Lloyds TSB Delays Launch Of Mass Affluent Service

by Carla Johnson, InvestorsOffshore.com

01 June 2001

The Lloyds TSB group has postponed the launch of Create, its new wealth management brand. Originally scheduled for this summer, Lloyds TSB has informed InvestorsOffshore.com that, due to recent equity market volatility, Create will be on offer to its affluent and high net worth clients from October onwards when the markets are expected to provide a more favourable climate for investment.

Create is a key component of Lloyds TSB's revenue growth strategy and aims to establish a customer base of around 250,000 clients by the end of 2002. In a statement released by Lloyds TSB, Peter Ellwood, group chief executive, explained: 'The demand for wealth management services is growing rapidly and the launch of Create will enable us to seize the opportunities this presents. This expansion of our wealth management service is central to our overall revenue growth strategy and we aim to double profits from this market in four years from launch.' Lloyds TSB currently makes some £300 million per annum pre tax profit from wealth management.

Create's services range from full-service independent investment management to an on-line financial investment market for those wanting to control their own investments. A key feature will be the Create Wealth Management account that enables consolidation of all financial products into a single account.

Clients will also have access to comprehensive global broking service, Goldman Sachs PrimeAccess, which will provide clients with customised proprietary research, international equity dealing and market-making, custody and settlement and access to selected equity capital market offerings lead managed by Goldman Sachs.

Laurel Powers-Freeling, Managing Director, Wealth Management, Lloyds TSB, said: 'Our range of advisory options, breadth of product, quality dedicated service, physical and remote accessibility and access to the premier broking service of Goldman Sachs PrimeAccess, will allow us to meet client needs in a way that is exceptional amongst UK wealth managers. Create will have the independence, depth, scale and quality to deliver genuinely tailor-made services to each and every affluent individual.'

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