Lloyds to pay SLA £140m in compensation over termination of £100bn mandate

SLA to continue managing one-third of assets

Lloyds Banking Group will compensate Standard Life Aberdeen (SLA) £140m for the attempted early termination of an investment management arrangement worth over £100bn.

In February 2018, Lloyds said it had given SLA a 12-month notice period for the termination of the arrangement as a result of a review of its Scottish Widows Wealth business due to the pair being "material competitors". However, over a year later, a tribunal found in favour of SLA and said Lloyds was not entitled to give notice to terminate the contract and SLA continued to run the mandates in the meantime. On Wednesday morning (24 July), SLA told shareholders it had reached a settlement with Lloyds. SLA said it would continue to manage around one-third (£35bn) of the total assets und...