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Lloyds targets financial planning and pensions in three-year plan

Lloyds Banking Group will boost its financial planning and retirement open book assets by more than £50bn by 2020 and is targeting more than one million new pension customers.

The group, which includes pension provider Scottish Widows, unveiled its new three-year strategy this morning.

The strategy talks of “maximising the group’s capabilities” by increasing financial planning assets. It also says it will bring in a financial planning and retirement offering with a “single customer view”.

Lloyds is to spend more than £3bn on the strategy, which also includes making its services more digital, and investing in its staff and customer service.

Hargreaves Lansdown senior analyst Laith Khalaf says: “The Government’s auto-enrolment programme is now largely in the rear view mirror, which means Lloyds will have to pinch these new [pensions] customers off someone else, so it will have to sharpen up its toolkit.”

Khalaf adds: “One would expect Scottish Widows to play a pivotal role in this pensions land grab, which lends some context to the recently announced prospective withdrawal of £109bn of assets from Standard Life Aberdeen.”

Last week, Standard Life Aberdeen shares fell 6 per cent on news Lloyds decided to end investment management arrangements with the asset manager on £109bn of assets.

Reports emerged this week that a breakdown in talks between Scottish Widows and Standard Life to merge their life and pension businesses led to the high-street lender pulling the assets.

Lloyds Banking Group chief executive António Horta-Osório says: “The external environment is evolving rapidly and I am confident that this exciting and ambitious plan, with the significant additional investment, will mean we remain at the forefront of UK financial services, and continue to deliver our mission of helping Britain prosper.”

In October last year, Lloyds bought Zurich’s UK workplace pensions and savings business.


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There are 4 comments at the moment, we would love to hear your opinion too.

  1. we are all quaking in our boots….. not

  2. So Lloyds Banking Group wants to return to giving financial planning and retirement advice. Really!

    Laith Khalaf of Hargreaves Lansdown says that they’ll have to sharpen up their toolkit – no s**t Sherlock! No doubt they’ll go for a lightweight tick-box ATR solution that simply ticks boxes rather than properly evaluate client need-for-risk. And then, over a period of time, without insightful MI or analytics, all those mis-sold investments will start to reveal themselves to the world at large and eventually the regulator and finally, Lloyds Banking Group will pull out of financial planning – for a time.

    History repeats itself!

  3. Number of question’s Antonio has ask himself

    What do Lloyds mean by Financial Planning and how will we explain it to our clients/customers

    Is my objective to gathering assets under management or is it a mixture of true holistic financial planning/advice and recommendations to meet goals and objectives.

    What process should we develop for our financial planning. Will it be Lloyds own “in-house version”

    Should we consider other structures if so will it be Certified Financial Planner or a Chartered Financial Planner?

    Should Lloyds be having discussions with the Professional Bodies Jackie Lockie CISI or Keith Richard at the PFS for guidance which and then decide the best coarse of action.

    No sod it as always Lloyds will do it our way If it goes wrong we have all the money to pay for our mistakes After all we too big to fail and investors seem not to mind the millions we paying out on PPI

    Hang on one point most of our experienced advisers have left who is going to take their place.

    Sod it let’s forget the title Financial Planning and call our selves Life Insurance Pensions and Investment Sales advisers.

    Much simpler than competing against professional financial planners and at least it is transparent post RDR

  4. £50 billion within 2 years? I am sure that they will put the clients interest first when seeking to achieve that target.

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