Standard Life Aberdeen fights Lloyds over partnership termination

In February, Lloyds Banking Group terminated its partnership agreements with Aberdeen Asset Management, stating a clause in its contract which enabled the firm to terminate in the event that Aberdeen was "subject to a change of control with a material competitor".

After the merger completed, Scottish Widows said "no agreement has been reached" which addressed the competition issue.

However Standard Life Aberdeen says it "does not agree" that it is in material competition with Lloyds, and therefore "does not consider that LBG, Scottish Widows or their respective affiliates has the right to terminate" the arrangements.

In a statement released today, Standard Life Aberdeen said the two parties "are engaging with each other within the framework of the dispute resolution process" in the contract.

A Scottish Widows and Lloyds Banking Group spokesperson said: “We note and are disappointed by the comments made by Standard Life Aberdeen, particularly in the light of our position as a major customer.

"Standard Life Aberdeen is a clear and material competitor of Scottish Widows and Lloyds Banking Group in the UK and to suggest otherwise is not credible.

"As a result, Scottish Widows and Lloyds Banking Group had the right to terminate the contracts with Standard Life Aberdeen and we acted accordingly by serving notice on February 14.

"In any event, management of the funds in question would have ended formally under the terms of the contracts in March 2022.

"We are confident of our legal position and that our actions are in the best interests of our customers, and we are therefore surprised at the course of action pursued by Standard Life Aberdeen.”