High street banks are offering poor investment advice and recommending inappropriate financial products to consumers, according to an undercover investigation.
The consumer campaigning charity Which? sent nine researchers - all aged above 60 and posing as retired savers inexperienced at investing - to get financial advice at bank and building society branches across the UK. The study found that 32 out of 37 advisers made misleading statements about available investment products and appeared not to have a good understanding of the financial risks involved. Many of the bank employees recommended complicated financial products, with hefty fees to pull money out in the short term, which are considered inappropriate for the average investor near retirement age.
Even though financial institutions earn commission on the products they recommend, nearly half of the advisers said there was no cost for their advice.
One of the undercover researchers was told by an employee at Yorkshire Bank, a subsidiary of Clydesdale Bank, to invest £50,000 in a bond without disclosing that this would net the bank...Read more HERE