The Scottish company said that, to ensure this, it has put in place “precautionary measures” which include planning for new regulated companies in England to which it can transfer parts of its business if the country’s constitution was to change.
The ‘continuity’ measures are also designed to ensure that all customers outside of Scotland continue to be covered by existing consumer protection and regulatory arrangements and can still operate transactions in sterling.
“Standard Life has a long history in Scotland, a heritage of which we are very proud, and we hope that this continues,” said chief executive David Nish. “But our responsibility is to protect the interests of our customers, our shareholders, our people and other stakeholders in our business.”
“Additional measures”
He added that the company will consider additional measures once “further clarity and certainty is received,” adding that there will be no change to the way in which dividends are paid to shareholders.
This comes after Nish wrote in his February chief executive’s statement that the company had “started work” to establish additional registered companies to operate outside Scotland as a precautionary measure to ensure the “continuity of [its] businesses’ competitive position and to protect the interests of [its] stakeholders”.
Echoing Standard Life’s concerns, Ian Forrest, investment research analyst at share administration provider The Share Centre, said today that Scottish independence would create concern in UK markets over a “potentially long period of uncertainty” as the Scottish government negotiates with Westminster over key issues.
“Central to the discussions would be the currency to be used by an independent Scotland, the amount of UK debt to be assumed, and the future of Trident,” he said. “We do expect that major financial groups such as Royal Bank of Scotland, Standard Life, Aberdeen Asset Management, and Lloyds Banking would move their headquarters to London.
He added that even a close vote against independence could create financial implications, as markets fear another vote in a few years.
“Investors could end up paying twice”
Last week, Richard Leeson, chief executive at Adviser Advocate, and former sales and marketing director at Axa Wealth International, told International Adviser that the possibility of Scotland’s independence has created uncertainty surrounding the way in which onshore bonds will be taxed.
“There will be a shortfall if UK insurers continue to collect tax on Scottish products,” he said. “However, Scotland could potentially charge a source tax, regardless of an investor’s UK contributions, meaning investors could end up paying twice.”
