Standard Life Aberdeen Settles Arbitration With Lloyds Banking/Scottish Widows

(RTTNews) - Standard Life Aberdeen plc (SLA.L) said Wednesday that it has agreed to a final settlement with Lloyds Banking Group/Scottish Widows related to the arbitration proceedings regarding Lloyds Banking or LBG's attempt to terminate investment management arrangements under which assets are managed by members of the Standard Life Aberdeen group for LBG entities.

The arbitral tribunal in its decision of March 2019 found that LBG was not entitled to terminate these investment management arrangements.

The SLA Group noted it has continued to manage assets under management or AUM of about 104 billion pounds as at 30 June 2019 for LBG entities during the period of the dispute.

The SLA Group will continue to manage approximately one third of the total AUM, about 35 billion pounds, on behalf of LBG entities until at least April 2022, the end of the initial term under the original investment management agreements.

The remaining, or about two thirds of the total AUM, will be transferred to third-party managers appointed by LBG through a series of planned tranches over the next nine months.

The SLA Group will receive an upfront payment of 140 million pounds from LBG as final settlement to compensate for loss of profit in relation to the Transferring AUM.

The SLA Group noted that the settlement resolves all outstanding contractual differences between the two parties, who will continue their commercial relationship that is focused on delivering beneficial outcomes for customers.