LBG’s market share decline in the UK structured products market over 2013 was aggravated by the recent fine from the UK Financial Conduct Authority (FCA) imposed to Lloyds TSB Bank and Bank of Scotland (both part of LBG) for serious failings in their controls over sales incentive schemes for investment and protection products. “This is only available to private banking customers.” “Lloyds Bank Private Banking offers capital protected structured deposits on a non advised basis,” she said.

“It is tough pitching for deposit business when you don’t need deposits! With SWIP being sold off, who knows whether we will see retail product, but in the short term I very much doubt we will see anything outside its own distribution.”Īn LBG spokesperson told SRP that Lloyds Bank and Halifax do not offer structured products, and that only Lloyds Bank Private Banking will currently selling structured products, although she did not clarify the Group’s plans going forward. “They don’t actually have a derivatives business, so products would either be deposits, swapped with external counterparties and then offered to third parties, or alternatively internal trades of for the group,” he said. The number of structured products issued by Lloyds Banking Group (LBG) in the UK market in 2013 reached its lower level in years with only three products recorded by SRP’s database following a period of declining activity. According to SRP, LBG’s issuance in the UK market has significantly decreased over the last three years with 14 products marketed in 2012 and 26 structures in 2011.Ī UK market source who wished to remain anonym told SRP that Lloyds has been pretty inactive in the retail space for the past few years, and that one of the big issues LBG has faced is the lack of internal demand for funding, which seems to have been even more dramatic than other banks. The future of Lloyds Banking Group’s (LBG) structured products business is not clear following a year of marginal activity in the UK market.

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