Standard Life Aberdeen considers next steps after Lloyds defeat

Standard Life Aberdeen has successfully challenged the decision of Lloyds Banking Group to terminate a £100 billion mandate that the asset manager runs for Lloyds’ subsidiary, Scottish Widows.

A tribunal has ruled in favour of Standard Life Aberdeen and said Lloyds Banking Group was not entitled to give notice to the asset manager on February 14 last year.

Lloyds Banking Group had wanted to terminate the mandate and potentially give it to Schroders on competition grounds following the Aberdeen Asset Management merger with Standard Life, a rival to Scottish Widows.

Standard Life Aberdeen is now “carefully considering” the terms of the decision and next steps but is still managing the assets for now.

Bank of America Merrill Lynch said the asset manager could continue to manage the assets until the mandate legally expires – thought to be in 2022 – or be compensated by Lloyds if a transfer is agreed.

No material amount of assets has been withdrawn, the Standard Life Aberdeen said.

Keith Skeoch, the chief executive of Standard Life Aberdeen, said: “Now that the arbitration panel has ruled in our favour, we will carefully consider our next steps, working constructively with LBG [Lloyds Banking Group] to bring the matter to resolution.”

©2019 funds europe

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