"Don't you smile at a crocodile; Don't be taken in by his welcome grin; He's just thinking how well you'll fit within...."
Sunday 30 May 2010
This headline was a readers response to an article in the Daily Mail entitled “Barclays' hard-sell tactics: You're a 'conquest' not a customer! By James Salmon
James Salmon says "The confidential document shows clearly how staff are incentivised to sell riskier investments, or more expensive, profitable products such as loans and private banking services.
The document shows that persuading a customer to gamble their savings in the stock market is 100 times more lucrative for salesmen than advising them to tuck their money away in a savings account.
A salesman will earn just 18p for each £1,000 saved by customers into a cash Isa, but will pocket £18.20 for each £1,000 invested in the stock market.
Those who manage to persuade a customer to sign up to Barclays Private Banking investment service earn £49.
The whistleblower adds: 'Some of the things we sell - such as structured products - are rubbish. These are one of the most popular investments. It's an easy sell as they offer elements of protection. But we are now being discouraged from selling so much because we want to be seen to be giving proper advice."
There are so many issues and discussion points on how to stop bad practices...but fundementally the problem is asking for advice from someone that is rewarded for selling products. Its always going to be a train wreck waiting to happen.
posted by Murray Round Wealth Management @ 10:37,
The Authors
Nicholas Round
Nic is the Managing Director of Murray Round Wealth Management Limited, who seeks to ensure the advice provided is truly independent. Based in Shropshire with clients local, national and worldwide, Nic has strived to find the best possible service for his clients needs, by researching and studying the market, trends and philosophies. Nic strongly believes Asset Class Management will bring his clients Financial Freedom, Independence and Happiness.
Kirsty
Kirsty is our communication guru. Managing information requires considerable due diligence and her passion for organisation gives the clarity we all seek. From Shropshire, with a Psychology Degree and much travelling, she is now back in Shrewsbury...and London often, keeping us all at Murray Round focused.
Welcome to our Blog
Our Blog focuses on the three Ts...truth, transparency and trust. The world of investment management is fraught with self interested parties keen to sell investment products but wrapped up as 'advice'. Only with totally transparency, can investors make informed and successful decisions. We have included various categories for simpler navigation, alternatively search our Blog using key words you think are relevant. We hope you find something of interest to you.
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