Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/wealth-manager/article/a630869
How Lloyds' wealth division is readying for RDR
by Sarah Miloudi on Nov 01, 2012 at 10:34
While Lloyds Banking Group has been grabbing the headlines thanks to its unwelcome £1 billion payment protection insurance surprise, the lender's wealth division has been busy getting ready for the new regulatory regime.
As the retail distribution review (RDR) fast approaches, Lloyds has opened up a private banking client centre so to offer clients speedier access to its services.
The innovation was borne out a research project into the impact of the RDR. Lloyds said the same project also prompted its decision to start referring clients with £100,000 of investible assets toward its private banking services division.
Lloyds, which roughly a year ago said it wanted to become the go-to UK wealth management provider, has also decided to end its push into the mass market.
Clients with less than £100,000 in savings and investments will not be offered any investment advice service.
However the bank has a host of new products in the pipeline for these clients, with many of these coming to fruition during 2013.
Lloyds explained in an announcement to the Stock Exchange: 'With the onset of the retail distribution review we have undertaken extensive market research on customer requirements and how the market will evolve.
'As a result customers with over £100,000 of investible assets who would benefit from holistic financial planning will be referred to our private banking service. For customers who hold less than £100,000 in savings and investments we will not offer an investment advice service but will continue to give these customers information and help with savings products on a non-advised basis.'
Lloyds is not the only big bank looking to crack the competitive wealth management market - the likes of Barclays already have a strong grip on the space and Investec, following its recent acquisitions of Williams de Broe and Rensburg Sheppards, has formed its own distinct Investec Wealth & Investment division.
The progress banks have made has been mixed, however, with the likes of Credit Suisse seemingly scaling back its operations.
News sponsored by:
Today's top headlines
More about this:
Look up the shares
More from us
- Lloyds hit again as PPI charge grows by £1bn
- Can Lloyds crack wealth management?
- Famous five: the big banks and their UK wealth strategies