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HSBC to shut long-term care advice business

HSBC will close its long-term care advice arm to new business as it “no longer forms part of the group’s strategic direction”.

The Nursing Homes Fees Agency will shut to new clients from July 1. It will continue to assist customers who are currently in the process of receiving financial advice from the organisation.

HSBC says: “Through its small network of advisers NHFA provides specialist advice to a few hundred customers a year on structuring their own finances to meet ongoing care costs.

“It is very much a niche market, and as such, it no longer forms part of the group’s strategic direction.”

The Nursing Homes Fees Agency was bought by HSBC Actuaries and Consultants in 2005 and was transferred to HSBC Bank when HACL was sold in 2009.

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Comments

There are 11 comments at the moment, we would love to hear your opinion too.

  1. Barclays withdraws from providing independent financial advice in branches. Now HSBC withdraws from giving advice re Long Term Care.It appears the banks are finally realising they cannot offer a decent service to individual clients who need more than just an investment bond.

  2. Having worked for NHFA in the past this is a sad day. It is a classic example of a bank purchasing a business without really understanding it and the market it operates in. There is a growing need for LTC advice but it requires government and local authorities to realise that for some elderly people in care ICPs can protect their care, remaining assets, the care provider and you and me – the tax payer.

  3. Francesca Gandolfi 21st June 2011 at 5:10 pm

    Just proves that this area of advice is only for the independent specialist advisors in this market, as most of them are proving what a viable and profitable business area this is.

  4. The government would rather people didn’t get advice in this area.

    What, avoid paying for care AND avoid the outrageous IHT regime we have in this country.

    Did you know that Portugal has no IHT and every other European country has a regime far less onerour that in the UK.

    Rip off Britain takes your money when you are too old to look after yourself and if you still have anything left, even after you’re dead.

  5. This was a great IFA company that was slowly and methodically destroyed by a great big bank. Layers and layers of management, compliance and bureaucracy sucked out all the empathy, care, marketing budget and profit.

    What were they thinking when they bought it – the excuses given above were as true in 2005 as they are in 2011.

    The one positive thing is that it is going to cost HSBC an absolute fortune.

    How sad.

  6. Well I joined NHFA about 3 years ago…went through the training course and then went round a few of the bank branches. I decided that whilst the original NHFAs was probably for me…the new bank owned wouldnt be and how right I was. The original people and founders of NHFA (including a great lady in Compliance (yes even compliance) were from what I could see fabulous people..it was more like a family a really nice family. What a shame and another example of a Bank not understanding the jewel it held!

  7. Reference Bill Wells comment. I disagree, there is a difference with advice about avoiding paying for care (eg deprivation of assets etc) and advice on how best to pay for care. Unfortunately too many people run out of money and the tax payer then picks up the tab.

  8. Bill isn’t Portugal bankrupt along with a few other European countries so hardly a fine example to use about onerous tax regimes.

  9. Bill Wells – ‘outrageous IHT regime’?? How is someone having to pay tax of 40% on a sum of money they didn’t earn ‘outrageous’?

    And they don’t pay any tax at all on the first £325,000, which is FIFTEEN TIMES the national average earnings.

  10. Heather Clare Stockridge 22nd June 2011 at 10:02 am

    NHFA was a great company, which was taken over by a bank which didn’t understand the business sector the company operated in. NHFA had empathy with and for its clients in a way that a multinational bank doesn’t. As has already been said HSBC did not appreciate the jewel it held and has now destroyed. There are a lot of elderly and vulnerable people left without the unbiased and ethical support they need at a crucial time in their lives. What a sad day.

  11. A great shame. NHFA were our first Fintal users, committed and very helpful in making sure that the system met the needs of themselves and customers. I learnt a lot about equity release from them.

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