Lloyds plans to hire more than 700 advisers as it builds on last year’s strategic tie-up with Schroders and hopes to nearly double its private client assets from £13 billion to £25 billion.
The two businesses announced a joint venture in October 2018 with 50.1% of equity held by Lloyds, which took a further stake in Schroders’ Cazenove Capital division. That followed the award of £80 billion of the giant Lloyds pension mandate withdrawn a year ago from Standard Life to Schroders.
Speaking to the FT, a person close to the strategic planning said much of the growth would be organic as the bank, the largest on the UK high street, marketed its services to current and corporate account customers.
They added the business would also be ready to hire or purchase on a targeted basis, however.
‘The challenge is you could be paying a lot up front for quality advisers,’ they told the FT. ‘There is very high competition for talent, it’s [already] at the high end of normal at the moment and that’s having an impact.’
The plans are still being finalised but the joint venture is likely to lean harder on the Schroders name than Lloyds, to increase its appeal both to potential clients and advisers.
The bank was also keen to establish the venture as an independent entity because of a long-standing reluctance on the behalf of wealth managers and advisers to work for large banks. Around 300 advisers will initially transfer from Lloyds.
Santander and Citi are among the banking majors who have recently declared wealth management to be a key plank of their expansion plans as they seek steadier and more diversified streams on income.
The joint venture is scheduled to launch by the middle of this year. Antonio Lorenzo (pictured), chief executive of Scottish Widows and group director of insurance and wealth, is to chair the business, while James Rainbow, Schroders' co-head of UK intermediary, will be chief executive.
Lorenzo said: 'The unique combination of two of the UK's strongest financial services businesses will enable us to create a market-leading proposition, which will benefit customers.
'The aim is to become a top three UK financial planning business within five years, given the significant growth opportunities in the financial planning and retirement market combined with the new company's ambitious medium-term growth strategy.'