British bank Barclays has announced it will close its retail wealth management arm, along with its retail financial advice offering, as the UK market deals with the fallout from the FOFA-like Retail Distribution Review (RDR) reforms.
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.
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