Insurance company AXA will be reducing staff numbers by 450 as new rules introduced in Britain's Retail Distribution Review have made some services unprofitable. New regulation limits selling financial advice, including the introduction of higher barriers to entry. As a result employees at Co-operative Banking Group and Clydesdale and Yorkshire Banks who have provided the service will be let go.
AXA UK chief executive Paul Evans:
We are very disappointed that AXA UK must also now withdraw this service having not found a model which balanced the regulatory requirement that the service be profitable in its own right, whilst setting advice fees at an affordable level.