HSBC Cuts 700 Jobs at Risk in England

Sunday, July 3, 2011 Label:
Global banking giant HSBC said on Thursday it would cut 700 jobs in the UK, and blamed the upcoming changes in the law to provide financial advice to consumers.

Trimming jobs announced on the same day that the Lloyds Banking Group (LBG), which saved the state launched a plan to cut 15,000 staff, or 14 percent of its workforce, in a major overhaul to save 1.5 billion pounds per year in 2014.

"Around 700 jobs at risk in British banks and dominated in the area of financial advice, across the country," said an HSBC spokesman. Banks listed on the London stock exchange are reshaping the wealth management business before the new rules introduced in 2013 to regulate the provision of advice.

"From that time onwards, if you want financial advice you will have to pay for it up front," the spokesman said. "It will vastly reduce the amount people pay for financial advice," he added.

HSBC will cut 460 jobs from the area of financial advice, but will retain counsel in the 1500 UK retail branch network. The lender added that it would also reduce the 140 staff from software development units and 100 other positions in what is called the "back office" such as compliance, head office and IT. Unlike the LBG, HSBC survived the crisis of 2008 without taking government assistance.

Sources: between / AFP
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