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Up to 100 Coutts staff face axe in restructure
by Danielle Levy on Feb 02, 2012 at 09:33
Up to 100 of Coutts’ front office staff face the prospect of redundancy, following the bank’s decision to separate its wealth management and private banking functions in the run-up to the retail distribution review.
A Coutts spokeswoman confirmed the changes, and she said clients were previously serviced just by their private banker who was responsible for both lending and wealth management, but now they would also be able to seek wealth management services from a dedicated team.
‘The traditional system was for one person to service clients across the spectrum, but we recognise clients have different needs,’ she said.
‘While some just need private banking expertise, others are looking for wealth management expertise,’ she added.
‘Regrettably, some staff may be impacted as a result of these proposed changes. We will, of course, look to minimise compulsory role reductions.’
The spokeswoman said front office staff at the firm have been served with a 90-day consultation period, and it is anticipated that no more than 2% of the headcount will be cut. This is understood to equate to 80-100 jobs.
She said the bank is working closely with trade union Unite, adding that the move would give some staff the opportunity to specialise.
The restructuring represents a change in strategy for the bank and forms part of CEO Rory Tapner’s (pictured) strategic growth plans, which include doubling assets under management by 2015.
Wealth Manager revealed in October that three of Coutts’ senior London-based managers had been asked to apply for alternative positions within the group, as part of a broader restructure. They were heads of private banking Nick Gornall and Kate Turner along with managing partner of the executive client group, Alan Midwinter.
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