Schroders and Lloyds are set to bring a new financial planning business to the market named Schroders Personal Wealth as part of their wealth management joint venture that will begin accepting clients later this year, the companies have revealed.
Last October, Lloyds and Schroders revealed they were joining forces to launch a new financial advice business, which would aim to become a top-3 financial planning businesses for assets in the next five years.
The new business will be open to existing Lloyds Bank Private Banking and Bank of Scotland Private Banking eligible customers from June, and then to the wider market in the final quarter of 2019. It will offer financial planning services to wealth UK customers, with its service underpinned by Benchmark Capital's technology to facilitate ease of use.
The UK wealth management market is growing, and pension freedoms mean that the responsibility is shifting to the individual. This means more people than ever need help as they plan for their futures. We can play a role in helping address the need for financial planning with a clear and transparent service"
The new company will target affluent UK customers, and will use Benchmark Capital's technology. Benchmark is owned by Schroders. People will need at least £100,000 in investable assets to use Schroders personal wealth services.
James Rainbow, chief executive designate of Schroders Personal Wealth, said: "I am extremely excited to announce that Schroders Personal Wealth will launch later this year.
"The UK wealth management market is growing, and pension freedoms mean that the responsibility is shifting to the individual. This means more people than ever need help as they plan for their futures. We can play a role in helping address the need for financial planning with a clear and transparent service.
"The backing of the country's largest banking group and the number one investment brand gives us access to resources and expertise that will help us serve our customers better and make their money work harder for them."
Lloyds will own 50.1% of the new business, with Schroders owning the remainder.
The venture marks the first time Schroders has moved into the mass affluent UK financial planning market. Its Cazenove brand provides advice to high-net worth customers.