AXA UK, part of the French-listed AXA group, has confirmed it will close its branch financial advice services in the UK, resulting in the loss of 450 jobs, as the firm cited the changing regulatory climate in the UK as a reason for wielding the axe. 

The decision to withdraw the advice service follows a strategic review into face-to-face financial advice models that would meet the needs of bank customers and the requirements of the new regulatory environment, the firm said. It did not go into more detail about its reasons when contacted by this publication.

While it did not mention the reform by name, the UK wealth management industry has seen the launch of the Retail Distribution Review reform programme, which stamps out use of trail commissions, as well as requiring higher qualification standards from advisors. 

“Following similar announcements by major retail banks, we are very disappointed that AXA UK must also now withdraw this service, having not found a model which balanced the regulatory requirement that the service be profitable in its own right, whilst setting advice fees at an affordable level,” said Paul Evans, group chief executive, AXA UK.

In other recent developments, earlier this month AXA UK appointed Ian Brimecome as chairman of its board.

AXA had €1,116 billion (around $1,462 billion) in assets under management, at end-December 2012.