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Standard Life Aberdeen confirms Lloyds Bank to pay £140mln to settle fund dispute

The bank cancelled the £104bn contract when Standard Life and Aberdeen merged

Aberdeen
Payment will cover loss of earnings from the contract

Standard Life Aberdeen PLC (LON:SLA) has confirmed it will receive £140mln for loss of earnings from Lloyds Banking Group PLC (LON:LLOY) as settlement of their fund mandate dispute.

The bank scrapped the £104bn contract when Standard Life and Aberdeen merged saying it had created a conflict of interest with its Scottish Widows arm.

A tribunal in March though ruled that Lloyds was not entitled to cancel the arrangement.

As well as the financial payment, terms of the settlement will see Standard Life manage £35bn of Lloyds funds until April 2022. 

The remaining two-thirds of the assets will be transferred to other managers over the next nine months.

Keith Skeoch, Standard Life’s chief executive, said the settlement represented a fair and positive outcome for both parties. 

“The retention of assets in our passive strategies as well as active real estate portfolios positions us to benefit from scale and growth."

Quick facts: Standard Life Aberdeen PLC

Price: 208.9 GBX

LSE:SLA
Market: LSE
Market Cap: £4.66 billion
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