HSBC is to axe its tied advice service in a move that will see up to 650 of its advisers losing their jobs.
The bank is going to keep its whole-of-market advice service and its execution-only service. A HSBC spokesman says around 50 of the tied advisers will be given the opportunity to switch to its whole-of-market team.
In total, there will be 2,217 job losses, with retail bank staff and head office administration roles making up the bulk of the cuts.
Last June, the bank cut 460 adviser roles across the UK in a round of job cuts which totalled around 700.
In January last year, Money Marketing revealed Barclays planned to close its advice arm, Barclays Financial Planning, citing the RDR as its main reason.
HSBC is planning to cut around 30,000 jobs in total worldwide in a cost-cutting exercise that could save up to £2.2bn.
Lloyds Banking Group plans to split its direct-advice arm as part of its RDR distribution plans, with one division offering basic protection advice and other division offering a ’financial planning’ service. Nationwide Building Society is currently piloting a fee-based advice service through its single-tie agreement on investment business with Legal & General.