Better advice from IFAs than banks

Anyone in the UK looking for financial advice on pensions or other
savings products should stay clear of banks and building societies,
it would seem. A mystery shopper study undertaken at two branches
of each of nine major banks and building societies by independent
consumer body Which? found that only 32 percent of tied advisers
approached for advice passed all benchmarks set by Which? for
giving good advice.

Which? researchers posed as people who had received an inheritance
of £30,000 ($60,000) and wanted advice on how best to invest it.
Most were in their mid-50s to early 60s, cautious and novice
investors with no other savings or investments.

Which? noted that among serious shortcomings, seven out of the 18
tied advisers made misleading statements about providers they could
recommend, giving the idea that the choice was much larger than it
was. Thirteen made misleading statements about costs and more than
one-quarter failed to establish attitude to risk correctly.

Independent financial advisers (IFA) fared better, with 48 percent
of the 21 put to the same test achieving full marks. Which? said
the pass rate improved compared with 2006, when 34 percent of IFAs
and 16 percent of tied advisers passed overall.