SCOTTISH financial services giants Royal Bank of Scotland and Standard Life have signed a deal that could see as many as one million RBS customers investing their savings via the Edinburgh insurer.
Under the five-year contract, from the beginning of December advisers at RBS will use Standard Life's wrap platform to arrange purchases of products such as investment funds for customers.
Then from 2013 RBS customers will have access to the Standard Life platform via online accounts.
The move will ensure RBS complies with the retail distribution review (RDR) from 2013, which forbids the payment of commission by product providers.
Advisers will have to agree a fee with customers in advance. A portion of the fee agreed by RBS's advisers will go to Standard Life.
Paul Matthews, chief executive for UK and Europe at Standard Life, said: "We are very pleased that RBS has chosen to partner with Standard Life to deliver RDR-ready financial solutions for its customers. This agreement further enables us to capture assets across the value chain, developing innovative investment solutions for customers which are easily accessible via our platform."
Customers can invest in RBS, NatWest and Ulster Bank investment funds with assets managed by Standard Life Investments.
Investment products including individual savings accounts (ISAs), self-invested personal pensions, onshore and offshore bonds will be available to RBS, NatWest and Ulster Bank customers.
The deal is key for Standard Life because chief executive David Nish has avoided the drive into Asian markets favoured by rivals Prudential to focus on opportunities thrown up by UK regulatory changes.
Les Matheson, managing director for products and marketing at RBS UK Retail said: "With Standard Life's proven capability in platforms and investment management we're well placed to help our customers with their financial planning."
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