The firm said news Santander was considering the future of its advisory offering in the UK meant 800+ advisers faced the possibility of redundancies.
Discussions on the potential pull out of the mass advice market by yet another high street bank followed publication of an FSA mystery shopper review, which saw six banks’ investment advice service assessed.
The FSA said the review had led to wide-scale revisions by each of the banks of their advice processes and to the retraining of advisers due to failings to fulfil the regulator’s expectations.
In one case, however, the regulator said it was pursuing an enforcement investigation, and reports since have suggested the bank in question is Santander.
Inside reports
The BBC said the bank’s sales advice was under scrutiny after the mystery shopping exercise undertaken for the FSA. A report on its website added that Santander’s advice was so poor it now faces sanctions.
Allegedly, this has led Santander to consider whether it can continue to provide face-to-face advice, putting more than 800 jobs at risk as it holds a strategic review of the division.
True Potential said this instance should be put into context, with estimates that the UK’s financial services sector will cut a further 18,000 jobs over the next three months (according to the Confederation of Business Industry and PricewaterhouseCoopers).
In the final quarter of 2012 PwC figures show banks, insurers, asset managers and other finance firms cut 25,000 jobs, taking the total lost in the sector since the beginning of the downturn in 2008 to 132,000.
Earl Glasgow, managing partner at True Potential Wealth Management, said: “As we saw with Santander, we expect there will be a further decline in financial advisers working for banks but we firmly believe their services are much needed in today’s marketplace.”
Santander were unavailable for comment.
