This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-18505051#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
The article has changed 4 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Royal Bank of Scotland to cut 618 jobs | Royal Bank of Scotland to cut 618 jobs |
| (40 minutes later) | |
| The Royal Bank of Scotland has said it will cut 618 jobs in response to new banking rules coming into force at the end of 2012. | The Royal Bank of Scotland has said it will cut 618 jobs in response to new banking rules coming into force at the end of 2012. |
| The bank, which is 82%-owned by the government, said it was having to make the cuts because of the new Retail Distribution Review legislation. | The bank, which is 82%-owned by the government, said it was having to make the cuts because of the new Retail Distribution Review legislation. |
| Under the new rules customers will be charged a fee for investment advice from a qualified professional. | Under the new rules customers will be charged a fee for investment advice from a qualified professional. |
| But the bank said it would also be creating 351 new roles. | But the bank said it would also be creating 351 new roles. |
| The job cuts come on top of the 35,500 already made since the financial crisis struck in 2008. | The job cuts come on top of the 35,500 already made since the financial crisis struck in 2008. |
| The Unite union described the job losses as "brutal". | The Unite union described the job losses as "brutal". |
| Less demand | Less demand |
| The incoming Retail Distribution Review legislation puts an end to financial advisers earning commission on the products they sell to customers. | The incoming Retail Distribution Review legislation puts an end to financial advisers earning commission on the products they sell to customers. |
| From 2013, they will have to charge an up-front fee for advice instead, as part of moves towards greater price transparency in banking services. | From 2013, they will have to charge an up-front fee for advice instead, as part of moves towards greater price transparency in banking services. |
| "If you take a free service and start charging for it, fewer people are going to use it," an RBS spokesperson told the BBC, explaining the job cuts. | "If you take a free service and start charging for it, fewer people are going to use it," an RBS spokesperson told the BBC, explaining the job cuts. |
| RBS intends to continue offering fee-based financial advice to customers, whereas other banks have said they will not. | |
| In a statement, RBS said: "From 31 December 2012, customers will be charged a fee for the advice they receive from a qualified professional. | In a statement, RBS said: "From 31 December 2012, customers will be charged a fee for the advice they receive from a qualified professional. |
| "If our customers choose financial advice for investment products, the costs will be made transparent at the outset. | "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." | "As a response to this, we will be reducing the number of roles by 618 across UK and creating 351 new roles." |