Mystery Shopper: Birmingham

The shopper’s mother wants to retire to Spain. She is retiring from nursing and has a final salary pension.

She has no relatives or links to Spain but has holidayed before and likes the climate. She would be doing this after the UK leaves the EU. How will this affect her pension and access to it?

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: Mazars Financial Planning (Independent)

Address: 45 Church Street, Birmingham, B3 2RT

Speed of response: At 10am the shopper was connected after a little wait. 5/5

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

Relevant qualifications: Level four Dip PFS. 5/5

Payment method: The shopper was told a fixed fee would apply, but it would be difficult to quantify without knowing more details about the mother. 4/5

Guidance: The biggest question is how her UK income would be treated in Spain. So looking ahead, it would be important to examine the tax treaty between Spain and the UK, and the mother will have to decide whether she is moving to Spain permanently or if she plans to come back, because that will affect her tax status. 5/5

Knowledge: The adviser explained that, as a final salary income is fixed and guaranteed for life, it might be a good scheme to keep. The adviser also explained the mother would still be entitled to a state pension, but that the increase would depend on the tax treaty between the UK and Spain. She asked whether the mother had considered if she will be able to live off her pension alone and that this was something they could discuss and find out. As the cost of living in Spain in the future is still unknown, it would be a good idea to understand how much flexibility the mother has, first. 5/5

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

Email: laura.firthfield@mazars.co.uk 5/5

Verdict: The adviser showed good knowledge of the different variables that would affect the shopper’s mother and the crucial factors she must consider if she decides to go ahead with the move. She was friendly and professional and clearly willing to help, but could not give a range of the cost without more details.

34/35

Adviser: 2plan wealth management (Independent)

Address: 12-22 Newhall St, Birmingham B3 3AS

Speed of response: At 10:15am the adviser answered the phone within seconds. 5/5

Telephone manner: The adviser was very professional. 5/5

Relevant qualifications: Level four Dip PFS. 5/5

Payment method: The adviser said the business offered a menu of payment options: an hourly rate, a fixed charge, or a percentage of the amount to be moved and/or invested. He suggested a fixed charge, in this instance, may be the most cost-effective option, but he did not give a range. 3/5

Guidance: The adviser said any decision would very much depend on whether the mother was planning to rent or take out a mortgage in Spain, because any investments and/or mortgages would be substantial factors in any financial planning. He outlined what an initial consultation would look like; it would be crucial to find the facts, mother’s objectives and needs, and the options available in a face-to-face meeting. He also noted one option could be a transfer to a private pension or overseas pension scheme. He asked whether the mother was in good health because unless she had any health problems, it would probably be best to say within the scheme, but that he could not give such advice over the phone without knowing more details. 5/5

Knowledge: The adviser was very knowledgeable and admitted it was difficult at this point in time to know exactly what was going to happen in the future, but nevertheless it was possible to point the shopper and her mother in the right direction with what was known now, including advice on how best to take her pension; whether the mother decides to take her pension from the scheme, transfer to a personal pension scheme or a qualifying overseas scheme. But he noted that Brexit probably would not have too much of an impact, as a final salary pension scheme is guaranteed, so there are very few risks and they are good schemes to keep. Currency functions could, however, be a key factor to keep in mind. 5/5

Website: http://chrisrohman.2plan.com/

Email: chris.rohman@2plan.com 5/5

Verdict: The adviser was very knowledgeable and gave good guidance. He was honest about the remaining uncertainties relating to Britain’s departure from the EU, but adamant that the mother’s final salary scheme would be protected if she decided to keep it, aside from currency fluctuations, which would be an unavoidable factor. He could not give a range of the fees involved.

33/35

Adviser: Whateley Wealth Management (Independent)

Address: 3 Parsonage Drive, Cofton Hackett, West Midlands, Birmingham, B45 8AS

Speed of response: At 10:30am the shopper was connected quickly. 5/5

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

Relevant qualifications: Level four DipFA. 5/5

Payment method: Following a free face-to-face consultation, there would be a range of costs and charges dependent on the business; a 4 per cent charge of whatever the outcome; or an hourly rate. He said a range was difficult to give without knowing more details. 4/5

Guidance: The adviser specified he could only give brief, generic advice over the phone; that advisers can only quote on what was happening in the present and so it would be crucial to organise a face-to-face meeting with the shopper’s mother. He warned that the mother would not be able to move the scheme to Spain, but instead could access a lump sum from there or the UK. He suggested the mother collate her pension information and request an immediate retirement quote. He also asked whether she will be getting a mortgage, and noted currency fluctuations as a big factor to consider. 5/5

Knowledge: The adviser was knowledgeable about occupational schemes and the different options available to the mother, and warned that it is often best to stay within the scheme rather than transfer out of it. But aside from currency fluctuations, he did not believe Brexit would have a major impact on her ability to access her pension pot. 5/5

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

Email: john@whateleywm.co.uk 5/5

Verdict: The adviser gave a good description of the nuances of accessing a pension pot from abroad, but needed some prompting to give further details on the cost of advice.

34/35

Adviser: Southcote Financial (Restricted whole of market)  

Address: 30A The Green, Kings Norton, West Midlands, Birmingham, B38 8SD

Speed of response: At 9:30am the adviser answered the phone after one ring. 5/5

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

Relevant qualifications: Level four Dip FA, Cert PFS, Aw PETR – Award in Pension Transfers. 5/5

Payment method: The initial consultation is free, and depending on the situation, the shopper could choose a flat fee or hourly rate of £200, whichever one would work out the most cost-effective. He also offered to email examples of the company’s fee structures. 5/5

Guidance: The adviser said all of the shopper’s mother’s relevant information would first be gathered in a free consultation. While the tax implications of Brexit would definitely be an issue, despite the recent uncertainties, he said it was possible to run through the different options available now. However, if the shopper’s mother was looking to move abroad soon, it would be vital to first analyse whether it was financially viable and sustainable – regardless of Brexit – for her to do so. While Spain’s tax arrangements are an important consideration, as are currency fluctuations, he said any planning would also first depend on what kind of income she is seeking. 5/5

Knowledge: The adviser showed good knowledge of the issue and the impact of the uncertainties posed by Brexit on any present financial planning. He also went to some length to explain the difference between his business and independent financial advisers. 5/5

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

Email: enquiries@southcotefinancial.co.uk 5/5

Verdict: Shopper’s Choice: The adviser was very knowledgeable and extremely personable; he was willing to discuss the potential issues of Brexit while being honest about the need to know more about the mother’s financial situation and whether it was a good option in the first place, regardless of Brexit. He offered good guidance and gave a range of costs, and additionally explained his business’ structure. The shopper felt her mother would be in good hands, and would not hesitate to follow through to advice.

35/35