Lloyds Banking Group has fully taken control of Schroders Personal Wealth, which is set to be renamed Lloyds Wealth.
This morning (October 9) it was announced Lloyds has acquired the remaining 49.9 per cent of share capital from Schroders in what was a joint venture, set up in 2019.
In exchange, Schroders has acquired the 19.1 per cent stake in Cazenove Capital, thereby re-establishing full ownership.
Schroder said it was “the right time” for SPW to transition fully to Lloyds.
Oliver Gregson, CEO of wealth management at Schroders, said: “Today’s announcement represents a meaningful step in reshaping our business and focusing on delivering our strategic ambition, building the wealth management business of the future – one that is modern, global, collaborative and truly client-led.”
He said the “evolved partnership” with Lloyds means Schroders can focus on where it can deliver the greatest.
Schroders will continue to manage and grow SPW’s customer assets and manage the Scottish Widows mandates as part of a new multi-year agreement.
While Lloyds will continue to partner with Cazenove Capital to offer its services to Lloyds’ high-net-worth customers.
Johanna Kyrklund, group chief investment officer at Schroders, said: “As SPW’s client base continues to grow, so does our responsibility to deliver consistent, long-term investment performance
“Our extended investment agreement to manage the SPW and Scottish Widows assets, alongside our ongoing referral arrangement with Lloyds, reinforces our position as a trusted partner – helping more people across the UK grow and preserve their wealth.”
The business supports around £17bn in assets under administration, on behalf of around 60,000 clients.
A statement from Lloyds said the acquisition “accelerates delivery of the group’s wealth strategy” to deepen relationships in a high value segment.
A Stock Exchange announcement from Lloyds said: “It also supports the group’s ambition to deliver an end to end wealth offering, including; execution only share dealing, self-select digital investment and pension propositions, and full financial planning with advice.
“Full ownership will allow the group to more effectively manage the existing business, whilst facilitating a seamless customer journey for existing and new customers.”
tara.o’connor@ft.com
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