Standard Life Aberdeen plc (SLA) on Wednesday announced details of its settlement with Lloyds Banking Group (LBG) and Scottish Widows in relation to arbitration proceedings over LBG’s decision to cancel a £104 billion asset management contract with SLA.

Standard Life Aberdeen will continue to manage £35 billion of the assets and will receive £140 million from LBG to compensate for the loss of profit involved in managing the assets.

“In its decision of March 2019, the arbitral tribunal found that LBG was not entitled to terminate these investment management arrangements,” said Standard Life Aberdeen.

“The SLA Group has continued to manage approximately £104 billion (as at 30 June 2019) of assets under management for LBG entities during the period of the dispute.”

Under the terms of the settlement:

• Standard Life Aberdeen will continue to manage £35 billion, one third of the £104 billion, until at least April 2022
• Two thirds of the £104 billion will be transferred to third-party managers appointed by LBG through a series of planned tranches over the next nine months.
• Standard Life Aberdeen will receive £140 million from LBG as final settlement to compensate for loss of profit in relation to the management of the assets.