The shopper is joint owner of a property with her husband who has now passed away. He did not have any will and it is unclear whether the shopper will be getting a £320,000 death-in-service payout. The shopper is exploring how to pass on the property – worth £400,000 – to her son without him having to pay 40 per cent inheritance tax.
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: MLP Wealth Management (independent)
Address: 17 Station Rd, Sutton, SM2 6BX
Speed of response: 2:23pm. The shopper is transferred to the switchboard after two rings, and after one ring to a financial adviser. 4/5
Telephone manner: The adviser was polite and patient. 5/5
Relevant qualifications: Level 4 Dip PFS. 5/5
Payment method: The adviser said he wanted the shopper to think about her options before discussing pricing. After being prompted, he said prices depend on what services the shopper ends up getting, and said generally a 3 per cent fee is levied for up to £100,000 invested. 3/5
Guidance: The adviser asked the shopper several questions to understand her position, such as her salary, whether she is due any death-in-service payment, whether her husband wrote a will, her financial position, assets and pension benefits. He asked the shopper to check whether she had a tenancy in common or a joint tenancy when she bought the property. He said she could transfer the property to her son once the house comes to her estate. 4/5
Knowledge: The adviser demonstrated a thorough knowledge of IHT rules and probate fees. 5/5
Website: https://mlpwealth.co.uk/
Email: paolo@mlpwealth.co.uk 5/5
Verdict: The adviser was helpful and asked great questions that could help the shopper make the most informed decision.
31/35
Adviser: Keith M Jobson (Julian Harris Financial Consultants network)
Address: Julian Harris House, Musgrove, Ashford, TN23 7UN
Speed of response: 3:10pm. The shopper is transferred to a receptionist after one ring and to a financial adviser after four rings. 4/5
Telephone manner: The adviser was compassionate and polite. 5/5
Relevant qualifications: Level 4 Dip PFS. 5/5
Payment method: The adviser said the level of fees depends on whether the company's services are required on a more 'ad hoc' basis, or on a more regular basis. He said an hourly rate of £175 would be charged, or a 3 per cent fee for investments up to £50,000, and a 2.5 per cent fee if an investment of £100,000 is made. 5/5
Guidance: The adviser completed a “know-your-client” assessment over the phone with the shopper. He asked questions relating to her marriage status, salary, assets and death-in-service payments. He went into exceptional detail about the nil rate band and calculated the estate value to be £800,000 – assuming the shopper gets a death-in-service settlement for her husband’s death of £320,000 and other assets the shopper has. He said the NRB means both husband and wife are allowed £325,000 tax-free, and a residential NRB of £125,000 bringing the total NRB to £775,000. He said “practically no IHT will be levied," only on the difference between the two figures, in this case £25,000. 5/5
Knowledge: The adviser was extremely knowledgeable and demonstrated a sound understanding of various calculations and conditions under which IHT rules apply. 5/5
Website: https://www.julianharris.net/ 5/5
Email: keith.jobson_ifa@yahoo.com. The adviser said this was his corporate email, as he belongs to a network of independent financial advisers. 5/5
Verdict: This adviser was extremely helpful, polite and considerate to the shopper’s difficult circumstances and took an exceptional effort to have a long conversation and provide the shopper with additional information (shopper’s choice).
34/35
Adviser: HSC Financial Advisers (independent)
Address: 94-96 Merton High St, London SW19 1BD
Speed of response: 10:50am. The shopper is connected after two rings to a receptionist and after three things to a financial adviser. 4/5
Telephone manner: The adviser seemed less engaged compared to the other advisers. 2/5
Relevant qualifications: Level 4 Dip PFS. 5/5
Payment method: The adviser said the company will charge £150 for the initial consultation. After that a fee within the range of 1-3 per cent will be charged, but this depends on the exact nature of the work. The adviser was vague on the investment thresholds to which the percentages apply. 4/5
Guidance: The adviser said he does not discuss probate fees, and said the shopper will need to get legal assistance before the company can advise the shopper. 2/5
Knowledge: The adviser said he did not have a high level of knowledge about probate, but had more knowledge related to using IHT as a wealth planning tool. 2/5
Website: https://www.hscoleman.co.uk/
Email: hsc@hscom.co.uk. The shopper was told that this is the email address advisers use, but the shopper would have still wanted the individual email address of the adviser. 3/5
Verdict: The shopper wanted more information on, say, the NRB and IHT especially as the cost of the first consultation will be borne by the shopper.
22/35
Adviser: Zest Financial Consultants (independent)
Address: 608 Kingston Road, Raynes Park, London, SW20 8DN
Speed of response: 10.23am. The shopper is transferred to an adviser. 4/5
Telephone manner: The adviser was polite but not overly friendly compared to others. 4/5
Relevant qualifications: Level 4 Dip PFS. 5/5
Payment method: The adviser said the cost is assessed on a case-by-case basis, but typically an hourly rate of £160 is charged plus VAT. 4/5
Guidance: The adviser asked whether the property was jointly owned and urged the shopper to consult a solicitor first to see whether the house would automatically be transferred to her, and whether the eventual transfer to her son would be free of any IHT liabilities. 3/5
Knowledge: The adviser appeared to have limited knowledge on this area. 3/5
Website: http://www.zestfinancialconsultants.co.uk/
Email: zest@thinkpositive.com. The adviser gave the corporate email address, not his individual one. 3/5
Verdict: The shopper liked the fact that the adviser was urging her to get some legal assistance as well, but would have still liked more general information on IHT, even if the adviser would not give advice over the phone.
26/35
