The shopper hopes to secure a responsible investment solution. She recently inherited £30,000 and would like to put the money to good use, ethically and as a source of long-term growth. She wants to know what the viable responsible investment solutions are and what other options are available.
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: Corporate Benefits Consulting (independent)
Address: 8 Sandyford Place, Glasgow, G3 7NB
Speed: At 10am the shopper was transferred to an adviser within seconds. 5/5
Telephone manner: Friendly and professional. 5/5
Qualifications: Dip PFS. 5/5
Payment method: The adviser said there would be zero cost for an initial meeting, where fees would be discussed in more detail. He added that one fee option is an hourly rate of £175. 5/5
Guidance: The adviser suggested they would need to review the shopper’s current pension arrangement, as transferring into another, more ethical one was an option, but so was investing through an Isa. He said it was important to establish the aim of the fund and the level of income the shopper requires first. He was reluctant to give more details over the phone. 4/5
Knowledge: The adviser explained the types of funds an Isa invests in, such as cash, government bonds and emerging economies, and that there are different types of screenings used by advisers for ethical/responsible funds. He also explained it is possible to tailor portfolios to the individual. He explained his firm has its own investment process and suggested options, but the solution will depend on what the client’s ethical views are. He added that as they are a fully independent firm, they are able to look through the whole market and at many different options. 4/5
Website: https://www.corporatebenefits.co.uk/
Email: ian@corporatebenefits.co.uk 5/5
Verdict: The adviser was friendly and professional, he explained what the process involved clearly, but was unable to give any real details without more information.
33/35
Adviser: Armstrong Watson Financial Planning & Wealth Management (independent)
Address: 1st Floor, 24 Blythswood Square, Glasgow, G2 4BG
Speed: At 10:30am the shopper was connected to an adviser within seconds. 5/5
Telephone manner: Friendly and professional. 5/5
Qualifications: Chartered financial planner with APFS. 5/5
Payment method: The adviser explained there was no initial cost, that the shopper could choose between an hourly rate of £200 an hour or a fixed fee depending on the situation. 5/5
Guidance: The adviser said an initial sit down would involve a 15-minute chat, where he would outline the business and how it operates, and discuss the situation and their approach in more detail. He did not give any more details about the specifics of responsible investment solutions, but said it was possible to blend investment portfolios to suit the specific needs of the client. 3/5
Knowledge: The adviser showed some knowledge of the situation and clarified how the business charged for advice. He explained what kind of documentation would be needed from the shopper and that any decision would largely depend on the shopper’s attitude, and capacity, for risk. But did not give elaborate any further. 3/5
Website: https://www.armstrongwatson.co.uk/
Email: bryce.niven@armstrongwatson.co.uk 5/5
Verdict: The adviser explained the payment method but was unable to give further details about the different types of funds and what they invest in, without knowing more about the shopper's situation and financial records.
31/35
Adviser: Aberdein Considine & Co (independent)
Address: 108 Byres Road, Glasgow, G12 8TB
Speed: The shopper left a message at 11:30am and an adviser called back later in the day at 5:30pm. 4/5
Telephone manner: Friendly and professional. 5/5
Qualifications: Chartered financial planner with APFS. 5/5
Payment method: Following an initial free consultation, there would be a £200 an hour fee. But depending on the situation, a fixed fee was also an option. 5/5
Guidance: The adviser would need to look over the shopper’s latest annual pension statements, and ask more questions about her finances and future goals, which would include an assessment of the shopper’s attitude towards risk. He suggested the shopper look at her current pensions arrangement, if she had a pension through her current employer, as there was likely to be an ethical solution on offer. He added that the screening for ethical funds in a pension ranged from light to stringent and that this was something they could look at together. 4/5
Knowledge: The adviser said the shopper could get ethical fund access through a pension or an Isa, or a mix of both. While a pension was more tax efficient than an Isa, the funds would be locked in until age 55, so splitting it between the two could be a good option. He explained that a standard personal pension usually already offers a pool of ethical funds. 4/5
Website: https://www.acandco.com/
Email: gcrozier@acandco.com 5/5
Verdict: The adviser called back as promised, and discussed the payment method and process for gathering information, and some of the factors that are key to ethical decision-making, such as risk appetite. He was reluctant to give more details over the phone.
32/35
Adviser: Fitzroy Wealth Management (independent)
Address: 17 Fitzroy Place, Glasgow, G3 7RW
Speed: At 11am the shopper was connected quickly. 5/5
Telephone manner: Friendly and professional. 5/5
Qualifications: Dip PFs. 5/5
Payment method: No fee for the initial consultation. Cost for advice was likely to be 3 per cent of the overall money invested, but that it would largely depend on the amount of time spent with the client. An ongoing fee of 1 per cent a year would apply. 5/5
Guidance: The adviser said it would be important to gather more information through a risk profile questionnaire, to establish the shopper’s income needs and desired outcomes. They could then look at whether it would be sustainable in the long term to invest the money in a pension – where it would not be accessible until age 55 – or to keep it at hand in an Isa. He said once they knew the terms of her medium to long-term outlook, they could then look at the different suitable investment funds available. He said the length of time of the investment was important, to let the assets grow over a period of time. 5/5
Knowledge: The adviser suggested considering a diversified portfolio because, in his opinion, ethical funds may not grow as quickly as those that invest in oil and gas. 4/5
Website: https://fitzroywm.co.uk/
Email: ryan@fitzroywm.co.uk 5/5
Verdict: Shopper’s choice: The adviser was clearly knowledgeable about pensions and investments, and was open to giving more details over the phone. The shopper wishes he had offered a more detailed explanation of why he believed ethical funds may not grow as fast as other funds that invest in fossil fuels.
34/35
