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.