Each week the mystery shopper seeks advice from independent and tied 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.
This week the shopper visits Preston. He is self-employed and does not have a pension plan. He is seeking advice on whether saving into a traditional personal pension scheme trumps the merits of the Lifetime Isa. The shopper currently rents a property.
Adviser (Independent):
M.R. Financial Services Ltd
316 Blackpool Road, Fulwood, Preston, Lancashire PR2 3AE
Speed of response: Time of call: 11.54am. The call was answered after one ring. 5/5
Telephone manner: Professional and very easy to speak to. 5/5
Relevant qualifications: Level four diploma. 5/5
Payment method: Varies – on case-by-case basis. A 1 per cent charge for ongoing advice for investments within pensions. 5/5
Guidance given:
The adviser explained the Lisa is designed to help individuals get onto the property ladder and/or incentivise them to save for retirement. He said he advocates pensions if the shopper’s sole aim is to save for retirement because, by and large, individuals are not allowed to make any withdrawals until they reach retirement age. 4/5
Knowledge: Very good. The adviser correctly flagged the Lisa is due to be introduced in spring 2017. 4/5
Email/web presence: mattwright@mrfinancialservice.co.uk
www.mcdaderoberts.co.uk 5/5
Verdict:
The adviser displayed a solid understanding of the upcoming Lisa and provided the shopper with useful guidance.
33/35
Arena Investment Management Ltd
71 Liverpool Old Road, Walmer Bridge, Preston PR4 5QE
Speed of response:
Time of call: 12.07pm. The call was answered after two rings. 5/5
Telephone manner:
Polite and friendly. 5/5
Relevant qualifications:
Level four diploma. 5/5
Payment method:
The adviser said costs would be discussed at an initial meeting. 5/5
Guidance given:
The Lisa offers the same tax relief for basic-rate taxpayers as a traditional pension, the adviser said. One of the caveats is that the annual Lisa contribution limit is £4,000 – significantly less that the £40,000 for pensions, he added. The adviser offered to arrange a free initial meeting to discuss the shopper’s circumstances in greater depth. 4/5
Knowledge:
The adviser displayed a good knowledge of pensions and the Lisa. 5/5
Email/web presence:
dp@aimv.co.uk; www.ainv.co.uk 5/5
Verdict:
The adviser adopted a notably friendly approach to the conversation, which helped to put the shopper at ease. The shopper was satisfied with the guidance given.
34/35
Adviser (Restricted):
True Potential Wealth Management (Jonathan Darwen)
Unit 5, (Regus) Albert Edward House, The Pavillions, Ashton, Preston PR2 2YB
Speed of response: Time of call: 12.18am. The call was answered after one ring. 5/5
Telephone manner: Polite and friendly. 5/5
Relevant qualifications: Level four diploma. 5/5
Payment method: The adviser said costs would be discussed at an initial meeting. 5/5
Guidance given:
The adviser answered the phone call while in transit, but was keen to get an insight into the shopper’s circumstances. He said that there are merits to both investment vehicles, adding that the best course of action would be to arrange an initial meeting at no cost to the shopper. 3/5
Knowledge:
Difficult to gauge based on the guidance offered. 2/5
Email/web presence:
jonathandarwin@tpllp.com
jonathandarwen.tpllp.com
5/5
Verdict:
The adviser should be commended for his willingness to speak with the shopper despite being in transit, but he offered little in terms of guidance.
30/35
Provider:
Cavendish Online
Speed of response: Time of call: 12.24pm. The call was answered after one ring. 5/5
Telephone manner: Friendly and professional. 5/5
Relevant qualifications: The representative said he was not qualified to offer advice. 0/5
Payment method:
One-off set up fee of £35 and annual fee of 0.30 per cent for personal pension. 5/5
Guidance given:
The representative said the firm did not offer financial advice on pension products. He also directed the shopper to the company website for comprehensive details on its pension offerings. 2/5
Knowledge:
Difficult to gauge based on the guidance given. 1/5
Email/web presence:
www.cavendishonline.co.uk/pensions/personal-pensions 3/5
Verdict:
No frills, but the adviser was forthcoming about not being qualified to give advice.
21/35
