HSBC is cutting 3,166 UK jobs as part of a restructure of its advice arm which will combine all the bank’s wealth advisers within the retail bank division.
The bank says the changes could see a net loss of 1,149 jobs as it hopes to redeploy affected staff into 2,017 new roles.
From 1 June, existing HSBC wealth advisers will come under the bank’s retail banking business. The move will see the role of commercial finance advisers scrapped, as well as 942 relationship managers who do not give financial advice.
The restructure will lead to an adviser team of 853 people. The bank is launching a “wealth learning programme” for employees to wish to become qualified to QCF level four.
HSBC customers need at least £50,000 in total assets to access advice from the bank.
The bank says the restructure will give customers a single point of contact for advice and banking services.
HSBC Bank chief executive Brian Robertson says: “I understand change is always unsettling, particularly for those directly affected. However, I also firmly believe what we are proposing is essential in order for us to fulfil our customers’ expectations.
“With the banking behaviour of our customers continually evolving we must change our business to meet their needs. We are doing everything possible to offer impacted employees opportunities from the many newly created roles, and I am confident a significant majority will remain with the bank.”
The latest wave of job losses come after HSBC axed its tied advice service last April resulting in up to 650 adviser job losses. HSBC converted its whole of market IFA arm to a restricted advice service in December ahead of the RDR.
Last week Axa closed its UK bancassurance arm, resulting in 450 job losses, following similar moves to exit mass market advice from Santander, Lloyds Banking Group and Barclays.
Axa told Money Marketing last week it would had to charge a 6 per cent advice fee in order to deliver advice profitably.