We send trained mystery shoppers to 414 investment consultations to study households’ preference considerations in product distribution. Our findings show that investment advisors generally recommend products that match stated risk preferences but only show limited consideration of stated sustainability preferences. We find a high reliance on a product portfolio from a single in-house asset manager decreases the percentage of suitable product recommendations while a positive advisor attitude towards sustainable investments is associated with a higher percentage of suitable product recommendations. We also find that advisors alter preferences in legal documentation and do so even when monitored.
