Clydesdale and Yorkshire Banks, UK subsidiaries of National Australia Bank, have stopped providing financial advice offered by the two units’ private banking and business banks in a move affecting 130 employees.  

“This decision has been taken after careful consideration and is part of our commitment to focus our support for customers across our core retail and business banking strengths,” a spokesperson said. “While there may be some opportunities for redeployment, the overall role reduction of 1,400 announced in April of last year remains unchanged.”

The move will not affect any of the advice clients have received or policies they already hold, and the firm said it will continue to provide financial advice service support until 14 June.

“We are sorry that some information was inadvertently made available yesterday to some staff in relation to this announcement and have apologised to them,” the spokesperson said.  

In a similar move in September last year, Lloyds Banking Group said it will no longer provide investment advice to clients holding less than £100,000 (then worth $162,000, now $149,000) in savings and investments, highlighting how a new regulatory landscape is squeezing the mass affluent end of the landscape (view here).

More recently, last month Santander UK said it is “considering its strategic options” in light of the new regulatory framework - brought about by the Retail Distribution Review - for the provision of face-to-face advice. The firm said it will continue to provide advice to existing customers with maturing investments, but that it “has decided for now” not to pursue new business until it can find the “right model”.