HSBC is reducing the headcount of its advice arm as part of its response to the retail distribution review (RDR), with 2,217 people set to leave the UK bank during the coming months, the bank said in a statement.

The reduction of 3,167 roles in the UK, said the bank, follows the group's announcement last year that by the end of 2013, there would be around 30,000 fewer roles within the bank worldwide.

"We have taken the difficult decision to restructure HSBC in the UK in order to reduce layers of management and bureaucracy," said Brian Robertson (pictured), chief executive of HSBC Bank Plc. "These changes will enhance our efficiency as detailed in the strategy we announced last May and they will also help ensure our continued profitability in the face of the changing regulatory landscape."

The bank blamed "fundamental changes to the regulatory framework" in the UK and "the growing capital requirements imposed on banks" as the underlying causes for the restructure of the business, as the cost of providing banking services in the UK will increase.

The restructuring of the UK bank follows last year's announcement when the bank said 460 of its tied advisers would be made redundant. The bank said then that it expected the RDR to lead to a drop-off in consumer demand for financial advice.

"The forthcoming introduction of the Retail Distribution Review in January 2013 will have a major impact on the bank's UK business," it said. "Around a quarter of all the people impacted by today's changes are in anticipation of the likely impact on business levels caused by the Retail Distribution Review."

As reported, Barclays closed its Barclays Financial Planning unit and no longer offers financial advice through its retail branches in the UK, as it was deemed no longer commercially viable after a review.

However, other banks such as Lloyds have opted for a different stance. Lloyds Banking Group said it will relaunch its branch advice service in a move to exploit the advice gap created by the RDR. Lloyds bancassurance will be split in two with 'financial consultants' offering only protection and diploma-qualified 'financial advisers' who will offer protection and investment products.

HSBC will keep its whole of market IFA arm but will close its tied advice offer completely.