Aberdeen chief attacks ‘gummed up’ planning – Daily Business

Jason Windsor: planning clarity is needed (pic: DB Media Services)

Aberdeen Group’s chief executive says a “gummed up” planning system casts doubt on Rachel Reeves’ push for more investment by financial institutions into infrastructure and private businesses.

The Chancellor wants to see more of the funds held by major asset managers, pensions and insurance groups invested into the enterprise economy.

Following Aberdeen’s AGM in Edinburgh, Aberdeen CEO Jason Windsor was asked if it would change the company’s investment approach.

“Not really,” he replied. “They need to change the planning process. It is still gummed up with multiple parties and a lack of clarity about who is the decision maker, and multiple opportunities for different bodies… councils, quangos, local groups to get in the way of a clear planning process.

“We need democracy in action, we need to consult, but we also need a good process, otherwise things take too long. You’ve seen that in data centres.

“There is not enough drive from the top to say this is what is acceptable and the basis on which we will approve new developments.”

Aberdeen Group’s search for a chair also appears to be gummed up after an insider admitted it was proving a challenge to find the right candidate.

Senior independent director Jonathan Asquith has assumed the role after Sir Douglas Flint stood down following Tuesday’s board meeting.

Sir Douglas indicated at last year’s AGM that he would be retiring from the role, but the year-long search has not yet yielded a successor.

Douglas Flint has stood down but a successor has not been found (pic: DB Media Services)

One source said a candidate had been lined up but was forced to withdraw for personal reasons.

“Finding chairmen is not an easy task for a variety of reasons,” said the source who confirmed that no active negotiations were under way.

Mr Asquith will receive a pro rata fee of £475,000 but no additional director fees in relation to his other roles in the company during the period of his interim appointment.

He is not being considered for the job permanently because he has already been on the board for seven years and would be time-limited.

Mr Asquith told shareholders at the Assembly Rooms that strong progress was being made by its DIY savings and investment platform interactive investor (ii).

It enjoyed a record year and a record first quarter, significantly outperforming the adviser and investment businesses.

After the meeting, Mr Asquith, who had been involved in acquiring the business for £1.5 billion at the end of 2021, told Daily Business that the board was never in doubt about its value, despite concerns at the time that it had overpaid.

“We always thought it was good value,” he said. “I was part of the board that pursued that transaction. We were very confident in the quality of the business we were buying. We were also confident that…the returns would build substantially within a year or two of buying it.”

Aberdeen Group is the latest name for a company formerly known as Abrdn and, before that, Standard Life Aberdeen. It was noted that ii featured alongside Aberdeen in the banners on stage at the AGM. Given ii’s growing significance within the group, was another change of name imminent?

The joke provoked some laughter and an outright denial. “No!” said Mr Windsor, stating that Aberdeen Group was the plc, “but it is important we profile the retail brand. We have half a million-plus customers and its serves us well to get that brand out there.”

Responding to questions about more corporate activity in the sector, Mr Windsor said there would “definitely be some… but we are very comfortable with our own business. We have simplified the group, we have a clear strategy [and] we have ambitious targets.”

Following the acquisition of Aegon UK by Standard Life – the renamed Phoenix Group – Aberdeen will see its stake diluted from 10.4% to 8.8%.

Mr Asquith said the board had not considered a bid for Aegon as it was not the right fit for Aberdeen.

#Aberdeen #chief #attacks #gummed #planning #Daily #Business