View more on these topics

90% Of banks and societies fail Which? mystery-shop test

Almost 90 per cent of banks and building societies gave inappropriate advice on how to invest a lump sum to mystery shoppers from Which?

Only four out of 37 branches gave good advice while the remaining 33 recommended “inappropriate products without properly explaining the risks” or failed to get even the “basics of good advice” right.

The investigation shows 21 of the 37 advisers recommended some of the money should be put into capital-guaranteed products, with eight saying these plans had “no risk”.

Six advisers suggested an investment bond, failing to adequately explain the risks.

Fourteen advisers failed to mention the Financial Services Compensation Scheme, with only one advising to split savings between two institutions to avoid going over the £50,000 limit.

Which? chief executive Peter Vicary-Smith says: “This is yet more evidence that the way many banks treat their customers has not improved since our taxes bailed them out.”

Evolve Financial Planning director Jason Witcombe says: “It is a sad indictment of the sales culture in large institutions. More reports like this need to get out into the public domain.”

Recommended

Quantitative surveying

This is the second of a series of articles that are designed to aid those looking to deepen or refresh their financial advice knowledge as the industry faces up to level four. This article will look at quantitative easing

Volatile Aim not right for savings

This is a Budget for the tabloids and not for the long term. Just how employers are meant to engage on providing benefits for employees when their own relief is being reduced is beyond me. I suppose that the reduction of tax on bingo does shine a light on the Government’s love of transferring risk […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com