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 Reading. She is calling on behalf of her father, a 64-year old who has £150,000 in his defined contribution pension pot. He wants to use his savings for something that provides a guaranteed income for life, but ideally also the flexibility to withdraw a lump sum as and when he sees fit.
Adviser: Moorland Mayfair Wealth Manager (independent)
Address: 450 Brook Drive, Green Park, Reading RG2 6UU
Speed of response: 11.23am. One ring and put through to adviser. 5/5
Telephone manner: Professional and friendly. 5/5
Relevant qualifications: Diploma in financial planning and pensions transfer qualification. 5/5
Payment method: For implementation there is a typical fee of £750. 5/5
Guidance: The adviser suggested her father opt for the hybrid income option, which offers the guaranteed income and the flexibility of the lump sum, known as income drawdown. 5/5
Knowledge: The adviser sounded knowledgeable but the shopper had to ask too many questions to get the overview she wanted, also clarifications. Also, too little plain English was used. 4/5
Website: www.moorlandmayfair.com
Email: kyle.jones@moorlandmayfair.com 5/5
Verdict: The adviser sounded knowledgeable about the hybrid income options, but the shopper felt she had to prompt him a number of times to get a clearer understanding using jargon free language.
34/35
Adviser: Asset Financial Services, trading as Sage Roxborough (independent)
Address: Chiltern Chambers, St Peters Avenue, Reading, Berkshire RG4 7DH
Speed of response: 11.30am. One ring and transferred to an adviser. 5/5
Telephone manner: Professional and friendly. 5/5
Relevant qualifications: A chartered financial planner and fellow of the CII. 5/5
Payment method: A charge of £1,500 for initial advice, as well as a potential 1 per cent yearly ongoing service fee, which is only relevant with the drawdown route. 5/5
Guidance: The adviser explained that two routes were broadly available, either an annuity or an income drawdown. He could take a lump sum with the annuity but that would have to come at the start. The downside to income drawdown is that income is not guaranteed for life. Funds are invested and if her father took out more than he was returned he may run out of savings. He can do both, using a hybrid income option, but this involves a complex process. 5/5
Knowledge: The adviser was knowledgeable and gave the shopper a detailed breakdown of the downside and upside to the various options. 5/5
Website: www.sageroxborough.com
Email: tim@sageroxborough.com 5/5
Verdict Shopper’s Choice. The adviser spoke with a lot of knowledge and authority about the choices available for her father at the point of retirement.
35/35
Adviser: Tilney (restricted)
Address: Advantage House, 87 Castle Street, Berkshire, Reading RG1 7SN
Speed of response: 11.54am. One ring and put through to a new business executive. 4/5
Telephone manner: Professional and friendly. 5/5
Relevant qualifications: Not a qualified adviser. 1/5
Payment method: The new business executive said the pensions specialist would be able to provide a full breakdown on fees. 1/5
Guidance: The executive was unable to provide any information, even on a guidance basis. The process would be to take the shopper's details and get a pensions specialist to contact her. When the shopper asked for an explanation whether the business was restricted or independent, he said they were not independent, but could not explain clearly if the company was restricted or not. 1/5
Knowledge: The shopper was unable to ascertain much as the new business executive said he could not give her any pensions information. 1/5
Website: www.tilney.co.uk
Email: jack.gill@tilney.co.uk 5/5
Verdict: The new business executive was polite and friendly but the shopper was left clueless about what the company had to offer her father.
20/35
Adviser: 1825 Financial Planning (restricted)
Address: 8 Waltham Court, Milley Lane, Hare Hatch, Reading RG10 9AA
Speed of response: 12.14pm. One ring and put through to adviser. 5/5
Telephone manner: Professional and friendly. 5/5
Relevant qualifications: A chartered financial planner. 5/5
Payment method: Based on the level of complexity the advice fee could be about £2,300. There is also the possibility of an ongoing fee of £2,000 per year, depending on how relevant it is for her father. 4/5
Guidance: The adviser explained the drawbacks and advantages of taking out the guaranteed option or lump sum. But he told the shopper that as her father is allowed to pull out 25 per cent tax free from the pension pot he has, it might not be worth splitting the remaining amount into guaranteed income and a flexible drawdown, as he may not have enough left to live on. 5/5
Knowledge: The adviser provided the shopper with a lot of detail about the options available. He also explained clearly that as a restricted business they had a panel of companies to choose from instead of using the whole market. He also explained the preferred option is Standard Life but if the product does not fit the client then they would look elsewhere. 5/5
Website: www.1825.com
Email: james.corcoran@1825.com 5/5
Verdict: The shopper felt the adviser was professional in his manner and helpful in his explanations.
34/35
