PARIS, April 16 French insurer AXA
plans to cut 450 financial advisory jobs at its UK banking joint
venture, saying new commission rules make it tough to turn a
profit providing such advice.
AXA said in a statement on its UK website that the decision
to stop providing financial advice at the branches of its two UK
banking partners, the Co-operative Banking Group and Clydesdale
and Yorkshire Banks, came after a strategic review.
"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," AXA
UK Chief Executive Paul Evans said in the statement.
The move follows the implementation of Britain's Retail
Distribution Review (RDR), which came into force at the start of
2013 has replaced selling financial products to private
investors for commissions with a system of fees, emulating the
model employed by professions, such as the law.
The reforms, alongside higher barriers to entry for those
wishing to sell financial advice, such as more rigorous
qualifications, aim to ensure investors are offered what matches
their needs rather than what pays the salesman the best
(Reporting By Christian Plumb and Chris Vellacott; Editing by