Schroders has confirmed it is in discussions about a wealth management partnership with Lloyds Banking Group.
The FTSE 100 asset manager, which manages nearly £450bn, issued a statement in response to speculation it had won a mandate to manage £109bn of assets for Lloyds.
While Schroders did not directly comment on whether it had actually won this mandate, it confirmed discussions were taking place.
The company stated: "Following recent media speculation, Schroders PLC confirms that it is in discussions with Lloyds Banking Group PLC with a view to working closely together in parts of the wealth sector.
"Discussions are ongoing and there can be no certainty that these discussions will lead to any formal arrangement being entered into. A further announcement will be made when appropriate."
Last week there was media speculation about the fact Schroders had beaten BlackRock to manage the £109bn of assets, with Lloyds taking some control of the Cazenove wealth management business owned by Schroders.
Schroders and BlackRock were two of four firms, alongside JP Morgan and Goldman Sachs, which put in a bid to run the assets.
The assets, which are part of the Scottish Widows business, had originally been managed by Aberdeen Asset Management before it merged with Standard Life.
In February Lloyds Banking Group decided the Aberdeen and Standard Life merger meant its assets were being managed by a competitor, and stripped them from Aberdeen Standard Investments.
Aberdeen Standard continues to dispute the right of Lloyds to remove the assets.
damian.fantato@ft.com
