An LCIA Tribunal has ruled that Lloyds Banking Group was not entitled to terminate a mandate with Standard Life Aberdeen to manage assets worth in excess of £100 billion.
In 2014 Lloyds had granted a mandate to Aberdeen Asset Management to manage the assets when Aberdeen bought the Scottish Life Investment Partnership business from Lloyds. In 2017 Aberdeen merged with Standard Life to create Standard Life Aberdeen. Lloyds claimed that the merger triggered a clause which entitled it to terminate on the basis that the merged group was in material competition with Lloyds Banking Group. The Tribunal rejected Lloyds’ argument and held that its purported termination notice was invalid.
Mark Howard QC, instructed by Slaughter and May, acted for Standard Life Aberdeen.