This week the mystery shopper visits Reading.
The shopper’s mother is due to retire abroad next year. She has a defined benefit pension but is considering transferring to a self-invested personal pension, to more easily access her savings. The shopper is concerned about the risks of transferring and wants to know what other at-retirement 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: Flying Colours (Independent)
Address: 20 Collis Street, Berkshire, Reading, RG2 0AE
Speed of response: 10:00am. The shopper was connected quickly to an adviser-client liaison. 5/5
Telephone manner: Polite and professional. 5/5
Qualifications: Not a qualified adviser. 3/5
Payment method: The shopper was told there would be no fee for an initial sit-down with the mother, but was not given a range or method of the final cost, which would depend on the decision following the consultation with a qualified adviser. 2/5
Guidance: The mother would have to provide her pension details, such as who the scheme was with and how much she had accrued, and any other assets in her name, in consultation with a qualified adviser. Prior to this, she would be emailed more information pertaining to the company and pensions in general, such as a fact sheet on DB transfers, a glossary of useful pensions terminology and past client testimonials. 4/5
Knowledge: The company's client liaison showed some understanding of the risks often associated with DB transfers, but was not able to give any more details over the phone as he said the client would need to speak with the qualified adviser. 3/5
Website: https://www.flyingcolourswealth.com/
Email: aperry@flyingcolourswealth.com 5/5
Verdict: The shopper was not connected to an adviser. Nevertheless, the liaison was helpful and keen to give the shopper as much detail as possible, and offered to email additional information. He was somewhat knowledgeable but understandably could not give any more details over the phone, such as a range of the cost involved.
Total score: 27/35
Adviser: Strabens Hall (Independent)
Address: Albert Street, Reading, Reading, RG1 1HE
Speed of response: 10:15am. The shopper was transferred to an adviser straight away. 5/5
Telephone manner: The adviser was polite and professional. 5/5
Qualifications: Dip PFS. 5/5
Payment Method: The adviser said the first meeting, where he will set out his proposal, services and costs once a clearer picture of the mother’s goals had been gained, would be free of charge. The adviser did not give a price range of the final cost or how costs would be calculated. 2/5
Guidance: The adviser asked the mother to complete a questionnaire about herself and her current scheme, and to send this over email along with her reasons for considering a transfer before the face-to-face consultation. He suggested to put down as much detail as possible and suggested that a lot of the time a transfer out of a final salary scheme might not be in the client’s best interest. The adviser also asked to be emailed a copy of the mother’s pension statement so as to understand what they are offering, and when the guarantee date runs out. 4/5
Knowledgeable: The adviser showed a sound understanding of the scenario and the complexities and risks involved in a transfer – either to another UK DC scheme, or a qualifying recognised overseas pension scheme, which was another option, but one that might require a specialist. He also warned of risks associated with currency exposure, and the possible impact of a no-deal Brexit. 5/5
Website: https://strabenshall.co.uk/
Email: john.moore@strabenshall.co.uk 5/5
Verdict: The adviser offered a very good description of what would be involved in the first consultation; demonstrating a fine knowledge of the different options available, and how the different decisions could impact the mother’s retirement outcome, but did not give a range of the cost involved.
Total score: 31/35
Adviser: Bluesky Chartered Financial Planners (Independent)
Address: 3 Chalfont Court, Chalfont Close, Lower Earley, Reading, Berkshire, RG6 5SY
Speed of response: 10:30am. The shopper was transferred to an adviser straight away. 5/5
Telephone manner: The adviser was chatty and polite. 5/5
Qualifications: FPFS. 5/5
Payment Method: The adviser explained there was no obligation to pay during the initial meeting, but a charge would then be incurred for a transfer value calculation – even if the client did not wish to proceed with the transfer. He did not give a price range or explain a cost breakdown. 2/5
Guidance: The adviser asked for more details, such as who the scheme was with, how much the mother had accrued, her age and where she planned to move, and what other assets she owned. He said the compliance surrounding DB transfers was "heavy duty", as was transferring to a Qrops. Therefore, he said the mother should "not set false expectations" and go in with "eyes wide open". He asked why the mother had suggested investing in a Sipp, and whether she would consider keeping a UK bank account after moving abroad. 5/5
Knowledgeable: The adviser was very knowledgeable and experienced in seeing transfer values from a lot of different schemes. He suggested the mother's scheme had one of the worst transfer values, and so a transfer might not be in her best interest. 5/5
Website: https://www.blueskyifas.co.uk/
Email: jeremyj@blueskyifas.co.uk 5/5
Verdict: The adviser was polite, friendly and evidently very knowledgeable, and did not hesitate to give his contact email. The shopper was comfortable talking with the adviser who spoke confidently to the mother’s circumstances, however he did not give an estimate of the cost of advice.
Total score: 32/35
Adviser: Time Financial Planning (Independent)
Address: Suite 1, Unit 6, 15 Headley Road, Woodley, Reading, RG5 4JB
Speed of response: 10:45am. The shopper was connected to an adviser straight away. 5/5
Telephone manner: Friendly and professional. 5/5
Relevant qualifications: Director DipPFS. 5/5
Payment method: The adviser said there would be no fee for the initial consultation, but that a fee would be charged for a TVC and suitability report – to build a better financial picture and deem whether it is in her interest – which was likely to cost around £1,500. 4/5
Guidance: The adviser said a consultation was necessary to gain an understanding of the mother’s financial situation, and that there were many benefits of staying in a final salary pension scheme despite a transfer value looking attractive, and so navigating the mother’s options with the help of an adviser was a good starting point. 5/5
Knowledgeable: The adviser showed a high level of knowledge on the assigned risk involved with transferring a large pot of money, and was prepared to go through the different options in detail. 5/5
Website: http://www.timefinancialplanning.co.uk/
Email: tim@tfp.limited 5/5
Verdict: The shopper felt at ease talking to the adviser, who was clearly very knowledgeable and honest about how much the client would likely have to pay for a TVC and suitability report, without being asked. Shopper's Choice.
Total: 34/35
