RBS job losses 'in response' to changes in banking laws
By Marcus Leach
New banking rules, that will come into force at the end of the year, have seen the Royal Bank of Scotland (RBS) cut 618 jobs.
The new banking laws, as part of the new Retail Distribution Review legislation, will mean that customers will be charged a fee for investment advice from a qualified professional.
At the end of 2012 the incoming Retail Distribution Review legislation puts an end to financial advisers earning commission on the products they sell to customers, and will instead see them charge an up-front fee for advice.
The changes are aimed at creating a more transparent banking service. RBS have said that they will create 351 new roles, as the Unite union labelled the cuts as 'brutal'.
"From 31 December 2012, customers will be charged a fee for the advice they receive from a qualified professional," an RBS statement said.
"If our customers choose financial advice for investment products, the costs will be made transparent at the outset.
"As a response to this, we will be reducing the number of roles by 618 across UK and creating 351 new roles."
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