“We are still very much in a growth strategy and looking to hire and build the business in places such as the Middle East and Asia. There is no hiring freeze,” she said.

“But we need to reassess our business in the light of the economic climate,” she said, citing as reasons the UK recession, some duplication of functions due to Barclays’ purchase of part of Lehman Brothers, and the wind-down of projects started in 2006.

“We are looking at roles and seeing what is the case for them. We should, over a 90-day review period, get a clearer idea,” the spokeswoman added.

While the wealth management sector escaped largely intact from job cuts for almost all of last year, the last few weeks have seen a number of firms announce reductions in headcount. AIG Private Bank, based in Switzerland, is to shed up to 30 per cent of its total workforce. Last year, UBS said its wealth management arm in the US will cut about 500 jobs, falling mainly on support roles.

The largest wealth management firm in the UK, Barclays Wealth has become one of the most recognised brands of its type since its launch in 2006. As of the middle of 2008, it oversaw a total of about £132 billion in client assets.

The 500 positions come from a total of 7,300 people that Barclays Wealth employed worldwide, according to published figures as of the end of June this year. That number does not include staff acquired as a result of Barclays' agreement last year to buy part of Lehman Brothers.