Banks Give Bad Advice
Which? Reports (again) that high street banks and building societies are giving poor advice and recommending inappropriate investment products to elderly and potentially vulnerable consumers. An undercover investigation showed that only 5 out of 37 advisers gave good advice.
The cost of advice was not explained despite recommendations for products with high costs from which the bank would receive large commissions. 18 of the advisers claimed there was no cost for their advice.
Consumer protection under the Financial Services Compensation Scheme was not explained and mistakes were made about the limits of the protection.
Which? Executive director Richard Lloyd said: ‘Now, more than ever, consumers need advice they can trust on what to do with their money. It’s shocking to see such low standards. It’s also disappointing to see that things haven’t improved in the past year’. An earlier report in March 2010 had exposed similar failings.
See an independent financial adviser !