Resolution has set out plans to ditch its externally advised operating structure in a move which will protect the company’s premium listing on the London Stock Exchange.
The restructure will see the boards of Resolution Operations LLP (ROL), which provided advisory services in relation to mergers, acquisitions and group strategy, and Friends Life merged.
ROL will be paid a fee of £7.5m when the operating agreement ends on 27 March 2013.
The changes to the board structure, which are subject to shareholder approval, are expected to be completed in March next year. No shareholder approval is required for the change in operating structure.
In January, the FSA set out plans to prevent firms which are managed by an offshore advisory company from having a premium listing on the LSE. This is similar to the structure currently used by Resolution.
The rules are set to come into force in January 2014.
Resolution says: “The revised agreements and structure will ensure there is no risk to the company’s premium listing from the new FSA regulations regarding “externally managed companies” which, for existing externally advised companies, come into effect from 1 January 2014.”
The decision also marks the end of Resolution’s pursuit of acquisitions or a specific exit event for Friends Life, such as a sale of the business or a stock market listing.
Resolution chairman Mike Biggs says: “These are a comprehensive and positive set of developments for Resolution, implementing the changes we announced in August and delivering a saving for shareholders against the current contractual position.
“We are pleased that Andy Briggs will join the board as group chief executive and that Clive Cowdery will join the board and continue to play an active role in the strategic development of the company.”