Santander is closing its advice service to new business in light of changes brought on by the Retail Distribution Review (RDR).
Santander will continue to provide advice to existing customers with maturing investments, but has decided for now not to pursue new business until it "can find the right model for us, for our customers, and for the regulator".
The bank said it has delayed its plans to offer face-to-face advice to a broad base of customers because of the regulatory expectations post-RDR, the further investment that would be required and the length of time needed to complete that investment.
Santander will continue to review how it can offer advice to its customers in the future and provide access to investment products, it said.
The bank said staff in its bancassurance business have been told about the changes, and at this stage no one is at risk of redundancy.
A Santander spokesperson said: "There is never a good time to announce changes such as this and we are acutely aware of the uncertainty staff are facing.
"We are working closely with other business areas to ensure that many of those who may be impacted are able to secure roles in a growing Santander Group.
"Santander UK will continue to review how and to whom it can provide face-to-face advice, within the new regulatory framework, in a way that benefits and protects customers, our colleagues and indeed Santander itself."
The news comes amid reports Santander is being investigated by the Financial Services Authority (FSA) for possible breaches in the quality of its investment advice, according to Reuters.
The FSA has uncovered evidence of incompetency among investment advisers at a number of banks and building societies - resulting in unsuitable advice in some cases - following a mystery-shopping exercise.
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