Barclays trims back wealth service in UK
27 September 2013 2:17am
BARCLAYS will no longer accept new wealth management clients with less than £500,000, the bank revealed yesterday, as new regulations drive up the cost of doing business.
The retail distribution review has pushed financial advisers to charge an up front fee instead of commission, in an effort to make them give better advice, unbiased by kick backs from product sales.
But that has put off customers and made it harder to do business, as well as requiring more training for advisers.
It comes as the bank slashes its wealth management arm’s global reach as new rules make it more and more expensive to offer advice to rich clients.
A raft of rules on anti-money laundering make it too expensive to make money in some states, while the bank is also increasingly aware of potential for reputational damage should anything go wrong.
It is pulling back to 70 core markets, down from more than 200 currently.
That should still give it access to 86 per cent of global wealth, allowing the bank to cut costs and build scale, boosting profitability.
In other news
Tonight is the 60th Eurovision Song Contest, and once again we're in for an evening of cheesy music and crazy [Read more]
The Eurovision Song Contest is getting more and more expensive, despite Europe's decline into austerity [Read more]
There were delays of up to 30 minutes to trains in and out of Kings Cross Station, after the station was re-opened [Read more]
When a 20-year-old footballer publicly declares he wants to leave a club and his agent hurls insults at one of [Read more]
The outbreak of bird flu in the US is leading to an unprecedented situation for companies reliant on eggs – [Read more]
Germany's finance ministry has denied reports it was considering offering Greece its own parallel currency. [Read more]
Chancellor George Osborne was given a boost today, as higher tax receipts helped shrink the deficit by more than [Read more]
Beleaguered spread-betting firm Plus500 today suspended trading in its shares on London's junior market, following [Read more]
The news that card and electronic transactions have overtaken cash as the UK’s preferred method of payment is [Read more]
Despite the crippling effect of election uncertainty, offers received in April were up 15 per cent on last year [Read more]
Former secretary of state for communities and local government Eric Pickles is to be knighted, 10 Downing Street [Read more]
Network Rail engineers have destroyed the Abbey Wood station as part of the Crossrail development that is expected [Read more]
The Championship looks set to once again be named the fourth most-watched league in Europe, following a seven [Read more]
The Costa Coffee owner said Brittain was "the standout candidate from a very strong field". [Read more]
Sugary foods may be taxed to cover the costs of treating obesity, a government minister has said.
European governments must increase efforts to adopt structural reform if “lasting stability and prosperity” [Read more]
Accounting, finance and economics - choose to study any of these subjects anywhere and you'll be likely to land [Read more]
Badly-behaved bosses are a nightmare if you're the unfortunate employee who has to work for them - but they're [Read more]