HSBC’s financial advice arm will become restricted from 1 January next year.
The in-house team of 400 advisers currently offers a whole-of-market proposition, but this will change after the retail distribution review (RDR) comes into force.
A spokesman for HSBC said that nothing would change about the service offering, it just would no longer meet the Financial Services Authority’s definition of independent.
‘Our advisers will continue to advise on the same type of products and the number of products will stay the same but under RDR, what we advise on can’t be considered independent,’ he said.
The bank’s arm advises on 15-20 fund management groups and other products, he added.
Earlier this year the bank cut its tied-advice service, losing 650 advisers, leaving only its independent whole-of-market arm. The spokesman said that no further adviser job cuts were on the cards.