HSBC Holdings is cutting 700 jobs in its UK retail banking arm, including 460 financial planning managers across the UK.
The bank says it is making the changes because of a drop in demand for its advice service due to the retail distribution review.
HSBC says around 1,500 advisers will remain in the retail banking division following the cuts and the bank insists it will not go down the same route as Barclays, which closed its entire financial advice arm in January.
HSBC says the restructure will see more than 50 additional senior financial planning adviser roles and 50 more mortgage adviser roles created.
The bank has 55,000 staff in the UK. Other jobs to go as part of the cuts include 140 staff in the bank’s service delivery area and 100 roles in IT operations, HR, finance and compliance.
In June, HSBC announced it will close its long-term care advice arm to new business as it “no longer forms part of the group’s strategic direction”.
HSBC UK deputy chief executive Joe Garner says: “These decisions have only been made after careful thought and consideration for our people, the longterm business needs and the economic environment. We will work extremely closely with all those colleagues affected by today’s announcement so that we can try to find them altern-ative roles, thereby minimising the number of people who leave the HSBC Group.”
Evolve Financial Planning director Jason Witcombe says: “It is good news for IFAs in that there will be less competition. HSBC has obviously done a lot of research into how much it would have to charge clients for advice and thought it appropriate to make such cutbacks.”