This week the shopper visits Brighton.
The shopper has been out of work and wants to know how divorce will impact her defined contribution pension pot of £35,000; specifically, whether it is more tax-efficient for her husband to transfer some of his pension to her, voluntarily contribute to her pot out of their combined savings, or whether she should invest some of the savings in an Isa.
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: North Laine Financial Management (Independent)
Address: West Wing, 47 Old Steine, Brighton BN1 1NW
Speed: At 1pm a paraplanner answered the phone immediately. 5/5
Telephone manner: Friendly and professional. 5/5
Qualifications: Paraplanner, not an adviser. 4/5
Payment method: A minimum 1 per cent fee a year when dealing with assets in a pension, with a minimum pot of £100,000. He suggested it would not be cost-efficient to go ahead with advice as the cost would considerably eat into her savings. 5/5
Guidance: The shopper was told she would be advised by a qualified adviser. She was told to seek a solicitor's advice first, to determine a pension sharing order and any other required financial assessment. 4/5
Knowledge: He explained an adviser can help facilitate the transfer of assets following an order agreed in court and that it was best to deal with financial affairs after the divorce. He noted that a pension sharing order can take up to two years and even if the couple agreed to split assets amicably it must be approved in the courts first. 5/5
Website: https://www.nlfm.co.uk/
Email: The paraplanner offered the general enquiries email: mail@nlfm.co.uk 4/5
Verdict: The paraplanner was friendly and professional and wanted to give the shopper an honest explanation of the cost versus the service they offer. The shopper's overall pension and savings value did not qualify her for advice.
Score: 32/35
Adviser: Flying Colours (Independent)
Address: Telecom House, 125-135 Preston Road, Brighton BN1 6AF
Speed: The shopper was connected to a client liaison within seconds. 5/5
Telephone manner: Friendly and professional. 5/5
Qualifications: Client coordinator, did not specify qualification. 3/5
Payment method: Minimum cost is £1,000, a fee out of the overall pot value, which he said would not be very cost-effective for the shopper given her circumstances. 5/5
Guidance: The shopper was told that she would have to go through a client coordinator first before speaking to an adviser. There would be consultation with an adviser, either face-to-face or over the phone, who had access to the whole of the market. Following the advice, there would be an annual review. 3/5
Knowledge: He suggested that in order for the service to be worthwhile, a minimum wealth or minimum pensions pot value of £100,000 was required. The client coordinator was knowledgable about the structure of the company but could not give her any suggestions or advice over the phone. 2/5
Website: https://flyingcolourswealth.com
Email: smurphy@flyingcoloursife.com 5/5
Verdict: The shopper would have liked more guidance on the phone and to have been able to discuss the situation more in-depth with an adviser first.
Score: 28/35
Adviser: Sandringham Financial Partners (Independent)
Address: 69 Havelock Road, Brighton BN1 6GL
Speed: Shopper had to leave a call back request at midday and an adviser called back the next business day. 3/5
Telephone manner: Friendly and polite. 5/5
Qualifications: Level 4 Dip PFS. 5/5
Payment method: The adviser suggested there would be an initial free consultation to determine whether advice would benefit both parties; the cost could then be discussed. Minimum pension pot for advice was £50,000, but the adviser said it would depend on the situation. 4/5
Guidance: While the adviser said he was not able to give advice over the phone, he suggested that because the limit to contribute to a pension as a non-worker was £3,600 a year, it would likely be in her best interest to share her husband’s through a pension sharing order. The adviser said he would be happy to offer more specific advice once she had sorted the divorce, and to get in touch if she had any more questions. 5/5
Knowledge: The adviser was very knowledgeable. 5/5
Website: http://www.sandringham.co.uk/
Email: p.stow@sandringham.co.uk 5/5
Verdict: The adviser was clearly knowledgeable and willing to help the shopper plan for retirement in the future, but could not give many details over the phone or until she had completed the divorce.
Score: 32/35
Adviser: McCreath Financial Partners (Independent)
Address: Link House, Link Place, Brighton BN1 7DU
Speed: The shopper left her number at midday and at 5pm an adviser called back. 4/5
Telephone manner: Extremely personable and friendly. 5/5
Qualifications: Dip PFS. 5/5
Payment method: The shopper was told she could come in for a free consultation about her pension, investing assets through an Isa or setting up life insurance after the divorce, at any time. He did not feel comfortable charging for advice at present as circumstances could change after the divorce was settled. If she had any more specific queries, he said he could steer her in the right direction free of charge. 4/5
Guidance: Given her circumstance, he said there was no real benefit to squirrelling things away in a pension, and that the maximum she could contribute to a pension in any given year was capped at £3,600. He added that she could look into a fixed price divorce rather than an hourly rate, if the split was amicable, and that the legal process is important as she may ultimately decide a pension sharing order is within her best interest. 5/5
Knowledge: He suggested an Isa provided flexibility, and while a pension guaranteed some tax relief it would mean she would not have access to savings she may need, and so an Isa was the better option if she wanted to put money away for the future and make up for not having been able to save much into her pot over the past few years. 5/5
Website: https://www.mfpartners.co.uk/
Email: james@mfsparnet.co.uk
Verdict: Shopper's Choice. The adviser was extremely friendly and the shopper felt comfortable speaking with him. He was honest about not being able to give the shopper much guidance until after the divorce, but the shopper would not hesitate to get in touch with him again.
Score: 33/35
