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 Croydon. He has inherited £40,000 and is seeking advice on whether to save the sum, invest it, or use it to pay off some of his mortgage. He has £6,000 in savings, earns £30,000 a year and has a £140,000 mortgage.
Adviser (Independent):
Argentis Financial Management Limited
28 Dingwall Road, Croydon, Surrey, CR0 2NH
Speed of response:
Time of call: 2.50pm. Answered after two rings. 5/5
Telephone manner:
Polite and informative. 5/5
Relevant qualifications:
Level four diploma. 5/5
Payment method:
Payment would be discussed at an initial meeting the adviser said. 4/5
Guidance given:
The adviser kicked off the conversation by asking the shopper the size of his mortgage, and whether he has savings. He explored the importance of contingency capital to provide a cushion against unforeseen circumstances. The adviser said the suitability of investing in stocks and shares is dependent on attitude to risk. The adviser suggested arranging an initial meet up to further explore the shopper’s circumstances. 4/5
Knowledge:
The adviser showed a broad knowledge of investments in particular. 4/5
Email/web presence:
philipmulready@argentisfm.co.uk
www.argentisfm.co.uk 5/5
Verdict:
Very good. The adviser provided a good overview of the shopper’s main considerations.
32/35
Adviser (Independent):
2 Plan (Trevor Middleton)
5 Birdwood Close, Selsdon, Surrey, CR2 8QJ
Speed of response:
Time of call: 2.59pm. Answered after four rings. 4/5
Telephone manner:
Somewhat curt. 2/5
Relevant qualifications:
Level four diploma. 5/5
Payment method:
Payment would be discussed during an initial meeting the adviser said. 4/5
Guidance given:
The first port of call is to arrange an initial meeting to delve into the shopper’s circumstances, the adviser said. After being prompted to offer more guidance, the adviser reiterated that an initial meeting would be required, to establish whether his current mortgage deal is subject to early repayment charges. 3/5
Knowledge:
The little snippet of guidance offered by the adviser suggested he is well versed in mortgages. 2/5
Email/web presence:
trevor.middleton@2plan.com
trevormiddleton.2plan.com 5/5
Verdict:
The conversation was extremely brief, lasting no longer than two minutes so, predictably, the guidance offered was skeletal.
25/35
Adviser (Independent):
Holden & Partners LLP
Mitchley Avenue, Purley, Surrey, CR8 1DT
Speed of response:
Time of call: 3.03pm. Answered after one ring. 5/5
Telephone manner:
Very friendly. 5/5
Relevant qualifications:
Chartered Financial Adviser. 5/5
Payment method:
Minimum fee of £750 and VAT and one per cent charge of invested amount. 5/5
Guidance given:
The adviser asked the shopper whether he had regular and pension savings, the value of his mortgage and if he would need access to funds in the short term. On the latter, she explained that it is good to have a substantial cash reserve for unexpected situations. The adviser said the shopper could put the sum into a stocks and shares Isa, which is subject to investment risk. 4/5
Knowledge:
Excellent. The adviser accurately quoted the Isa allowance for the current tax and displayed solid knowledge on all key considerations. 4/5
Email/web presence:
srogers@holden-partner.co.uk
www.holden-partners.co.uk 5/5
Verdict:
Superb. The adviser explained that due to firm’s charging model it would not be economical for the shopper to employ her services, but happily provided some helpful guidance.
33/35
Provider:
Skipton Building Society
Speed of response:
Time of call: 3.15pm. Answered by an automated system. The shopper was transferred to a representative after 1 minute and 20 seconds. 4/5
Telephone manner:
Friendly. 5/5
Relevant qualifications:
The representative said he was not qualified to offer financial advice. 0/5
Payment method:
Varying fees on products. 3/5
Guidance given:
The representative explained he was unable to offer financial advice, adding that the firm’s mortgage advisers would only advise on the lender’s products. The representative gave a brief overview of the lender’s relevant products. 2/5
Knowledge:
The representative showed good knowledge of the society’s mortgage products. 3/5
Email/web presence:
www.skipton.co.uk 3/5
Verdict:
The representative did the best he could. He was friendly and supplied some helpful information, albeit general.
20/35
