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Santander eyes return to investment advice

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Santander is considering offering investment advice again two years after the bank pulled out of the market after its advisers failed to meet RDR requirements.

The Telegraph reports Santander is looking at coming back to the investment advice market as it recognises the pace of growth it has seen in the number of current account customers is not sustainable.

The bank expects to see a slowdown in current account applications after announcing plans to increase the fees associated with the accounts. As a result, it is looking at a wider range of products.

Santander head of UK banking Steve Pateman told the newspaper: “You get to a point where it is not necessarily about acquiring more customers, it is about developing broader relationships with them.

“For instance we do relatively little in terms of pensions advice today, we are relatively light in terms of investment activity, and these are things I would expect us to do more of in the coming years. It is about having customers who see you as their prime financial provider across a whole range of products.”

Santander pulled out of investment advice in March 2013, after taking 800 advisers off the road because they were not fully trained to comply with the RDR.

The bank was fined £12.4m a year later for poor investment advice following a mystery shopping exercise.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. What an incredible lack of medium to longer term strategy – they effectively left existing ‘clients’ with products they no longer offer advice on, subsequently realise that they are running out of people to sell current accounts to and therefore decide to re-start cross selling of other products.

    I wonder how much cost was involved in the closing of the previous sales/advisor team and what additional cost will be involved in recruiting and training new advisers?

    A good example of why the typical person doesn’t trust institutions – it feels very much like they are lurching to where they see the next medium term profit centre to be.

  2. Roman Duzinkewycz 28th September 2015 at 5:35 pm

    Left hand, this is right hand – can’t believe I’m reading this – the lunatics have now really taken over the asylum. As for the head of banking’s comments – where did they find this idiot then??? Cocked it up before and will surely cock it up again – is it a legitimate reason to go back into the advice arena because they will see a slow down in uptake of current accounts because they are raising their charges? Rocket science it isn’t and I hope the FCA will take note of these ‘plans’ if they happen. Unbelievable but, as always, they will do it and make thousands of investors unhappy and stranded with inappropriate investments and their advisers will sell them because they are forced into it so they can a) make their targets and b) earn their bonuses / commissions and not necessarily in that order. You really can’t write this stuff as fiction never mind possible fact. I have two words for Mr Pateman but sadly can’t detail them here.

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