Lloyds Banking Group is selling a 15 per cent stake in St James Place for £500m in a bid to improve its capital position.
Lloyds sold a 20 per cent stake in the firm March and agreed a 365 day “lock in” period when it could sell no more shares but advisers Merrill Lynch has agreed to waive the agreement.
The lock in will remain in place for the rest of the year, and can not be waived for at least 180 days, meaning the bank can not sell its remaining 21 per cent.
Lloyds says the sale is due to the Prudential Regulation Authority’s assessment that the bank has a capital shortfall.
The PRA found a £25bn black hole in bank balance sheets in a report published in March this year.