Barclays’ exit from the advice market was an act of “brutal segmentation” and at least one more big bank is likely to follow suit, according to Scottish Life.
At the Money Marketing RDR invitational event this week, chief executive John Deane said: “Barclays have done segmentation very clearly. It was brutal. What they are saying is if you are not high-net-worth, do not come to us.”
He questioned if this was where the FSA intended the retail distribution review to take the industry.
He said: “Is this the place we were intended to be? We can debate that but it is actually irrelevant. This is what is happening in the industry now.”
“It is not a realistic proposition for banks so I would expect at least one other major bank this year to withdraw from giving advice in branches except to high-net-worth clients.”
Deane says this will provide business opportunities for advisers as well as increased compet-ition for high-net-worth clients.