The UK’s largest bank had previously announced it would close its high street bank adviser unit, following the lead of rivals HSBC, Santander, Lloyds TSB and the NAB-owned Yorkshire and Clydesdale Banks – which have all slashed their retail advice units since January when the RDR came into effect, banning product commissions in the UK.
A Barclays spokesperson told the UK Daily Telegraph that the RDR requirements were a major factor in this decision to close the retail investment arm.
The bank now expects to only provide advice and investment management services to high net-worth investors with more than GBP £250,000 in assets.
For an in-depth look at the UK market and fallout from the RDR, you can refer to the upcoming July edition of ifa magazine.
CBA next?
Yes, that’s correct Steve, if you look at whose running the Industry bodies and where their interests lie, we are all sitting ducks.
Just in case any of you dont get it, IE what will come to be in the Australian FP market. Your resale values of your practice will be slashed to the bone. Your coients will be constantly reminded & encouraged to SACK you or at the very very least question your worth every few months. And if you by some miracle manage to keep your business viable the cost of Complance, Dealer Group Fees, PI insurance & extra staffing cost will kill off any hope of a big earning business for you & any successor. Blame youe useless industry bodies for sitting on their hands when they should of been RUNNING to your defence. Thanks FPA & AFA, thanks for nothing.
Agree there Wildcat….and say hello to direct selling business to consumer. Hidden commission will rule again….but it will be more hidden then ever before because it won’t need to be disclosed, just built into the margins.
But entirely predictable.
More costs in the supply chain, fees up, less ppl can afford it and/or be justified for a portfolio of $X.
Result, the future of financial advice means LESS ppl get advice.
This is the outcome I think they wanted.
Long live industry funds and a one size fits all for everybody I say!!
Very interesting indeed….yet disturbing.