Lloyds and SLA clash over scrapped mandate

Friction flared between Lloyds Banking Group and Standard Life Aberdeen yesterday when thefundmanagerdisputedthe bank’s right in February to terminate its mandate to run £109 billion of assets for Lloyds and its Scottish Widows business.

SLA said in a statement: “SLA has informed LBG that it does not agree that, following the merger of Aberdeen Asset Management PLC and Standard Life plc, SLA was in material competition in the UK with LBG and that, therefore, SLA does not consider that LBG, Scottish Widows or their respective affiliates has the right to terminate the IMAS (investment management arrangements).

“The parties are engaging with each other within the framework of the dispute resolution process envisaged in the IMAS.”

A Lloyds spokesman hit back that the bank was “disappointed” by SLA’S stance, and that it was “not credible” to suggest SLA was not a material competitor.