British asset manager Schroders and Lloyds have confirmed plans to launch a wealth management joint venture by the first half of next year.

Under the agreement, Lloyds will move around £13bn of assets and associated advisers from its wealth management operations to the venture.

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Furthermore, the bank will take a 19.9% stake in Schroders’ UK wealth management business Cazenove Capital and transfer around £400m of its private client assets to Cazenove.

As part of the agreement, Schroders also secured a mandate to manage £80bn of Scottish Widows and Lloyds insurance and wealth assets.

Schroders group CEO Peter Harrison said: “In combining our award-winning technology and world-class investment expertise with Lloyds’ significant client base and digital capabilities, we are creating a strategic partnership which is exclusively focused on the evolving needs of UK savers and investors.”

Lloyds will hold a 50.1% stake in the new joint venture, while Schroders will own the remainder. The two companies started talks on setting up the venture earlier this month.

The venture will be led by James Rainbow and Antonio Lorenzo as CEO and chairman, respectively. Both the appointments are pending regulatory nod.

Rainbow currently serves as the co-head of UK intermediary at Schroders. Lorenzo serves as the CEO of Scottish Widows and the group director of insurance and wealth.

“The aim is to become a top three UK financial planning business within five years, given the significant growth opportunities in the financial planning and retirement market combined with the new company’s ambitious medium term growth strategy,” Lorenzo noted.