The bank will instead focus on investors with £100,000 or more to invest and they will be offered face-to-face advice through its private banking service.
In the FSA’s complaints data Lloyds had a total of 431,708 grievances and 1,791 of these were related to investments, of which 37% were upheld.
A spokesperson for the bank, said: “An extensive review of how the market will evolve after the RDR has shown that for the majority of our customers’ demand for a fee-based financial planning advice service decreases when they have lower amounts to invest.
“As a result, from November we will not offer an investment advice service for customers who hold less than £100,000 in savings and investments. We will continue to offer protection advice.”
Lloyds’ existing retail investment customers with less than £100,000 will be able to access a non-advised service through Halifax, Bank of Scotland and Lloyds TSB.
The firm said it would give customers information and help with savings products on a non-advised basis and that during 2013 it would increase the range of savings products available.
All of the firm’s financial advisers will be offered new roles within the business and there will be no compulsory redundancies, Lloyds concluded.
