Standard Life Aberdeen has decided to offload its Parmenion advisory business, which services independent financial advisers.

According to reports, the Edinburgh-headquartered company is expected to announce an auction for Parmenion early this week.

Parmenion is a hybrid investment platform and discretionary fund manager, which provides ready-made investment portfolios for financial advisers to sell to their clients. It said to manage around £6.5bn of investments on behalf of IFAs.

The move follows new chief executive Stephen Bird’s plan to split the £512bn asset manager, which was created by the merger of Standard Life and Aberdeen Asset Management in 2017.

Prior to the merger, Aberdeen Asset Management acquired Parmenion Capital Partners and its sister company Self Directed Holdings in 2016.

At the time, Parmenion reportedly delivered around £10m each year in revenue on flat profits.

In addition to Parmenion, the combined group currently holds Wrap and Elevate platforms, which collectively have £61.2bn of assets.

Bird was quoted by Financial Times as saying: “Parmenion is a fantastic and highly regarded business but we need to simplify our offering to financial advisers.

“We will focus on our two adviser platforms, Wrap and Elevate, which operate on the same core technology.

“In the coming months we will be simplifying our model by merging their underlying technology, while retaining differentiated propositions for advisers.”

According to reports, Standard Life Aberdeen has appointed Fenchurch Advisory Partners to oversee the sale process.

The deal is anticipated to fetch up to £200m.

Standard Life Aberdeen, whose shares have dropped more than 15% over the last year, is said to have a market value of nearly £6bn.