The beleaguered mutual released the findings of a strategic review two weeks ago. It concluded that while the company was doing well it would be in its interest to ensure a floatation on the Stock Exchange.
John Ellis, head of public affairs at the LIA, said: “I think brokers should treat the situation as if nothing has changed. Standard Life are clearly taking steps in the right direction and they are still a very sound company.”
Ellis went on to predict that the mutual’s mortgage lending arm, Standard Life Bank, could be sold. It currently acquires 70 per cent of its business from intermediaries.
A spokesman for Standard Life Bank though denied it was up for sale. “We are an important part of Standard Life and are planning to expand rapidly, and our lending arm offers fantastic cross-selling opportunities for the other parts of the organisation,” he commented.
He went on to say that the Bank had been singled out in the strategic review as one of the best performing parts of the organisation. He said: “We intend to accelerate our business plans and bring forward our targets.”
Reacting to Standard Life’s announcement Adrian Coles, director-general of the Building Societies Association (BSA), said: “All 63 building societies in the UK are committed to remaining mutual. Mutual life offices have continued to show that mutuality is not only a viable business model, but one which delivers real benefits to members.”
