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HSBC restructures advice arm; 1,149 jobs at risk

by Jun Merrett on Apr 23, 2013 at 12:38

HSBC restructures advice arm; 1,149 jobs at risk

HSBC is to restructure its advice arm putting 1,149 jobs at risk.

The restructure will affect 3,166 employees but the bank will create 2,017 new roles.

As part of the restructure the bank will merge its advisers into its consumer retail banking business and create a diploma qualified advice force of 853 people.

The bank will scrap its commercial financial adviser division and cut 942 relationship managers who do not give advice.

The bank said the changes mean that HSBC UK Premier customers who already hold £50,000 of savings and investments with the bank will have a relationship manager qualified to give financial advice as a single contact for both their banking and financial advice needs.

The bank said the restructured advice service would operate with the same charging structure as before.  

Brian Robertson, chief executive of HSBC Bank, said: ‘I understand change is always unsettling, particularly for those directly affected. However, I also firmly believe what we are proposing is essential in order for us to fulfil our customers’ expectations.

‘With the banking behaviour of our customers continually evolving we must change our business to meet their needs. We are doing everything possible to offer impacted employees opportunities from the many newly created roles, and I’m confident a significant majority will remain with the bank.’

Antonio Simoes, head of UK Bank and deputy chief executive of HSBC Bank, said the changes were part of a step away from a sales-based approach and aimed at improving its culture to serve customers.

‘Better serving our customers, particularly for their wealth management needs, is essential if we are to fulfil our aspiration of becoming the world's leading international bank.

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16 comments so far. Why not have your say?

Jonathan Kirby

Apr 23, 2013 at 12:51

"According to the Daily Telegraph, Flint said the industry was moving towards serving high-net-worth clients and it had become harder to sell simple products to lower-net-worth clients"

Was this really what RDR intended to create?

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Cynicalme

Apr 23, 2013 at 12:55

Well there's a surprise...not.

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PAUL WOOLLEY

Apr 23, 2013 at 13:02

Yet another unintended outcome of RDR.

The shame is it could have been really great but they cocked it up badly.

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Hugh Jars

Apr 23, 2013 at 13:08

''With the banking behaviour of our customers continually evolving we must change our business to meet their needs'' ?? WTF ?

No....I Don't buy that one Mr Robertson, banking behaviour of customers is not continually evolving..... the public hate change....

What he really means is the behaviour of the banks (generally) is continually evolving, based around maximising sales /profits at the lowest possible cost, and the end user (bank -customer ) is just cannon-fodder...

they are a bunch of something that rhymes nicely with Corporte Bankers

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Phil Sipocz

Apr 23, 2013 at 13:09

Customers not clients.

Harder to sell to smaller customers.

Only interested in high net worth.

What goes around comes around.

Sorry for the people losing their jobs but its the banks who created RDR with their behaviour and now they are reaping the consequences. Intended or otherwise.

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Michael Brown

Apr 23, 2013 at 13:10

So even more without financial advise.

I wish that those in the FSA now FCA or have moved to more lucrative roles, Sands etc.can look in the mirror and say "This is not what we expected". I think not.

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Man of Kent

Apr 23, 2013 at 13:14

In the Telegraph article, Douglas Flint says bank staff should be rewarded for “independence of thought, character, judgment, accountability, responsibility [and] a sense of duty that goes well beyond the individual self-interest.” Good to know those at the top have provided such fine role models.

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EURYN OWEN

Apr 23, 2013 at 13:29

‘These proposals, together with the recent removal of all sales targets for our employees and the complete decoupling of incentives from those sales, mean our customers can expect us to fully focus on serving their needs and do the right thing.

No, Sir, your customers have always expected you to fully focus on serving their needs and for you to do the right thing. Sales targets where never a benefit to your customers.

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Bazil Bacon

Apr 23, 2013 at 13:48

Brian Robertson, chief executive of HSBC Bank, said: ‘I understand change is always unsettling, particularly for those directly affected. However, I also firmly believe what we are proposing is essential in order for us to fulfil our customers’ expectations.

AS LONG AS YOU HAVE AT LEAST £50,000

Antonio Simoes, head of UK Bank and deputy chief executive of HSBC Bank, said the changes were part of a step away from a sales-based approach and aimed at improving its culture to serve customers.

DID I MENTION YOU HAVE AT LEAST £50,000

Flint said the industry was moving towards serving high-net-worth clients and "it had become harder to sell simple products to lower-net-worth clients".

BECAUSE THEY DON'T HAVE AT LEAST £50,000

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alan mcintosh

Apr 23, 2013 at 14:12

If banks had managed their clients expectations in the first place, they would not have to go through the pain they are currently having to.

Yet again, it Looks like a field day for the organised IFA?

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Christopher Petrie

Apr 23, 2013 at 14:50

Looks like a few thousand more bank customers will be safely left alone now, rather than being ripped-off and flogged unsuitable products, just to satisfy the local bank Sales Management.

The UK just became a bit safer for the unsuspecting general public.

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Newbie

Apr 23, 2013 at 18:24

I guess this is in response stopping and re-attracting the customers who moved with the good advisers who went on to become IFA's (because they were honest and ethical enough to be able do so and had always served the needs of clients as opposed to pushing products of the banks).

Generally speaking advisers who worked with clients as opposed to flogging them something have generally come out OK from this debacle and their clients still have faith in them.

As for the advisers who racked up sales figures the are still looking for the next sweet spot and their customers.. - well they are the ones left with the banks with complaints on their hands.

HNW clients are taking their wealth away from the banks and leaving the banks to do what a bank does ... carry out basic transactions....

As with HSBC I can assume that other banks will re-open their doors to what they refer to as 'advisory' but what we call selling' and they will have a one charge rate fits all based on amount of monies as opposed to fees.

Watch this space

the Good bank advisers whom created relationship

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Dazlin43

Apr 23, 2013 at 18:37

Going by the feelings of my former colleagues expressed to me today they may be creating these new roles but will struggle to fill them as nobody in the current regulated roles wants the new jobs and if they haven't been offered redundancy will just leave any way

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Dazlin43

Apr 23, 2013 at 18:37

Going by the feelings of my former colleagues expressed to me today they may be creating these new roles but will struggle to fill them as nobody in the current regulated roles wants the new jobs and if they haven't been offered redundancy will just leave any way

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Ian Lees

Apr 24, 2013 at 06:22

Following on from the jobs destoyed by Aviva HSBC - appear to be getting rid of 3,000 jobs and creating 2000 " new jobs", - now that like money laundering drug money is " creating banking". The sums do not add up. The loss of commercial bankers - to businesses demonstrates their lack of worth - and such a service offers poor value. Mor eimportantly their lack of commitment - to consumers is at the forefront of theri failure - and their advertising totally misleading. It ois a pity their elbow and their posterior are not talking to each other ( as well as their remaining customer). Like Nationwide the bank - refuses to allow customers access to theri own cash - unless you use the flawed overdraft system - which is a visa card. Nationwide employees destroy the Visa card to protect their earnings - and to stop cusotmers getting access to theri own cash. Graeme Beale uses Visa cards - because he trusts his employees less than his remainign customer. Bank of Scotland overdraft interest rate is 23% - and with teh Gov't giving the banks more money - they can stash it away for themselves - rather than lend to small businesses. Bank of Scotland is removing itself asa bank form Micro Businesses - identified by theri owners TSB as being companies with turnover of less than £ 2 M . Although micro businesses will still have to " auto enrol " for pensions - or maybe not ? No banking no cashflow = no pensions ! Welcome to David Camerons world . Perhaps like nurses who are now required to undergo additional training - MP's should undergo a period in business - even Vincey Cable has never ever been in business . . . and has always been a political animal or an MP

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Stuart Poonawala via mobile

Apr 29, 2013 at 08:27

This is the inevitable result of putting Bankers in charge of the Banks advisory sales force some years ago. I have more experience running a Financial Planning Firm than anyone at the top of HSBCs tree. No wonder they are all running around like headless chickens chopping AMG changing their proposition and trying to stem the mass stampede of advisers and clients.

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