The shopper is deciding whether to take out income protection or critical illness cover. The shopper is 35 years old, a single parent earning £50,000 a year, and has a mortgage worth £400,000. The shopper has no other debt.
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: Thompson Cavendish Ltd (Independent)
Address: 3 Maze Road, Kew, Richmond, TW9 3DA
Speed of response: 11:00am. An adviser answered and picked up straight away. 5/5
Telephone manner: The adviser spoke quickly, clearly caught at a bad time, but continued to stay on the phone to speak to the shopper about the inquiry. 3/5
Qualifications: Director with DipPFS. 5/5
Payment method: The adviser said there would be no fees for the initial consultation, but did not suggest a range for further consultation, saying the cost would be a commission from the insurance, but did not explain further. 3/5
Guidance: The adviser described the main difference between the two policies, but said clients would need to describe the specific circumstances in more detail in a free face-to-face consultation. The adviser then suggested to make an appointment. 3/5
Knowledgeable: The adviser showed some knowledge of the suitable cover for this scenario, specifically the difference between income protection and critical illness cover, but was reluctant to give any more details over the phone. 2/5
Website: http://www.thompsoncavendishltd.com/
Email: nigel.thompson@thompsoncavendishltd.com 5/5
Verdict: The adviser was clearly in a hurry and away from the office but still took the call and was willing to help the shopper. He was unwilling to give any more details over the phone, suggesting a face-face-meeting would be necessary.
Total score: 26/35
Adviser: Stadden Forbes Wealth Management Ltd (Independent)
Address: 20 Windrush Close, Bolton Road, Chiswick, W4 3TQ
Speed of response: 10:00am. The shopper was transferred to an adviser straight away. 5/5
Telephone manner: The adviser was polite and professional. 5/5
Qualifications: Level 4 Dip PFS. 5/5
Payment Method: The adviser said there would be no fee for the initial 45 min face-to-face consultation, after which any cost would be a commission from the policy bought with the insurance company, or the option of an hourly based rate – whichever the client preferred, but did not specify a range. 4/5
Guidance: The adviser said the type of policy would depend on the shopper’s individual circumstances and budget. He said different types of cover were also available but that income protection was a good start, and possibly the most suitable if the shopper was mostly worried about the ability to pay bills. 5/5
Knowledgeable: The adviser gave a good account of the differences between income protection and critical illness cover, suggesting income protection was the more important one out of all the policies available. 3/5
Website: https://staddenforbes.com/
Email: aaron.hicks@staddenforbes.com 5/5
Verdict: The adviser offered a solid description of what would be involved in the first consultation, and showed good knowledge of the different types of cover and policies available, and how long a policy would take to pay out, but did not give a range of the cost.
Total score: 32/35
Adviser: P K Financial Planning L L P (Independent)
Address: 1 Parkshot, Richmond, Surrey, TW9 2RD
Speed of response: 10:30am. The shopper was transferred to an adviser straight away. 5/5
Telephone manner: The adviser was extremely polite and friendly. 5/5
Relevant: Qualifications: Certs CII (MP & ER). 5/5
Payment Method: The adviser explained there was no obligation to pay during the initial meeting, call or online correspondence. If the client wished to get advice, a range would be discussed after having considered all the policy options, the shopper’s circumstances and budget. 4/5
Guidance. The adviser described in detail the process involved in advice, and set out a number of steps including a questionnaire used to gauge the shopper’s circumstances in more detail, to know what level of cover would be most suitable and necessary for the shopper’s budget. The process would involve both online and face-to-face consultation, or whatever the shopper wished. 5/5
Knowledgeable: The adviser showed a sound understanding of the different types of policies and explained the suitability of critical illness cover and life cover in detail, and acknowledged the shopper was probably better off starting with income protection. He suggested it would be a good idea to check what was covered by the shopper’s employer first, because some employers do offer similar health benefits and it would be best not to double up. 4/5
Website: https://www.pkgroup.co.uk/
Email: jonathan.birkett@pkgroup.co.uk 5/5
Verdict: The adviser was polite, friendly and knowledgeable, and did not hesitate to give his contact email and number. The shopper was comfortable talking with the adviser who spoke confidently and listened attentively to the shopper’s concerns, but he did not give a range for the cost of advice.
Total score: 33/35
Adviser: Need An Adviser.Com (Independent)
Address: Gainsborough House, Sheen Road, Richmond, Surrey, TW9 1AE
Speed of response: 9:00am. The shopper had to schedule a call with an adviser the next business day at 9am. 4/5
Telephone manner: Friendly and professional. 5/5
Relevant qualifications: Chartered financial planner ACII FPFS. 5/5
Payment method: The adviser said he does not take commission, instead the shopper would pay either a non face-to-face fee or face-to-face fee, either up front or on completion of the policy, and gave a range from £750 to £1400 – depending on which payment was selected, as well as the health of the prospective client. 5/5
Guidance: The adviser offered to email a breakdown of fees and brochures with some guidance and background on the firm. The adviser added that if the shopper was planning on holding the policy long-term, paying a fee works out cheaper than a commission based fee, but that if the shopper cannot afford the upfront fee and is only after a short term policy (for a couple of years), the shopper might be better off going to a commission based adviser instead.
He also explained that the policy cover would depend on the shopper’s budget, health, and selected deferral period – explaining that a longer deferred period would be cheaper, but also explained the risks. He also recommended the shopper first check what cover or benefits are supplied by the shopper’s current employer before making a decision. 5/5
Knowledgeable: The adviser showed a high level of understanding of the difference between the two policies and was willing to go into more detail. 5/5
Website: https://www.financialadvice.net/
Email: ashley@financialadvice.net 5/5
Verdict: Shopper's Choice: The shopper felt at ease talking to the adviser, who was knowledgeable and offered to send a detailed breakdown of fees and was honest about whether it would be beneficial for the client to seek commission based advice instead if unable to pay the upfront fee.
Total: 34/35
