The job cuts are part of a strategic company decision to shed 30,000 worldwide by the end of 2013 in an effort to make £3.5bn in cost savings. Just over 10% of the head count loss will come from the UK.
The net effect of new roles being created is that 2,217 staff will be leaving HSBC in the UK.
A spokesperson for the bank said the introduction of RDR and other fundamental changes to its regulatory framework, including increased capital requirements, will have a major, negative impact on its UK business.
As part of the restructure, the middle tier of the bank’s investment proposition will be removed. This will leave its execution-only and whole of market propositions in place, with its tied financial planning advisers, who advise on HSBC products, losing out.
A spokesperson confirmed that, including line managers, this involves 650 people, 50 of who will be able to become whole of market IFAs with the bank, part of its Premier service, subject to gaining the right qualifications.
The cost savings are a pre-emptive attempt to counter an increase in the underlying cost of providing banking services in the UK.
Chief executive Brian Robertson describes its moves as to “reduce layers of management and bureaucracy”, with most of the staff leaving from senior or middle-management roles.
In 2011, HSBC cut 7,000 jobs worldwide, 460 of which were from its wealth management division as a direct result of RDR.
