Edinburgh-based financial services giant Standard Life has written to investors and customers to elaborate on plans to shift assets south of the border in the event of a ‘yes’ vote in next week’s Scottish independence referendum.
In a statement published online, the firm confirmed “precautionary measures” to ensure “customer continuity”, including plans for new regulated companies in England into which “pensions, investments and other long-term savings held by UK customers” will be transferred.
A statement from chief executive David Nish also appeared to refuse to commit the firm to having its main base north of the border after the vote, which some will see as leaving open the door for a more formal exit.
He said: “Standard Life has a long history in Scotland – a heritage of which we are very proud and we hope that this continues but our responsibility is to protect the interests of our customers, our shareholders, our people and other stakeholders in our business.”
Mr Nish added that during the 18 months after a hypothetical ‘yes’ vote ahead of independence being declared, it would provide regular updates and take “whatever action is required to protect our customers’ interests and maintain our competitiveness in the markets in which we operate.”
This comes on the day FTAdviser sister title the Financial Times reported that asset managers, investors and pension savers have begun moving money out of Scotland amid rising concerns about the financial consequences of a ’yes’ vote.
In a further sign of nerves, the paper said “exit clauses” are being inserted into commercial property contracts in Scotland to allow buyers to scrap deals or renegotiate prices if voters opt for independence, according to leading advisers to the sector.
Earlier this year Mr Nish said that Standard Life had taken the “precautionary measure” of establishing additional registered companies outside of Scotland, “into which it could transfer parts of its operations if it was necessary to do so”.
In its latest statement the company said the transfers would ensure:
• all transactions with customers outside of Scotland continue to be in sterling;
• all customers outside of Scotland continue to be part of the UK tax regime; and
• all customers outside of Scotland continue to be covered by existing consumer protection and regulatory arrangements.
Mr Nish confirmed that Standard Life will continue to be listed on the London Stock Exchange and there will be no change to the way in which share dividends are paid to shareholders.
