According to an undercover survey by the Consumers Association, bank and building society advisers gave the worst advice on stakeholder pensions. The Association noted that the level and quality of advice varied, depending on the distribution channel.
38 advisers were mystery shopped, ranging from bank and building society advisers to insurance company representatives and independent financial advisers.
According to the Consumers Association, the best advice came from 13 independent financial advisers who checked the customer's attitude towards risk and talked about investment. In other circumstances, the role of advice was played down even though most advisers did come through and talk about Stakeholder. Some advisers did not offer advice to the customer and others relied on the use of Decision Trees that are designed to help customers decide on their own. Other advisers were confused over State benefits and some call centre staff were unable to offer advice.
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