Standard Life to close in Singapore as new boss issues Brexit warning

In a stock exchange announcement, SL said its insurance business in Singapore would no longer accept new applications or contributions to existing plans, with immediate effect.

The business – which represent a small part of the overall group – would give rise to a non-operating loss “in the order of £45m”, the firm said.

The move will be reported within discontinued operations in August’s interims, alongside the gain on the sale of its Canadian arm of £1.1 billion.

Assets under administration in Asia by the wholly owned business were £420m in February this year with customer numbers at 52,000.

Standard Life closed its Dubai operation last year with the loss of nine jobs. That decision was said to be driven by regulatory change in the United Arab Emirates.

The firm maintains an office in Hong Kong, which was set up in 1999, as well as joint ventures in India and China.

It said it will contact all customers in the areas affected by the latest closures to offer them a closure value.

Sandy Begbie, chief operations officer of Standard Life, said: “Asia is an important part of Standard Life’s strategy with an increasing focus on building on our relationships with Chinese and Indian partners, expanding our asset management presence and growing our wholly-owned business in Hong Kong. Following discussions with the regulators, we have contacted all of our customers in Singapore to offer them a closure value, including an enhancement paid into their plans.

“We feel this demonstrates Standard Life’s commitment to do what is fair and right for our customers and distribution partners in the market.”

Meanwhile, the group’s incoming chief executive has spoken out about what he has warned are the perils of Britain’s possible exist from the European Union.

Keith Skeoch said such a move could be “disastrous” for economic growth due to what he foresees as its impact on capital markets.

Mr Skeoch, who will take over from David Nish as Standard Life group chief executive in August chose to speak out on the issue which is set to be decided in a referendum held within the next two years at a conference in London.

Referring to that possibility, Mr Skeoch, who is currently head of the group’s wealth management arm Standard Life Investments said: “It is a political decision and a democratic decision by the electorate – and they will decide.

“But from a markets perspective it would be a shock that would register about 15 on the Richter scale.”

Mr Skeoch stressed that insurers and pension funds are increasingly investing in infrastructure either directly or through capital markets meaning investors needed to feel confident that market structures would not change over the lifetime of these long-term instruments.

He said: “You want to make sure the rights you have today will persist for the next 20 30 years.

“If you talk to institutional investors, one of the problems … is those sands shift – they can’t be allowed to.

Skeoch also said he would like to see a harmonised set of principles for corporate governance.

In recent years, large investors, such as Standard Life, have been focusing more closely on good practice at the companies in which they hold stake, often taking them to task on issues such as excessive pay and the independence of the board.