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AXA : to Cut 450 Jobs as Closes UK Retail Financial Advice Service
04/16/2013| 08:57am US/Eastern
By Inti Landauro

PARIS--French insurance company AXA SA (CS.FR) plans to cut 450 jobs in the U.K. as it closes down the face-to-face financial advice service it offers in branches of local bank partners.

AXA made the decision to withdraw its advisers from the branches of Co-Operative Banking Group and Clydesdale and Yorkshire Banks after evaluating the consequences of a change in banking regulation, the insurance company said in a statement.

"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's Chief Executive Paul Evans said in a statement.

Other banks in the country have also decided to stop providing such services because of the new rules, which are part of an effort from the country's government and regulators to lower the hurdles of entry for new banks and hence foster competition in the industry.
 

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