sellers of financial products often have a bad reputation. The accusation: they mainly sell products, which are due to the high Commissions good for the Advisor, but not for the customer. On behalf of the Institute for asset accumulation (IVA) has looked at the quality of the advice of MLP is more accurate and the advice of banks compared. Finally, in the last few years the IVA for FOCUS-MONEY has been tested in the framework of the City Contest, hundreds of banks on the basis of a similar questionnaire. He was advanced in the area of mortgage lending to some criteria.
As a Benchmark for comparison with MLP, the average of the grades of the City Contest in 2019, the segment is according to IVA, “information on the average quality of advice in Germany in the private customer served”.
old-age provision and building Finance
The Tester is interested, in particular, the quality of the advice in the topics of old-age provision and building Finance.
- pension scheme
The testers were between 35 and 40 years old and employed. The essential hedging issues (personal liability, disability, accident) are covered, so the demand clearly targets the topic of “retirement”. Pension contracts, or only in a significantly inadequate extent, if at all. Thus, a demand is plausible, was given a gross annual income between 35,000 and 70,000 euros.
- mortgage
Here could be the Tester older (up to 50 years) and also work. The motive for the acquisition of real estate for the own use or a rental was optional. In order for a real estate purchase is the lens realistic, should the total equity ratio assets from 20 to 40 percent of the purchase price allow. The essential hedging issues are covered, the retirement provision clarified.
So MLP section in the Test
The MLP-consultants to land in all five categories of the Benchmark. In addition, the quality of the advice was consistent and good. All of the consultants scored with “very good” or “good”. Of 50 possible scores (see table), they were 46-to be a “good” or “very good”, only in four sub-areas, the result was “satisfactory”. The Institute for wealth building
Here you can learn more about the individual categories.
the conclusion of the IVA
The experts of the IVA are convinced that In comparison with the Benchmark, the sample should be measured-like the tested MLP-consultant “consistently positive”. “Throughout the consultation process have been identified (…) for no explicit weak.” The largest positive differences in quality between the MLP and the Benchmark makes the IVA in the heavily weighted basic dimensions of Customer equity and Tangible equity. In particular, the detection of the private and financial Situation, which was conducted by the MLP-consultants consistently all the way have played a major role. This large-scale information retrieval have led to a proper needs analysis and thereafter, to a reasonable offer.
MLP with a total score of 1.67 in the case of old-age provision and building Finance
“The average score for all test calls is 1.67 which is significantly better than the Benchmark (2,75),” the IVA and are believed to have “exceptionally good result”. This is the grade 2 plus. “The independent financial advice MLP proved to be in both test cases, as well above average compared to the Benchmark, the quality of the advice is superior in some areas compared to traditional banks.”
the Background to Test the quality of advice from MLP
Of 26. February to 24. April 2020 were held nationwide in ten consultations in the case of MLP. Five turned to retirement, five to a mortgage.After that, the testers filled in a questionnaire. For retirement you 140 individual questions were asked, in the area of mortgage lending 180 questions. For the unification, there were multi-stage response options. The achievement of these goals was translated into school grades (100 % target achievement = 1,0, 0 % = 5,0). The Institute for wealth building
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