Tuesday, 16 April 2013 12:38
AXA scraps branch-based financial advice cutting 450 jobs
AXA UK is to cease offering retail banking advice with its partners The Co-operative Group and Clydesdale and Yorkshire Banks.
The decision means 450 advisers will lose their jobs and customers will be serviced via the firm's call centres.
The firm said the decision came following a review of the financial advice model where it failed to find a model which would meet both the needs of customers and the regulator.
The financial advice partnership with The Co-operative Bank was set up in November 2011 and it was hoped AXA would offer advice to the firm's five million retail banking customers.
{desktop}{/desktop}{mobile}{/mobile}
Paul Evans, group chief executive at AXA UK, said: "Following similar announcements by major retail banks, we are very disappointed that AXA UK must now withdraw this service having not found a model which balanced the regulatory requirements that the service must be profitable in its own right, whilst setting advice fees at an affordable level.
"I would like to thank everyone who has worked so hard as part of our branch-based advice team over the past nine years."
• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.
The decision means 450 advisers will lose their jobs and customers will be serviced via the firm's call centres.
The firm said the decision came following a review of the financial advice model where it failed to find a model which would meet both the needs of customers and the regulator.
The financial advice partnership with The Co-operative Bank was set up in November 2011 and it was hoped AXA would offer advice to the firm's five million retail banking customers.
{desktop}{/desktop}{mobile}{/mobile}
Paul Evans, group chief executive at AXA UK, said: "Following similar announcements by major retail banks, we are very disappointed that AXA UK must now withdraw this service having not found a model which balanced the regulatory requirements that the service must be profitable in its own right, whilst setting advice fees at an affordable level.
"I would like to thank everyone who has worked so hard as part of our branch-based advice team over the past nine years."
• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.
This page is available to subscribers. Click here to sign in or get access.