Santander will offer face-to-face investment advice post RDR to customers with existing savings and investments of at least £25,000.
The investment advice service will be restricted to products from Santander Asset Management.
Santander will launch its RDR advice service towards the end of year. Customers will also be advised on Santander’s savings and banking products, and protection.
A Santander spokeswoman says: “As far as investment advice goes, this will be what is termed a restricted advice service as it will offer sound advice on investing and on the most suitable solution from the range of investments provided by Santander Asset Management.
“We anticipate that in respect of investment advice, our process will be aimed at those customers with existing savings and investments of £25,000 or more.”
Money Marketing revealed yesterday that Lloyds Banking Group was axing its mass-market investment advice service from November. Only consumers with £100,000 or more to invest will be offered face-to-face advice through LBG’s private banking services.
Barclays decided to close its financial planning arm in January 2011 and exit the market for retail consumers. It continues to offer advice to high-net-worth clients through Barclays Wealth.
In April this year, HSBC announced it was scrapping its tied advice service. It is keeping its whole-of-market advice and execution-only services.
In June, the Royal Bank of Scotland announced it was scrapping its 118-strong IFA arm and moving to a restricted advice model as part of an overhaul of its advice service ahead of the RDR. The bank has also reduced its financial planning arm by half, resulting in the loss of 618 jobs.
Nationwide Building Society is currently piloting a fee-based advice service through its single-tie agreement on investment business with Legal & General.