Lloyds and Schroders to launch wealth advice proposition

The new financial planning venture will be aimed at affluent customers and aims to commence activities by the end of H1 2019. Lloyds will own 50.1% of the share capital and Schroders the remaining 49.9%.

As part of the deal, Lloyds will appoint Schroders as the active investment manager of approximately £80 billion of Scottish Widows and Lloyds insurance and wealth related assets.

This includes the transfer of approximately £13 billion of assets and associated advisers from its existing wealth management business to the joint venture, and a further £400 million to Schroders' UK wealth management business.

Lloyds will also receive up to a 19.9% investment in the holding company of Schroders' UK wealth management firm.

From completion, Antonio Lorenzo, CEO of Scottish Widows and group director of insurance and wealth will become chairman and James Rainbow, Schroders' co-head of UK intermediary, will be the firm's CEO.

Lloyds says the partnership will also accelerate the development of its financial planning and retirement business.

Both firms say they see "significant growth opportunities" in the financial planning and retirement market and will aim to become a top three UK financial planning business within five years.

António Horta-Osório, group chief executive of Lloyds, said: "I am delighted to be announcing this exciting partnership with Schroders and the creation of a new market leading wealth management proposition. This provides a strong platform for growth and is a further step in the delivery of our strategic objectives."

Peter Harrison, group chief executive of Schroders, added: "Wealth management is a strategic priority for Schroders. In combining our award-winning technology and world-class investment expertise with Lloyds' significant client base and digital capabilities, we are creating a strategic partnership which is exclusively focused on the evolving needs of UK savers and investors. I am also delighted that we have been entrusted to manage £80 billion of assets for Lloyds' and Scottish Widows' clients."