Last week Lloyds announced a landmark tie-up with Schroders with the new JV aiming to be in the top-3 financial advice businesses for assets in the next five years.
At an analyst question and answer session following the publication of Lloyds' thrid quarter results last week the bank’s chief finance director George Culmer said there will be a large transfer of personnel from its own ranks to the JV.
‘We have got about £13 billion of assets which we will move over [to the JV]. We will also transfer over our 300 or so advisers into this.'
Culmer said in addition to transferring assets and advisers from Lloyds’ wealth management arm, the bank would consider making acquisitions.
‘In working with Schroders we are massively excited in terms of similar views of culture, similar views of ambition and we have talked about wanting to be a top three within five years. Already [we are] about number four-or-five at the £13 billion.’
‘To get to that top three, I think we would have to be at the sort of £25 billion type size for assets under administration,’ he said. ‘We see that as a very viable target. We would be open to inorganic [growth] through this JV as well in terms of getting there. But as I say, we have big ambitions for this and we have massive excitement about the opportunity.’
He added Lloyds would use referrals from its own 25-30 million customer base to gain more financial advice customers. The new JV will use the platform Fusion Wealth through Schroders-owned Benchmark Capital. As New Model Adviser® reported earlier this week, the JV will offer restricted advice.
In August New Model Adviser® revealed Lloyds was planning a direct-to-consumer investment launch which would use BlackRock funds.
Culmer said last week that Lloyds, as well as the new financial advice venture, is building a digital, execution-only offering for the mass, market which the bank is building in-house. Last month Lloyds announced a partnership with BlackRock which would see the passive giant manage a £30 billion Scottish Widows mandate.
At the other end, Lloyds also has a stake in Cazenove which will provide wealth management for its high-net worth clients.