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Santander sets out RDR investment advice plans

Santander 480

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.

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Comments

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

  1. Another one bites the dust. Nice one RDR! The affluent wilth money to risk can get quality advice, those with only a few thousand will turn to online execution only and end up with a lovely precipice bond.

  2. Excellent news, more work for us.

  3. Whilst banking advice was generally poor, it needed improving, not eradicating. At the moment we are seeing the daily widening of the savings gap into the savings chasm.
    On a selfish note, I feel that I will do particularly well from it all, the trouble is that it was supposed to be the consumer, not me, who benefitted from this latest expensive experiment but that was lost sight of many months ago……

  4. Santander Asset Mgmnt. After 5 years my Santander ‘growth’ fund was worth £10.00 less than when I started. This is very poor.

    All the banks aren’t interested in the little savers, the ones who paid their taxes to bail out the banks, just those with large sums to invest. This is disgusting.

    Why would I pay for tied advice when I can go independent ?

  5. RDR has completely destroyed the access of those who really need financial advice to reasonably priced help.

    The industry was meant to be reformed. Instead the banks have pulled up the ladders and decided to milk wealthy customers instead.

    The banks are just up to their old tricks again, and a generation that really needs access to clear advice has been abandoned.

    The FSA has failed to protect the public once again.

  6. More redundancies on the way, but not mentioned by Santander.

  7. Will the FSA take note of the calamitous situation that they have single-handedly caused?

    Will David Cameron, George Osborne or some other non-interested bystander be made aware of this?

    The already tenuous link between consumers and saving is being cut.

  8. Don’t blame the banks for this mass exodus.

    The FSA has arranged it thus. Caught between the devil and the dirch they have decided that if you want to make a profit you need to focus on HNW clients – just like many of the IFA community and SJP.

    Blame the FSA, blame Ron Sandler and blame a Government that does everything but govern.

  9. If santander or any other bank for that matter believed their own products to be good value and competitive then they would enter the whole of market and offer their products via independents.

    If all product providers were forced to offer their products only thorugh IFA’s then the consumer would be king and products would be better than ever for the consumer.

    A single distribution channel is the only solution to product fairness and will end all the cosy arrangements.

  10. So, that’s only Nationwide and Santander giving advice next year, to the normal ‘man on the street’ At what cost?
    Will there be more redundancies?

  11. As expected the RDR will devastate the financial services industry, isolate millions of ordinary consumers from IFA services and will eventually harm our economic recovery. The majority of ordinary working Consumers will not engage advisers on a fee basis for small investments, which previously were available to them and which in the past have proved worthwhile, who in their right mind as an adviser will be able to afford to run their business advising clients with less than £100,000 to invest, the whole NEW MODEL advice process is slanted towards providing advice to wealthier clients only.

    As far as the FSA is concerned, smaller and less wealthy investors can forget being able to access economically priced advice services.

    I wonder who will take the FSA to task when the government finds out that less money is being invested in the capital markets, thus less money available for company growth, less profits, less tax paid to the treasury, less people employed and more drawing benefits.

    EVEN Jeff Prestridge in the Mail on Sunday a former advocate of the aims of the RDR now expresses concern over what is fast becoming the most consumer detrimental change to this industry in decades.

    Loonies running the asylume who don’t care if they drive the rest of us into madness, then we will all be in accord with the Financial Stitchup Authority. Ooops ! Financial Casualty Authority now isn’t it with Mr Wheatley telling us all how he intends to ruin our businesses. Not being able to Novate a business when you want to sell it is downright daft.

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