Standard Life ‘votes’ to remain in EU

Gerry Grimstone, chairman of Edinburgh-based insurance giant Standard Life, has called for the UK electorate to reject calls to leave the European Union, saying it would be damaging to the UK economy if a Brexit occurred.

The intervention came just as prime minister David Cameron announced that a referendum on EU membership is to be held on 23 June.

In an open letter, Mr Grimstone stressed that while the business is non-political, it is the group’s responsibility to use its voice to drive change and improvements in the industry.

He said: “The debate on whether or not the UK should stay part of the European Union is reaching its climax and coming closer to the time when the UK public will have their say. We are conducting a thorough study of the impact of this on our business,” says Grimstone.

“We stay clear of the politics but, as you would expect, we are closely following developments and assessing the implications for our businesses as they emerge. As we have stated before, we believe that access to the EU Single Market is in the best interests of our customers and clients.

“The principle behind the Single Market – to encourage the free movement of goods and services – has created an environment that gives individuals and businesses the confidence to invest for the long term and it would be potentially damaging to the UK economy and therefore to companies such as Standard Life if the UK were to leave it.”

Standard Life previously spoke out about the implications of the Scottish referendum, saying that a “strong reputation for thought leadership” is important for the continued success of the company.

The latest comments came as Standard revealed in its annual results that former chief executive David Nish, who stepped down on July 1 last year, is continuing to receive his £835,000 a year salary until March 31, and will be eligible for a bonus. New chief Keith Skeoch’s salary has risen from £500,000 to £700,000.

Mr Skeoch said: “We are a non-political organisation but I happen to believe it would be in the best interests of customers and clients if we continued to benefit from access to the single market.”

He went on: “If people decide that actually it’s Brexit, we are a global business, we have been around for 195 years, we will be well-prepared.”