The number of staff authorised by the FCA to sell investment products to customers at bank or building society branches has fallen by a fifth in the past five years, according to Bovill.
The regulatory consultant’s research showed that the number of staff authorised to sell investment products at retail banks in the UK was 35,130 at the end of March 2015, compared with 41,760 staff in 2011, a fall of 16 per cent.
Bovill head of wealth management and banks Mark Spiers said: “Pressure from the FCA for banks and building societies to move away from rewarding its staff on the basis of the volume of financial products they sell has forced most of the high street banks to readdress how they provide financial advice.
“That has precipitated a significant drop in the number of staff employed to sell investment products at the banks.
“However, the introduction of RDR has not been the only factor driving the banks away from providing advice.
“The FCA has been particularly aggressive in going after banks that have implemented high-pressure selling techniques, encouraging bank staff to sell products customers didn’t need in order to boost their bonuses.”
According to Bovill, in 2013 a number of high street banks were fined a then-record £28m for having in place a sales culture that pressured staff into selling products to customers.
Mr Spiers added that the change could also be put down to a move by many banks to a more digital focus.
He said: “The rise of mobile and online banking in combination with other cost pressures, has led many of the UK’s biggest lenders to drastically reduce the size of their branch networks. Many financial advisers have seen their roles disappear as a result.”
Adviser view
Dan Farrow, director of Essex-based SBN Wealth Management, said: “The fact that banks don’t have advisers any more has left an advice gap for people who won’t now go to financial advisers, so won’t be sold saving products.”
