L&G: banks will come back to advice

At an event in London today, L&G managing director of banks and building societies Chris Last said high street financial advice has moved to building societies as many banks have exited the space.

Through restricted advisers in branch, L&G has access to more than 85% of total UK building society assets, 83% of branches and 87% of investing members, according to the Building Society Association.

However, Last said he expects banks to re-enter the advice market in the future.

"I think we will see banks coming back to advice," he said.

HSBC is among the banks which closed its tied advice service, with the loss of about 600 jobs last year, as it prepared for life post Retail Distribution Review (RDR). The bank still has an IFA service through its Premier arm.

Lloyds Banking Group (LBG) also pulled its mass market investment advice service for investors with less than £100,000 to invest last year. The group will continue to offer an advice service for those investors with more than £100,00.

Co-operative Financial Services (CFS) exited the financial advice arena in 2011, with the loss of 670 field-based advisory roles.

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