Lloyds Banking Group has hit back at Standard Life Aberdeen, saying the claim that the firms are not in competition with each other was “not credible”.
Standard Life Aberdeen is resisting the decision by Lloyds to terminate a large investment mandate which it invests for a Lloyds Banking Group subsidiary, Scottish Widows.
The firm has contested the Lloyds decision to pull the Scottish Widows portfolio, saying Lloyds had no right to terminate the investment management agreements.
In February Lloyds Banking Group gave Standard Life Aberdeen 12 months’ notice that it was ending its Scottish Widows contract.
Scottish Widows and Standard Life were longstanding rivals, meaning Lloyds considers the newly created Standard Life Aberdeen a material competitor to Scottish Widows.
Scottish Widows was also Standard Life Aberdeen’s biggest client and its funds represented around 17% of assets under management, and 5% of revenues.
Standard Life Aberdeen said it informed Lloyds Banking Group that “it does not agree” that it was in material competition in the UK.
It added that the parties were engaging with each other within the framework of the dispute resolution process.
Lloyds Banking Group said it was “disappointed” and “surprised” by SLA’s course of action particularly in the light of its position as a major customer.
In a statement the company said: “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.”
It added: “We are confident of our legal position and that our actions are in the best interests of our customers.”
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