company would suggest the shopper invests all their money in one asset class. He said when purchasing gold you must invest with a longer-term mindset. He said investing in gold was only safe if there was a long enough time period involved. He said given the shopper’s risk-aversion, they would be better off investing in companies that have a potential for growth over a longer period than in investing primarily in gold. 5/5

Knowledge: The adviser demonstrated very good and balanced knowledge on when investing in gold makes sense and on other investment products that yield above-average returns with lower risk. 5/5

Website: http://www.ovationfinance.co.uk/

Email: tommorris@ovationfinance.co.uk. 5/5

Verdict: (Shopper’s choice) The shopper was told of the risks of being invested in gold and was warned not to “put all their eggs in one basket”. The adviser spoke about other investment opportunities that have the potential to deliver yield but at a low risk. 

34/35

 

Adviser: Blue Wealth (independent) 

Address: 3 Westbury Mews, Westbury-on-Trym, Bristol, BS9 3QA 

Speed of response: At 11:56am the shopper was transferred immediately to an adviser. 5/5

Telephone manner: The adviser was polite. 5/5

Relevant qualifications: Level 4 Dip PFS. 5/5

Payment method: The adviser said with an average client investment of £250,000, a fixed fee is normally charged. He added that a percentage-based fee may be levied as a percentage of the assets the company takes on. 3/5

Guidance: The adviser said the shopper should come for a face-to-face meeting before he can discuss anything. He said the first step would be to complete a risk assessment/questionnaire, so that the company can assess the shopper’s attitude to risk. The adviser said he would not generally recommend investing in gold as it gives no protection against inflation. 4/5

Knowledge: The adviser gave the shopper a good reason as to why she should not invest in gold, and appeared to follow a logical approach. 4/5

Website: http://bluewealth.co.uk/

Email: dan.britton@bluewealth.co.uk. 5/5

Verdict: The shopper wanted more guidance, but was pleased that the adviser highlighted a key risk of investing in gold. 

31/35

 

Adviser: Sovereign Independent Financial Advisers (independent)

Address: Unit 4, Thornbury Office Park, Midland Way, Thornbury, Bristol, BS35 2BS 

Speed of response: At 2:59pm the shopper was first transferred to the switchboard, asked a few questions, and then transferred after quite a few rings to the adviser. 3/5 

Telephone manner: The adviser was friendly, but slightly less so compared to other advisers. 4/5

Relevant qualifications: Level 4 Dip PFS. 5/5

Payment method: He said a minimum fixed fee of £1,497 would be charged for conducting an assessment of the shopper’s personal situation and potentially a 0.5 per cent fee after that. 5/5

Guidance: The adviser said that there was an argument to suggest that gold is not risk-averse and in fact poses a certain degree of volatility. It also cannot be as easily liquidated as stocks and shares, he said. 5/5

Knowledge: The adviser had a very good knowledge of financial planning and gold as an asset class. 5/5

Website: https://www.sovereign-ifa.co.uk/

Email: mah@sovereign-ifa.co.uk. 5/5

Verdict: While the adviser at Sovereign Independent Financial Advisers gave better reasons than some of the other advisers as to why investing in gold was not a great idea, he had to be prompted to provide those reasons. 

32/35