EU could force Lloyds to sell Cleri Med or Scot Wids

Lloyds Banking Group has warned that the the European Commission could force a restructuring of the business, meaning it could be required to sell Scottish Widows or Clerical Medical, due to its receipt of state aid.

Press reports say Clive Cowdery’s consolidation vehicle Resolution could revive its interest in Clerical Medical and Scottish Widows if Lloyds was forced to dispose of assets by Europe.

In a announcement to shareholders, Lloyds said that in order to qualify for receipt of state aid via the asset protection scheme, it expects to agree a forward plan for European Commission approval which would involve “the cessation or disposal of certain parts of the business”.

It goes on to say: “The group’s participation in the Government asset protection scheme will also be subject to obtaining regulatory clearances and state aid clearance from the European Commission for the scheme.

“It is currently uncertain whether such state aid clearance will be obtained and, if it is obtained, it may require the group to undertake a restructuring which may be materially adverse to the interests of the group.”

A spokesman for the group adds: “We are working closely with the Government on this issue. We believe that the success of our company is in the interests of our shareholders but also the stability of the UK banking system as a whole. We are already working towards a situation where state aid is no longer required.”

A Resolution Limited spokesman says: “We have said that we would look at any life assurance or asset management assets that come up for sale. At the moment, we do not know whether Clerical Medical or Scottish Widows will be up for sale. This is very speculative.”


Law of attraction

As a recruiter in a specialised professional services industry, you have to keep a keen eye on the changing face of the workplace and regulated financial services gives you plenty to think about.

Lloyds slashes 625 jobs

Lloyds Banking Group is axing 625 jobs after the merging of its corporate and small-business lending divisions. Jobs will go from sites in Scotland, England and Wales. The group says it will create 300 positions in its new wholesale banking department and try to redeploy some staff.

Active managers ‘add value’

Octopus Investments has warned it may be tougher to manage its multi-manager Omnis funds within their cost caps because irrational markets are likely to increase the need for active managers.

Sticking to valuation discipline when investing in China

Journalist Alexis Xydias discusses the opportunities – and potential pitfalls – of investing in China with Artemis fund manager Peter Saacke. With Peter holding significant positions in China in the Artemis funds he manages, journalist Alexis Xydias quizzes Peter on the risks of investing in Chinese stocks – including over-valuations, margin trading and financial reporting issues. Click here for video


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm