Lloyds eyes IFA insurance sales as part of a strategic shake-up
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Lloyds Banking Group is planning to take a slice of IFAs’ insurance sales as part of a strategic review which will also see it shed 15,000 jobs over the next three years.
Antonio Horta-Osorio, chief executive of Lloyds group, says the Financial Services Authority’s Retail Distribution Review will give his firm an opportunity to increase insurance sales.
The RDR will ban IFAs from receiving commission and require them to pass exams for a new qualification.
Horta-Osorio says: “The RDR will make IFAs consolidate and charge a fee for their advice, meaning many customers will not be able to afford their service and an advice and distribution gap will be created.
“We can offer these customers affordable and relevant advice and thereby increase the number of products we sell in our branches.”
In the review Lloyds group also announced plans to make £1.5bn of annual savings by 2014, cease trading in half the 30 countries in which it offers services, and focus on UK operations and revitalising its Halifax brand.
Horta-Osorio says: “We aim to make Halifax the first brand customers turn to as an alternative to the big four banks.”
HSBC also revealed plans last week to shed up to 700 jobs from its UK business, but also to create 50 mortgage adviser roles. The redundancies will be mainly in its retail banking and wealth management divisions.
In a statement it says: “An additional 50 mortgage adviser roles are being created, reflecting the rapid growth in lending over the past four years where our market share has risen from around 3% in 2007 to around 10% today.”
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