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 Surrey.
The shopper has been self-employed for six years and is looking at whether she should set up a personal pension, self-invested personal pension or Lifetime Isa.
She would like to put in an initial amount of £5,000 into her pension then top it up with £500 every month.
Adviser: Grayside Financial Services (independent)
Address: 1st floor, 55 High Street, Epsom, Surrey KT19 8DH
Speed of response: 2.10pm. Transferred to adviser after call with receptionist. 5/5
Telephone manner: Friendly. 5/5
Relevant qualifications: DipPFS. 5/5
Payment method: The amount would depend on amount being invested but typically fee is no more than £1500. 5/5
Guidance: The adviser explained the differences between a Lifetime Isa, a Sipp and a personal pension. He explained that the personal pension is a type of savings plan, from which she will only be able to access the invested funds from age 55. One of the benefits of the personal pension is she would also get 20 per cent tax relief, while a Sipp typically involves putting your money into building investments. Although the adviser said she could access her Lifetime Isa at any time after checking this she found the age to access it was 60. 4/5
Knowledgeable: The adviser sounded very knowledgeable about personal pensions, although he did not give not give the shopper as much detail when speaking to her about Sipps. 4/5
Website: www.grayside.co.uk
Email: r.clatworthy@grayside.co.uk 5/5
Verdict: Shopper’s Choice. The adviser was very helpful and friendly and behaved in a professional manner.
33/35
Adviser: Fish Financial (independent)
Address: Gostrey House, Union Road, Farnham, Surrey GU9 7PT
Speed of response: 2.38pm. One ring and transferred to adviser. 5/5
Telephone manner: Friendly. 5/5
Relevant qualifications: DipPFS. 5/5
Payment method: Typically there is a 1 per cent initial fee followed by an ongoing fee of 1 per cent per year. 5/5
Guidance: The adviser explained that personal pensions are more tax favourable but you can only start accessing the money from the age of 55. He also said that there was no real difference between the personal pension and a Sipp, although the Sipp is more flexible. The Isa provides tax free growth and is accessible at any time. 4/5
Knowledgeable: The adviser sounded quite knowledgeable but the shopper felt he could have gone into a bit more detail. Although the adviser said she could access her Lifetime Isa at any time after checking this she found the age to access it was 60. 3/5
Website: www.fishfin.co.uk
Email: icolley@fishfin.co.uk 5/5
Verdict: The adviser behaved in a fairly professional manner, but the shopper would have also liked a bit more information.
32/35
Adviser: Mitchell & Company (independent)
Address: Priory House, 45-51a High Street, Reigate, Surrey RH2 9AE
Speed of response: 2.53pm. Call transferred to adviser after one ring. 5/5
Telephone manner: Polite, but somewhat abrupt. 4/5
Relevant qualifications: DipPFS. 5/5
Payment method: £1200 to set up pension. 5/5
Guidance: The adviser explained that if the shopper wanted to start with an initial investment of £5000, the cost to her could be well over £1000, so it might be better for her to just go online and look for a stakeholder pension. He also told the shopper one of the best options would be for her to pick a global equity type fund and then nearer the time she wants to access the funds, look to derisk. 4/5
Knowledgeable: The adviser sounded quite knowledgeable, but the shopper found it difficult to understand terms such as stakeholder pension or global equity fund and he did not explain it clearly to her, despite her asking for an explanation. Also, she felt he could have given her some pointers on how to go about searching for a stakeholder pension online. 3/5
Website: www.mitchellcompany.co.uk
Email: ian.bailey@mitchellcompany.co.uk 5/5
Verdict: The adviser was polite but he did not give her much more information beyond telling her to go online herself and he also did not explain things in a simple way she could understand.
31/35
Adviser: Platinum Financial Planning & IFA (independent)
Address: Suite 3 / Grapes House, 79a High Street, Esher KT10 9QA
Speed of response: 3pm. Call answered by adviser after call transferred by receptionist. 5/5
Telephone manner: Friendly. 5/5
Relevant qualifications: DipPFS. 5/5
Payment method: The adviser said the fee would depend on discussion, but promised his fee would be competitive. 3/5
Guidance: After the adviser found out shopper was higher rate taxpayer and that she was registered with a limited company, he told her that she could make the pension contributions out of the company account, which would mean the company was entitled to corporate tax relief. Adviser also said that she would not be able to put in money into Lifetime Isa after the age of 45. 4/5
Knowledgeable: The adviser sounded fairly knowledgeable and the shopper felt he made some good points about using the company to make the pension contribution. Although adviser said shopper would not be able to put money into the Lifetime Isa after 45 she actually found out afterwards the age is 50. 3/5
Website: www.platinum-ifa.co.uk
Email: dennis@platinum-ifa.co.uk 5/5
Verdict: The adviser tried to be helpful but the shopper did not feel he spoke in a lot of detail.
30/35
