Schroders and Lloyds are in discussions over a wealth management joint venture.
A Schroders spokeswoman says: “Schroders confirms that it is in discussions with Lloyds Banking Group with a view to working closely together in parts of the wealth sector.”
She says: “Discussions are ongoing and there can be no certainty that these discussions will lead to any formal arrangement being entered into. A further announcement will be made when appropriate.”
Sky News reports the deal could see Lloyds owning 50.1 per cent of the new joint venture, with Schroders owning the remainder.
The news follows reports this month that Schroders is set to take control of a contested £109bn investment mandate after Scottish Widows parent Lloyds pushed Standard Life Aberdeen off the funds.
Sky also reports the Lloyds and Schroders alliance would also involve Lloyds taking a 19.9 per cent stake in Cazenove Capital, the high-net worth wealth manager.
The report clarifies that Cazenove Capital would not be “directly involved” in the proposed wealth management joint venture.
In February, Lloyds outlined intentions to boost its financial planning and retirement open book assets by more than £50bn by 2020.
It also said it is targeting more than one million new pension customers.