Lloyds Banking Group PLC (LON:LLOY) is set to pay Standard Life Aberdeen £140mln to settle their dispute over a £100bn fund management contract.
The bank scrapped the contract when Standard and Aberdeen merged but a tribunal in March ruled there were no grounds for that action.
Lloyds claimed the merger meant there was a conflict of interest with its Scottish Widows life and pensions arm, which had been using Aberdeen to manage the mandate.
Terms of the settlement are still to be finalised according to the reports but are said to include provision for SLA to manage £30bn of funds for Lloyds until 2022 when the original contract was due to expire.
An announcement is expected to be made later this week.
On a separate issue, Standard has been fined £30.8mln by Britain's financial watchdog for failures related to annuities sold without financial advice.