Wednesday, 26 January 2011

"Unsuitable" advice bank axes 1,000 financial planners


Barclays is axing its branch-based financial planning service, putting 1,000 financial planners' jobs at risk.

The move comes after the bank was fined £7.7m for failings in the financial advice it provided, which may have led to thousands being recommended unsuitable investments.

Barclays says "there is no link whatsoever" between the two developments, but that the planning operation had become less commercially viable.

It will stop giving advice to all customers with less than half a million pounds to invest -- so called high net worth clients.

People will be directed towards its website, where they will be able to make their own unguided choices between 18 investment funds.

Barclays will consult with its 1,000 financial planners and offer them 6 months to look for new jobs in Barclays or elsewhere.

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