Standard Life advice business 1825 is to advise non-advised clients of provider Phoenix, according to a report released by the investment giant today.
Standard Life Aberdeen announced in February it was selling its insurance arm to Phoenix in a £3bn deal.
The circular says the “transferring group”, described as the Standard Life Assurance business following the company being restructured, will refer non-advised customers seeking advice exclusively to 1825.
Through the arrangement, 1825 will be the “preferred adviser” to customers post-completion of the sale to Phoenix.
The circular says: “The strategic partnership with the Phoenix Group provides an opportunity for Standard Life Aberdeen to offer relevant products and services to the enlarged Phoenix Group’s 10 million customers.”
It adds: “This includes, for example, offering financial advice services to non-advised customers through 1825 and the development of our direct-to-consumer capabilities for the enlarged Phoenix Group customers.”
The circular also includes details of Standard Life Aberdeen’s strategy and plans, including the introduction of a different operating model, which is expected to deliver at least £100m of annual cost savings by the end of 2020.
The agreement gives Standard Life Aberdeen right of first refusal for investment management mandates on new assets that Phoenix acquires in the future.
It also gives Standard Life Aberdeen the potential to manage more of Phoenix’s existing investment mandates in the future and the opportunity to offer relevant propositions and services including advice to Phoenix’s 10 million customers.
The release of the circular comes amid an ongoing legal dispute between Standard Life Aberdeen and Lloyds.
Lloyds pulled more than £109bn of assets away from Standard Life Aberdeen in February citing a material competitor clause.
However, in a stock exchange announcement earlier this month, Standard Life Aberdeen announced it and Lloyds are in dispute resolution over the legal ramification of withdrawing the funds.