Royal Bank of Scotland (RBS) is to cut more than 600 jobs from
its financial planning service due to the Retail Distribution
Review (RDR) that is set to come into force at the end of
2012.
The bank said that stricter rules on the sale of financial products
to customers, due to the RDR, had an impact on how it delivers
investment advice to its customers.
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“The RDR will have a fundamental effect on how
financial institutions deliver advice to customers across the whole
industry, and for the workforce involved,” RBS said in a
statement.
“From 31 December 2012, customers will be
charged a fee for the advice they receive from a qualified
professional. If our customers choose financial advice for
investment products the costs will be made transparent at the
outset.”
The bank added that alongside the 600 role cuts, 351 new roles
would be added, amounting to net job losses of 267.
RBS said 350 new roles will be created in the
following locations:
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By GlobalData- Approx 200 roles based in key locations across the UK
- Approx 90 roles in Bristol
- Approx 50 roles in Manchester
- Less than 10 roles in Edinburgh
David Fleming, Unite national officer, said the latest RBS job
losses were “brutal”. “Six hundred staff, who for some time has
faced job uncertainty as the bank reviewed their jobs, has today
heard the worst possible news.”
